Home  
Login  


CANCELLATIONS

 



   

A borrower may have all or part of his or her loan (including interest) canceled for engaging in public service such as teaching, service in the education component of a Head Start program, service in the Peace Corps or ACTION, or service in the military. Cancellation is also granted in case of the borrower's death or total and permanent disability.

Please note regulatory changes effective August 14, 2008, extend certain cancellations ( Firefighter, Public Defender, Librarian, Tribal College/University Faculty, Pre-K provider, Speech Pathologist) to borrowers who have performed qualified service for any 12 month period including August 14, 2008 or after. Changes have also been made for borrowers who have received Total and Permanent Disability classification from the VA.

These cancellations are effective for service performed after August 14, 2008 and cannot be granted for periods of service prior to that date.

Although cancellation provisions vary based on when a loan was disbursed, the following procedures apply to any loan:

Requests for cancellation must be completed annually on the appropriate cancellation form.

No portion of the loan may be canceled for services performed before the loan was disbursed or during the enrollment period covered by the loan.

No repayment made during a period for which a borrower qualified for cancellation may be refunded. Therefore, it is the borrower's responsibility to file forms in a timely manner.

The following cancellations may be available to borrowers whose loans are serviced by ACS' CPS Division. Click on a specific cancellation type to review the eligibility requirements.

FEDERAL PERKINS

Teacher Cancellation-loans made on or after 7/1/72

Head Start

Teaching/Employment Cancellations

Law Enforcement

Military Service

Volunteer Service

Total/Permanent Disability

Death

9/11 Survivors

Firefighter

Public Defender

Librarian

Tribal College/University Faculty

Pre-K Service Provider

Speech Pathologist

VA approved Total/Permanent Disability

NURSING

Permanent/Total Disability

Death

HEALTH PROFESSIONS

Permanent/Total Disability

Death

All forms are in Adobe Acrobat PDF format. You may obtain the free Adobe Acrobat reader which will allow you to print or view the forms here.

Click here for Cancellation form



FEDERAL PERKINS STUDENT LOAN CANCELLATION BENEFITS

TEACHER CANCELLATION - Loans on or after 7/1/72:

A borrower may be eligible to cancel all or a portion of their loan for teaching services as follows:

  • A full-time teacher in a public or nonprofit elementary or secondary school serving students from low-income families.
  • A full-time teacher of handicapped students in a public or nonprofit elementary or secondary school. The majority of children being taught must handicapped.
The cancellation rate is as follows:
  • 15% of the original principal loan amount plus accrued interest for the first and second years of service.
  • 20% of the original principal loan amount plus accrued interest for the third and fourth years of service.
  • 30% of the original principal loan amount plus accrued interest for the fifth year of service.
To receive a teacher cancellation, the borrower must be teaching full-time in a public or other nonprofit elementary or secondary school, or be a teacher in a low-income educational service agency. An eligible teacher is defined as:
  • direct classroom teaching
  • classroom type teaching in a non-classroom setting
  • educational services directly related to classroom teaching (school librarians and school guidance counselors are eligible under this category)
Eligibility - NDSL/ Perkins loans made on or after July 1, 1972
Maximum Amount Canceled - Up to 100%

Go To Top

HEAD START:

A borrower may qualify for a cancellation for service as a full-time staff member in the educational part of a preschool program carried out under the Head Start Act.

Eligibility - NDSL/Perkins loans made on or after July 1, 1972
Maximum Amount Canceled - Up to 100% at a rate of 15% of the original principal loan amount plus accrued interest for each year of service

Go To Top

TEACHING/EMPLOYMENT CANCELLATIONS - Loans on or after 7/23/92:

In addition to the teaching cancellations mentioned above, a borrower may be eligible to cancel all or a portion of their loan as follows:

