Cancellation Benefits for Perkins/NDSL
Cancellation of principal and interest is granted for working full time in certain fields. A percentage of total loan borrowed can be cancelled for each year of work. Typically the cancellation is 15% of the total loan for the 1st and 2nd year, 20% of total loan for the 3rd and 4th year and 30% for the 5th year.
To receive a cancellation , a request for cancellation form must be completed, verified by employer and returned to the Perkins Loan office at St. Thomas. The borrower will receive confirmation of a processed cancellation form.
When a request for cancellation is made, you will need to file a deferment to defer your payments for up to twelve (12) months prior to filing the cancellation form.
Types of cancellations
For complete description and qualifications, please contact the Perkins Loan Office
Nurse/Medical Technician – full-time
Law Enforcement/Correction Officer – full-time
Qualified Professional Provider of Early Intervention Services – full-time
Employee of Child or Family Service Agency –full-time
Teaching – full-time Head Start Program
Foreign & Bi-Lingual Language
Shortage area for specific state
*All of the above can receive over five years a 100% cancellation.
Peace Corp/Action Programs-over 4 years – 70%
Military Service- Area hostilities – Hazardous Duty Pay – 12.5% per year up to 50%
Totally, Permanently Disabled – 100%
Death – 100%