Loan Cancellation Provisions

Teacher in a designated school listed in the “Federal Register”

The borrower of a Perkins Loan or NDSL made after July 1, 1987 is eligible to have up to 100% of the loan canceled for qualifying service. As a full-time teacher in a public or nonprofit elementary or secondary school serving students from low-income families. As a 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.

Staff member performing qualified service under the Head Start Act

A Perkins Loan or NDSL borrower who received the loan on or after July 1, 1987 is entitled to cancellation of up to 100% of the loan for qualifying service as a full-time staff member in the educational part of a preschool program carried out under the Head Start Act. The cancellation rate is 15% of the original principal loan amount – plus the interest that accrued during the year – for each complete school year. A full-time member is someone who is regularly employed in a full-time professional capacity to carry out the educational part of a Head Start Program. The program must operate for a full academic year, or its equivalent, and the borrower’s salary may not be more than that of a comparable employee working in the local educational agency. An authorized official of the Head Start Program must sign the borrower’s cancellation form to certify the borrower’s service.

Special education teacher or Qualified provider or Early Intervention services

A 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. A full-time qualified professional provider of early intervention services in a public or other nonprofit program under public supervision. Infants and toddlers with disabilities from birth to age two, inclusive, who need early intervention services for specified reason.

1. Have a diagnosed physical or mental condition, which has a high probability of resulting in developmental delay.
2. Experiencing developmental delays, as measured by appropriate diagnostic instruments and procedures in one or more of the following areas: cognitive development, physical development, language and speech development, psychological development, or self-help skills.

Law enforcement/Corrections officer for an eligible Local, State or Federal Agency (loans after 11-29-910)

To establish the eligibility of a borrower for the law enforcement or corrections officer cancellation provisions, the school must determine that 1) the borrower’s employing agency is eligible and the 2) the borrower’s position is essential to the agency’s primary mission.

1. A local, state or federal agency is an eligible employing agency if it is publicly funded and its activities pertain to crime prevention, control or reduction or to the enforcement of the criminal law. Such activities include, but are not limited to, police efforts to prevent, control, or reduce crime or to apprehend criminal; activities of courts and related agencies having criminal jurisdiction: an activities of corrections, probation, or parole authorities; and problems relation to the prevention, control or reduction of juvenile delinquency or narcotic addiction. Agencies that are primarily responsible for enforcement of civil, regulatory, or administrative laws are ineligible.
2. For the borrower’s position to be considered essential to the agency’ primary mission, he or she must be a full-time employee of an eligible agency and a sworn office or person whose principal responsibilities are unique to the criminal justice system and are essential in the performance of the agency’s primary mission. The agency must be able to document the employees’ functions. Individuals whose official responsibilities are supportive, such as those that involve typing, filing, accounting, office procedures, purchasing, stock control, food service, transportation, or building, equipment or grounds maintenance are not eligible for the law enforcement or correction officer loan cancellations regardless of where these functions are performed. Also a borrower employed as a public defender does not qualify for cancellation benefits under this provision.

Teacher of Mathematics, Science, foreign Languages, Bilingual education (loans after 7-23-92) – 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 teacher in the state.

Nurse – Medical Technician

must provide copies of license/ certification – A full-time nurse or medical technician providing health care services. Medical Technician – An allied health professional (working in fields such a 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. Nurse – A licensed practical nurse, a registered nurse, or other individual who is licensed by the appropriate state agency to provide nursing services.

Service agent providing or supervising the provision of services to high risk children from low- income communities and families of such children

A full-time employee of an eligible public or private nonprofit child or family service agency who is providing or supervising the provision of services to both high-risk children who are from low-income communities and the families of such children. 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. High-risk children under the age of 21 who are low-income and at risk of abuse or neglect have been abused or neglected, have serious emotional, or behavioral disturbances, reside in placements outside their homes, or are involved in the juvenile justice system.