  • A full-time special education teacher, including teachers of infants, toddlers, children, or youth with disabilities in a public or nonprofit elementary or secondary school system.
  • A full-time teacher in a public or other non-profit 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.
  • A full-time nurse or medical technician providing health care services.
  • A full-time qualified professional provider of early intervention services in a public or other nonprofit program under public supervision.,
  • 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 children must be the primary recipients of the services.
PLEASE NOTE:The Higher Education Amendments of 1988, signed into law on October 7, 1998, extend the above cancellation benefits to borrowers whose NDSL / Perkins loans were issued prior to July 23, 1992. The Teaching / Employment cancellations are in addition to the others listed in your promissory note but cannot be granted for service performed prior to October 7, 1998. The cancellation rate is as follows:
  • 15% of the original principal loan amount and accrued interest for the first and second years of service.
  • 20% of the original principal loan amount and accrued interest for the third and fourth years of service.
  • 30% of the original principal loan amount and accrued interest for the fifth year of service.
Eligibility - Federal Perkins loans made on or after July 23, 1992 or NDSL / Perkins loans made on or before July 23, 1992 for service performed beginning October 7, 1998
Maximum Amount Canceled - Up to 100%

Go To Top

LAW ENFORCEMENT:

A borrower may be entitled to receive cancellation benefits for full-time service as a qualifying law enforcement or corrections officer. To establish the eligibility of a borrower for this benefit, the school must determine a) the borrower's employing agency is eligible and b) the borrower's position is essentials to the agency's primary mission.

  • 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 criminals; activities of courts and related agencies having criminal jurisdiction; activities of corrections, probation, or parole authorities; and problems relating to the prevention, control, or reduction of juvenile delinquency or narcotic addiction. Agencies that are primarily responsible for enforcement of regulatory, civil, or administrative laws are ineligible.
  • For the borrower's position to be considered essential to the agency's primary mission, he or she must be a full-time employee of an eligible agency and a sworn officer 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 employee's functions.
Individuals whose official responsibilities are supportive, such as those that involve filing, typing, accounting, office procedures, purchasing, stock control, food service, transportation, or building, equipment or grounds maintenance are not eligible regardless of where these functions are performed. A borrower employed as a public defender also does not qualify for this benefit. Note: Borrowers serving as campus police or military police do qualify for this benefit. The cancellation rate is as follows:
  • 15% of the original principal loan amount and accrued interest for the first and second years of service.
  • 20% of the original principal loan amount and accrued interest for the third and fourth years of service.
  • 30% of the original principal loan amount and accrued interest for the fifth year of service.
Eligibility - Perkins loans made on or after November 29, 1990 or NDSL loans made before November 29, 1990 for service performed beginning October 7, 1998
Maximum Amount Canceled - Up to 100%

Go To Top

MILITARY SERVICE:

A borrower may cancel a portion of their loan for service in the U.S. Armed Forces in an area of hostilities or in an area of imminent danger that qualifies for special pay under Section 310 of Title 37 of the U.S. Code.

Effective August 14, 2008, The HEOA removes the 50% limitation on military service cancellations. Borrowers may now receive military service cancellation for service in an area of hostilities of up to 100% percent of the loan.

Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%

Go To Top

VOLUNTEER SERVICE:

A borrower may cancel a portion of their loan for volunteer service under the Peace Corps or Vista Service.

Eligibility - Perkins loans made on or after July 1, 1987 or NDSL loans made before July 1, 1987 for service performed beginning October 7, 1998
Maximum Amount Canceled - Up to 70% of the loan at the following increments:

  • 15% of the original principal loan amount plus accrued interest for the first and second years of service.
  • 20% of the original principal loan amount plus accrued interest for the third and fourth years of service.
Go To Top

TOTAL/PERMANENT DISABILITY:

A loan will be granted a conditional cancellation by the Department of Education upon the lending institution's approval of the disability request for a borrower who became permanently and totally disabled after receiving the loan. A determination of permanent and total disability must be based on medical evidence certified by a physician (medical doctor or doctor of osteopathy). If a loan is granted a final discharge based on permanent and total disability, the borrower can not be required to repay the loan, even if the borrower's medical condition improves to the point of no longer being disabled, unless the school can prove that the claim of disability was fraudulent. The beginning date of the 3 year conditional discharge will be the date the physician certifies the request form. At the end of 3 years, the Department of Education will review the case and make a determination for final discharge or repayment status.

