Federal Perkins Student Loan
Did you know:
If you meet the eligibility requirements for cancellation of your Federal Perkins student loan, you may cancel up to 100% of your outstanding principal loan amount, over a five year period, provided you are performing qualified services in the areas listed below. Qualifying service must be performed after you receive the loan. It is your responsibility to submit the appropriate requests/paperwork in a timely manner.
To qualify for cancellation of a Perkins loan, the borrower must be employed full time in an Allied Health Profession field. The rates for canceling the loan over a five year period are: 15% of the original principal loan amount for the first and second year; 20% for the third and forth year; and 30% for the fifth year. A borrower may work for more than one employer as long as the combined employment is full time. If the borrower switches employment during the year, employment verification must be received from both employers and the lapse in work can be no longer than 2 weeks. Once the borrower is employed full time in his or her field, the borrower must submit a PostponementCancellation form to the Bursar’s Office. The form must be certified by your employer(s). If a raised seal/stamp is not available, the employer must provide an official letter of employment verifying his/her start date and full time position. Along with the form and/or certification of employment, the borrower must provide a copy of his/her current license/certificate. Once the items are received and verified, a postponement is posted to the borrower’s account for a period of a year. After one year, the borrower must repeat the process and continue to do so for five years to cancel the entire loan. If at anytime the borrower ceases to be employed full time for longer than 2 weeks, the borrower is considered noncompliant and will be required to make monthly payments. The borrower is eligible to postpone/cancel once he/she regains employment on a full time basis. A borrower in default with an accelerated loan cannot qualify for a cancellation of services performed on or after the date of acceleration.
Please feel free to contact the Bursar’s Office at 501-686-6128 for more information!