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Perkins Loan Cancellation and Discharge Summary Chart


Cancellation Conditions Amount Forgiven
Bankruptcy (in rare cases -cancellation is possible only if the bankruptcy court rules that repayment would cause undue hardship) [a] 100 percent
Closed school (before student could complete program of study)-applies to loans received on or after Jan. 1, 1986 [a] 100 percent
Borrower's total and permanent disability [b] or death [a] 100 percent
Full-time teacher in a designated elementary or secondary school serving students from low-income families [a] [c] Up to 100 percent
Full-time special education teacher (includes teaching children with disabilities in a public or other nonprofit elementary or secondary school) [a] [c] Up to 100 percent
Full-time qualified professional provider of early intervention services for the disabled [a] Up to 100 percent
Full-time teacher of math, science, foreign languages, bilingual education, or other fields designated as teacher shortage areas [a] Up to 100 percent
Full-time employee of a public or nonprofit child- or family-services agency providing services to high-risk children and their families from low-income communities [a] Up to 100 percent
Full-time nurse or medical technician [a] Up to 100 percent
Full-time law enforcement or corrections officer [a] Up to 100 percent
Full-time staff member in the education component of a Head Start Program [a] Up to 100 percent
VISTA or Peace Corps volunteer [a] Up to 70 percent
Service in the U.S. Armed Forces [a] Up to 50 percent in areas of hostilities or imminent danger
Full-time teacher in a designated educational service agency serving students from low-income families [d] Up to 100 percent
Full-time special education teacher (includes teaching children with disabilities in educational service agency) [d]  
Full-time staff member in a prekindergarten or child care program that is licensed or regulated by a State [d] Up to 100 percent
Full-time fire fighter [d] Up to 100 percent
Full-time faculty member at a Tribal College or University [d] Up to 100 percent
Full-time speech pathologist with a master's degree working in a Title l-eligible elementary or secondary school [d] Up to 100 percent
Librarian with a master's degree working in a Title I-eligible elementary or secondary school or in a public library serving title-eligible schools [d] Up to 100 percent
Full-time attorney employed in a public or community defender organization [d] Up to 100 percent
Service in the U.S. Armed Forces [d] Up to 100 percent in areas of hostilities or imminent danger

[a] As of Oct. 7, 1998, all Perkins Loan borrowers are eligible for all cancellation benefits regardless of when the loan was made or the terms of the borrower's promissory note. However, this benefit is not retroactive to services performed before Oct. 7, 1998.
[b] Total and permanent disability is defined as the condition of an individual who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death; has lasted for a continuous period of not less than 60 months; can be expected to last for a continuous period of not less than 60 months; or has been determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected disability. For more information on qualifying for this discharge, contact your loan holder.
[c] Detailed information on teaching service cancellation/deferment options can be found at www.FederalStudentAid.ed.gov. At the site, click on "Students, Parents and Counselors."
[d] As of Oct. 7, 1998, all Perkins Loan borrowers are eligible for all cancellation benefits regardless of when the loan was made or the terms of the borrower's promissory note. Service must include Aug. 14, 2008.



Stafford and PLUS Loan Cancellation and Discharge Summary Chart


Discharge/Forgiveness Condition Amount Discharged/Forgiven Notes
Borrower's total and permanent disability or death.† 100 percent For a PLUS Loan, includes the death, but not disability, of the student for whom the parents borrowed.
Full-time teacher for five consecutive years in a designated elementary or secondary school or educational service agency serving students from low-income families. Must meet additional eligibility requirements. Up to $5,000 (up to $17,500 for elementary/secondary special education teachers and secondary math and science teachers) of the total loan amount outstanding after completion of the fifth year of teaching.
Under the Direct and FFEL Consolidation Loan programs, only the portion of the consolidation loan used to repay eligible Direct Loans or FFEL Loans qualifies for loan forgiveness.		 For Direct and FFEL Stafford Loan borrowers with no outstanding balance on a Direct or FFEL Loan on Oct. 1, 1998, or on the date they received a loan on, or after that date. PLUS Loans are not eligible. At least one of the five consecutive years of teaching in an elementary/secondary school must occur after the 1997-98 academic year. Teaching at an educational service agency may count toward the required five consecutive years only if the consecutive five-year period includes teaching service at an educational service agency performed after the 2007-2008 academic year.
To find out whether your school or educational service agency where you teach is considered to serve low-income students, go to www.FederalStudentAid.ed.gov. Click on "Students, Parents and Counselors." Or call 1-800-4-FED-AID (1-800-433-3243).
Bankruptcy (in rare cases) 100 percent Cancellation is possible only if the bankruptcy court rules that repayment poses an undue hardship to the borrower.
Closed school (for borrowers who could not complete their program because the school closed while they were enrolled) 100 percent For loans received on or after Jan. 1, 1986.
False loan certification (school falsely certified a borrower's eligibility to receive a loan) 100 percent For loans received on or after Jan. 1, 1986.
False certification by reason of identity theft (loan was made as a result of the crime of identity theft, as determined by a court) 100 percent Effective July 1, 2006
School does not make required return of loan funds to the lender Up to the amount that the school was required to return. For loans received on or after Jan. 1, 1986.
Loan forgiveness for public service employees 100 percent of the remaining outstanding balance on an eligible Direct Loan. For a borrower not in default and who makes 120 monthly payments on the loan while the borrower is employed in a public service job after Oct. 1, 2007.

†Total and permanent disability is defined as the condition of an individual who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death; has lasted for a continuous period of not less than 60 months; can be expected to last for a continuous period of not less than 60 months; or has been determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected disability. For more information on qualifying for this discharge, contact your loan holder.

Last updated/reviewed October 20, 2009

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