| NOTICE: The 1998 reauthorization of regulations
governing partial cancellation of Perkins Student Loans
has amended some of the cancellation provisions effective
October 7, 1998. |
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Under certain conditions, a borrower may have all or part
of his or her loan cancelled. Cancellation means that
a portion of all of the principal borrowed plus accrued
interest will never have to be repaid by the borrower.
Important note: Before consideration may be given
for any partial cancellation request (or a request forpayment
postponement/deferment in anticipation of a future partial
cancellation), the borrower's account must be current
to the beginning date of qualifying employment or, for
borrowers of older loans requesting the new October 1998
reauthorization cancellations, current to October 1, 1998.
Please contact the Student Loan Service Center if you
need additional information.
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| PARTIAL CANCELLATIONS: |
- TEACHER
Full-time teacher in a public or nonprofit elementary
or secondary school serving students from low-income
families or
Full-time teacher of handicapped students in
a public or nonprofit elementary or secondary school.
The majority of the students the borrower teaches must
be handicapped children.
Full-time special-education teacher, including teachers
of infants, toddlers, children, or youth with disabilities
in a public or other nonprofit elementary or secondary
school system;
Full-time teacher in a public or other nonprofit elementary
or secondary school in the fields of mathematics, science,
foreign languages, or bilingual education or in any other
field of expertise that is determined by a state
education agency to have a shortage of qualified teachers
in that state;
Full-time staff member in HEAD START.
A licensed practical nurse, a registered nurse, or
other individual who is licensed by the appropriate
state agency to provide nursing services.
An allied health professional (working in fields such
as therapy, dental hygiene, medical technology, or nutrition)
who is certified, registered, or licensed by the appropriate
state agency in the state in which he or she provides
health care services; an allied health professional
is someone who assists, facilitates, or complements
the work of physicians and other specialists in the
health care system.
- QUALIFIED PROFESSIONAL PROVIDER OF EARLY INTERVENTION
SERVICES
A provider of services, as defined in section 672(2)
of the Individuals with Disabilities Education Act.
Section 672(2) of that Act defines developmental services
as those services that are provided under public supervision;
are provided at no cost except where federal or state
law provides for a system of payments by families, including
a schedule of sliding fees; are designed to meet a handicapped
infants' or toddler's developmental needs.
- CHILD AND FAMILY SERVICE AGENCY EMPLOYEE
To receive loan cancellation for being employed at
a child or family services agency, a borrower must be
providing services only to high-risk children
who are from low-income communities. The borrower may
also be providing services to adults, but these adults
must be members of the families of the children for
whom services are provided. The services provided to
adults must be secondary to the services provided to
the high-risk children. The Department has determined
that an elementary or secondary school system or a hospital
is not an eligible employing agency.
- LAW ENFORCEMENT OR CORRECTIONS OFFICER
To establish the eligibility of a borrower for the
law enforcement or corrections officer cancellation
provision, the school must determine that 1) the borrower's
employment agency is eligible and 2) the borrower's
position is essential to the agency's primary mission.
Please contact the Student Loan Service Center to determine
if you are eligible. (Agencies that are primarily responsible
for enforcement of civil, regulatory, or administrative
laws are ineligible.)
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| PARTIAL CANCELLATIONS ARE TYPICALLY GIVEN
AT THE FOLLOWING RATES: |
15% for each of the first and second year;
20% for each of the third and fourth years; and
30% for the fifth year.
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| TOTAL CANCELLATIONS (DEATH, TOTAL AND
PERMANENT DISABILITY) |
DEATH:
Upon receipt of a CERTIFIED COPY OF DEATH CERTIFICATE, the
unpaid balance of the loan, including interest will be cancelled.
TOTAL AND PERMANENT DISABILITY (EFFECTIVE 7/1/02):
New standards and procedures for granting total and permanent
disability write off are in effect as of July 1, 2002.
The Loan Discharge Application for Total
and Permanent Disability must be completed. It is
important to read " SECTION 4: INSTRUCTIONS FOR COMPLETING
THE FORM".
If MnSCU Student Loan Service Center determines that
the borrower meets the criteria for a disability discharge,
it must assign the loan to the Department of Education's
Disability Discharge Unit. The Department reviews all
assigned loans with discharge applications to affirm that
the borrower meets the criteria for a discharge. If the
Department is in agreement, the loan is placed in a conditional
discharge status for three years. During this conditional
discharge period, the borrower is not required to make
payments and interest does not accrue.
The Department will monitor whether the borrower has
been able to work and earn money or has received a new
Title IV loan in order to ensure that the borrower continues
to qualify for the total and permanent disability discharge.
At the end of the conditional discharge period, the Department
will make a determination that the borrower has met the
definition of total and permanent disability if he or
she has not had annual earnings from work during the conditional
discharge period in excess of the poverty level for a
family of two, and has not received any new Title IV loans
during the period. If these conditions are met throughout
the conditional discharge period, they will grant a final
discharge.
In some cases, a borrower may have become totally and
permanently disabled, as determined by a physician, three
or more years before the loan is assigned. In these cases,
the initial determination of eligibility- based on the
borrower's medical documenation- and the final determination
of eligibility- based on the borrower's earnings and subsequent
Title IV loan activity- will be conducted at the same
time and the Department may immediately grant a final
discharge.
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