Federal Perkins Loan Partial Cancellations

Partial cancellation of your loan means that you do not have to repay a portion of your student loan. For each complete year of work performed in selected fields, you are entitled to a partial cancellation of your Federal Perkins Loan. Some types of cancellation benefits are available for the entire balance of your Federal Perkins Loan over a period of five years, whereas others are available up to a fixed percentage of your balance, usually over a shorter period. You will not be refunded for payments you make during a period in which you were eligible for a cancellation, so it's important to file for the cancellation in a timely way.

As with deferments, eligibility for specific types of cancellations is determined by the date that the loan was issued. If you are, or will be, eligible for one of these types of cancellation, then you are also entitled to a deferment covering the same period. You may qualify for partial cancellation if you are serving in one of the following capacities:

  • Full-time teacher of:
    • Elementary or Secondary low-income school as determined by the Department of Education
    • Special Education for Infants/Toddlers/Youth with Disabilities - classroom must be 100% Special Education
    • Mathematics, science, foreign language, bilingual education or state designated teacher-shortage area
    • Head Start program
  • Other service cancellations (must serve full-time)
    • Criminal law enforcement or corrections officer
    • Nurse or medical technician
    • Child/family services to high-risk children from low-income communities
    • Early intervention services for children under the age of 3
    • Peace Corps or Volunteer Services
    • Military Service (combat for at least one year in an area of hostility/imminent danger
    • Surviving spouse of eligible public servant - 9/11 attacks
    • Total/Permanent Disability (see further information on the Dept of Education web site http://disabilitydischarge.ed.gov)
    • Death (please call (207) 725-3851)
  • Service cancellations available after August 14, 2008:
    • Pre-K staff member service
    • Tribal college/university faculty member
    • Firefighter (full-time employment)
    • Attorney employed in a defender organization
    • Librarian serving a Title 1 school (Master's degree in Library Science required)
    • Speech Pathologist in a Title I school (Master's degree in Speech Pathology required)

Click here for information about loan cancellation option, eligibility, and forms.