Perkins Loan Cancellation

The Federal Government will cancel your student loan under certain circumstances. This process is called loan forgiveness and to qualify for the loan forgiveness or loan cancellation you must meet certain set criteria. In short you must do one of the following

• Perform volunteer or military service
• Be a full time Teacher to a certain type of audience
• Practice medicine or
• Meet other criteria as specified by the loan program.

The Federal Government tries to balance the loan programs it runs with many benefits and loan cancellation options are one that make a federal student loans very attractive. So if you are filling out a Perkins loan application, bear this in mind. Since the Perkins Loan is a federal governmet funded loan, it comes with the same opportunites to cancel. One of the main advantages of the Perkins Loan is the wide range of opportunities that are available for the cancellation of the Perkins Loan.

Here are all the possible options yo have to cancel your Perkins Loan

Become a full time teacher

You are permitted to cancel a portion of, or the entire loan for services of teaching if you become an eligible teacher. This type of cancellation was introduced under The National Defense Education Act. This program lets you deduct 15% of your loan for the first and second year of teaching service. This percentage is then increased to 20% for the third and fourth and finally the remaining 30% of you loan is forgiven during your fifth year of teaching service.

Head start cancellation of the Perkins Loan

This type of cancellation is considered when the school you are enrolled in, closes unexpectedly. This may also be when you are in an approved leave of absence during the academic year.

Loan cancellation due to military services

You are entitled to partial cancellations (up to 50%) if you are serving for the U.S. Army in an area designated as a hostile area or in an area of imminent danger. Serve in the Army National Gaurd and receive $10000 towards your student loan repayment.

Volunteer service loan cancellation program

You can cancel your loan partially (up to 70 %) if you are serving under the Peace Corps service. 15% of your student loan is forgiven for each year of service upto a maximum of 70% of the total loan amount. Serve 12 months in the Americorps and get $7400 in stipends and $4725 towards your loan cancellation. Finally volunteer with VISTA (Volunteers in Service to America) and receive $4725 for 1700 hours of service.

Cancellation due to Total and Permanent Disability

In this case your loan will be cancelled in full only if you become disabled completely, after receiving the loan. Permanent and Total disability is the incapability to work and earn money or to attend school due to an impairment that is expected to continue with no definite end or to result ultimately in bereavement.

Cancellation due to Death

A loan is also subjected to cancel in full, in case of death, without burdening your heirs to repay the loan debt.

As you can see, there are many options to cancel your federal student loans and in particular your Perkins Loan.

1. Careers That Allow For Student Loan Discharge or Cancellation Careers that allow for cancellation of Student Loans Though many people believe it is not possible to avoid paying a student loan there are many exceptions to this and one important one is related to the employer  the student chooses after graduation.  There are many federal programs that allow for debt forgiveness and cancellation that ......
2. School Related Student Loan Cancellation There are few ways in which someone can have a student loan canceled using a school related argument.  For example, those that feel they went to a school that did not provide them with a proper education, job placement services, or left you with other unfulfilled promises cannot simply cancel the loan.  But given the ......
3. What is Student Loan Forgiveness? Student Loan Forgiveness Did you even know this is possible? Well it is in some circumstances so cross you fingers and let’s see if you fit into any of the ways to have all or part of your student loan debt forgiven. Volunteering With the Peace Corps you are able to defer payments of Stafford ......
4. How To Cancel Your Student Loans? Can I cancel my student loans? Previously, we talked about how to legally get rid of your student loans. Let us today take a closer look into the various circumstances that allow your to cancel your student loans. Canceling a student loan is something that can be accomplished given you, the lender, or the school ......
5. Student Loan Repayment Options We have talked about Student loan repayment quite a bit. Some of the articles that come to mind are the student loan employment repayment, Perkins loan repayment amongst many others. In this article, let us look at what your repayment options are when it comes to student loans. Looking at your repayment options might be ......
6. Student Loan Employer Repayment What is Student Loan Employer Repayment? There are two things that people are searching for when referring to student loan repayment.  The first is the specific programs offered by employers that will pay off or pay down your student loan and the second is those that want to know the repayment options available for a ......
7. Death and Disability – Student Loan Forgiveness Death and Disability Impact on Student Loans Federal Student loan debt is always fully discharged on death.  This is an important fact to understand for those that are handling the estate of a deceased borrower.  It is also critical to understand that as the spouse of the deceased you will not be forced to carry ......
8. Income Contingent Repayment What is Income Contingent Repayment? Previously, we talked about the income based repayment (IBR) plan. Today’s article will highlight the income contingent repayment program. Under various student loan programs you will see this repayment option referred to as the Income Contingent Repayment Program (ICRP) and the Income Contingent Repayment (ICR) option.  These are the same ......
9. Income Based Repayment vs Income Contingent Repayment What are the differences between IBR and ICR repayments? We talked quite a bit about Income based student loan repayment and Income contingent student loan repayment options in our previous articles. In this article let us take a look at the differences between the two. The first level difference between these two programs is the ......
10. Can I Get A Grant To Pay Off My Student Loans? We get this questions a lot and the short answer to it is Yes and No. There are no direct grants that will help you pay off your student loans but there is a relief program or also what is called as a forgiveness program where if you qualify you can have a significant amount ......