Cancellations

NOTICE: The 1998 reauthorization of regulations governing partial cancellation of Perkins Student Loans has amended some of the cancellation provisions effective October 7, 1998.

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.

• 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.

• NURSE

A licensed practical nurse, a registered nurse, or other individual who is licensed by the appropriate state agency to provide nursing services.

• MEDICAL TECHNICIAN

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.)

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.