Student Loan Repayment

Student Loan Repayment

Federal Perkins (NDSL) 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 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 made for a period in which you were eligible for a cancellation.

As with deferments, your eligibility for specific types of cancellations is determined by the date that your 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 serving in one of the following capacities. Cancellations are available for:

  • full-time teaching in a elementary or secondary school if:
    • your school is designated by the Department of Education as one that serves a high proportion of low-income students
    • you teach in the field of special education
    • you teach in a field that has been designated as a field of expertise experiencing a shortage of qualified teachers by the Department of Education or your state's education agency
  • full-time employment as a nurse or medical technician
  • full-time employment in a public or non-profit child or family service agency
  • service a qualified professional provider of early intervention services
  • service as a law enforcement or corrections officer
  • full-time employment as a staff member in a Head Start program
  • a member of the U.S. Army, Navy, Air Force, Marines, or Coast Guard serving in an area of hostilities that qualifies for special pay
  • volunteer service in the Peace Corps or ACTION programs as established by the Domestic Volunteer Service Act of 1973
  • death (please call 800-826-4470)
  • permanent disability

Click here [pdf] for a cancellation request form.