For detailed information regarding TPD, please review the Department of Educationís website at: http://www.disabilitydischarge.com/Pages/General.aspx

Eligibility - Perkins, and Federal Perkins loans
Maximum Amount Canceled - 100%

Go To Top

DEATH:

A loan will be canceled in full upon receipt of proof of the borrower's death. Proof must be in the form of the original certified death certificate or a valid copy of a certified death certificate.

Eligibility - All National Defense, NDSL, Perkins, and Federal Perkins loans
Maximum Amount Canceled - 100%

Go To Top

9/11 SURVIVORS:

Effective September 30, 2006 (and NOTretroactive), loan principal will be canceled for a borrower who is the surviving spouse of an eligible public servant. An eligible public servant is a police officer, firefighter, member of the Armed Forces, or other safety or rescue personnel who died or became permanently and totally disabled as a result of injuries suffered in the September 11, 2001 terrorist attacks at the World Trade Center in New York, New York; at the Pentagon in Virginia; at the Shanksville, Pennsylvania site; or on board American Airlines flights 11 and 77 and United Airlines flights 93 and 175. This cancellation applies to loans on which amounts were owed on September 11, 2001 and on which amounts are still owed on the day cancellation is requested.

Eligibility - Perkins, and Federal Perkins loans
Maximum Amount Canceled - 100%

Click here for 9/11 Cancellation form

Go To Top

FIREFIGHTER:

full-time fire fighters with a local, State, or Federal fire department or fire district

Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%

Go To Top

PUBLIC DEFENDER:

full-time attorneys employed in Federal Public Defender Organizations or Community Defender Organizations, established in accordance with Section 3006A(g)(2) of Title 18, U.S.C. (see http://frwebgate.access.gpo.gov/cgibin/ getdoc.cgi?dbname=browse_usc&docid=Cite:+18USC3006A).

Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%

Go To Top

LIBRARIAN:

librarians with a master's degree in library science who are employed in an elementary or secondary school that qualifies for Title I funding, or in a public library that serves a geographic area that includes one or more Title I schools

Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%

Go To Top

TRIBAL COLLEGE/UNIVERSITY FACULTY:

full-time faculty members at a Tribal College or University

Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%

Go To Top

PRE-K SERVICE PROVIDER:

full-time as a staff member in a pre-kindergarten or childcare program, or in the educational part of a preschool program carried out under the Head Start Act.

Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%

Go To Top

SPEECH PATHOLOGIST:

full-time speech-language pathologists with a master's degree who are working exclusively with Title I-eligible schools.

Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%

Go To Top

VA APPROVED TOTAL/PERMANENT DISABILITY:

Go To Top



NURSING STUDENT LOAN (NSL) CANCELLATION BENEFITS

PERMANENT AND TOTAL DISABILITY:

Should the borrower become unable to engage in any substantially gainful activity because of a medically determined impairment, the unpaid balance of the loan and accrued interest may be canceled. To claim this entitlement, the borrower must submit to the lending institution, a formal request for loan cancellation and a physician's statement that certifies the date of onset, nature and extent of the disability.

Eligibility: All NSL Loans
Maximum Amount Canceled: 100%

Go To Top

DEATH:

Principal and interest installments may be canceled in the event of death. To claim this cancellation, the executor of the estate must submit a death certificate or evidence of death to the lending institution.

Eligibility: All NSL Loans
Maximum Amount Canceled: 100%

Note: A service cancellation for full-time employment as a registered nurse is available for NSL loans made prior to September 29, 1979. Consult the promissory note for eligibility.

Go To Top



HEALTH PROFESSIONS STUDENT LOAN (HPSL, LDS, PCL) CANCELLATION BENEFITS

PERMANENT AND TOTAL DISABILITY:

Should the borrower become unable to engage in any substantially gainful activity because of a medically determined impairment, the unpaid balance of the loan and accrued interest may be canceled. To claim this entitlement, the borrower must submit to the lending institution, a formal request for loan cancellation and a physician's statement that certifies the date of onset, nature and extent of the disability.

Eligibility: All HPSL Loans
Maximum Amount Canceled: 100%

Go To Top

DEATH:

Principal and interest installments may be canceled in the event of death. To claim this cancellation, the executor of the estate must submit a death certificate or evidence of death to the lending institution.

Eligibility: All HPSL Loans
Maximum Amount Canceled: 100%

Go To Top