Federal Perkins Loan provisions
Under the provisions described here, your payments on a Federal Perkins Loan may be deferred, reduced, or even cancelled. If you think you meet any of these conditions, contact our loan office at: (800) 656-2333 or (509) 527-2333
Deferment of Payments
Your loan payments may be deferred if one of the following conditions applies. (Interest will not accrue during the period of deferment.)
Continuing Enrollment in School
If you are enrolled at least half-time as a student working toward a degree or certificate at an institution approved by the U.S. Department of Education, your loan payments may be deferred.
If you are unable to find full-time employment, repayment of your loan may be deferred for a maximum of 36 months. (An employment agency must verify that you are registered with them and actively seeking work.)
If you are working but facing financial hardship, please call us to find out whether you qualify to have your loan repayments deferred for up to 36 months. We will need documentation showing your most recent monthly disposable income from all sources, a copy of your most recent federal income tax return, and a record of your total outstanding educational loans.
Reduction of Payments
If you are working but face financial hardship, your loan payments may be reduced for up to 36 months. You will need to complete a financial statement in order to qualify for reduced payments. Interest will continue to accrue, and you may choose to pay it each month or to pay it in full at the end of your deferment.
Cancellation of Loan Debt
Except where otherwise indicated, total cancellation of loan debt takes five years: 15% is cancelled for each of the first two years, 20% for the third year and for the fourth year, and 30% for the fifth year.
Employment as a Medical Technician
If you are employed full-time as a medical technician and are certified, registered or licensed by the appropriate state agency, your loan debt may be cancelled. Qualifying types of medical service are:
- Anesthesiology assistance
- Athletic training
- Blood-bank technology
- Cardiovascular technology
- Dental hygiene
- Diagnostic medical sonography
- Electroneurodiagnostic technology
- Emergency medical services
- Medical assistance
- Medical illustration
- Medical laboratory technology
- Health information management/nutrition
- Nuclear medicine technology
- Occupational therapy
- Ophthalmic medical technology
- Physical assistance practice
- Radiological technology
- Respiratory technology
- Respiratory therapy
- Surgical technology
Employment as a Teacher
If you are a full-time teacher in a public or non-profit elementary or secondary school and meet one of the following criteria, your loan debt may be cancelled:
- Your school primarily serves low-income families (List of qualifying schools available from us)
- You teach handicapped students or are a special-education teacher working with infants, children or youth with disabilities
- You teach mathematics, science, foreign language, bilingual education or in any other field for which a state education agency has determined there is a shortage of qualified teachers in your state
Your loan debt may be cancelled if you are employed full-time as one of the following:
- Practical or registered nurse licensed by the appropriate state agency
- Law enforcement or corrections officer
- Qualified professional provider of early intervention services in a public or other non-profit program under public supervision
- Employee of an eligible public or private non-profit child or family service agency and are providing or supervising the provision of services to high-risk children from low-income communities and to their families
You may also be eligible to have your loan debt cancelled as follows:
- For each year you serve as a full-time staff member in a Head Start program, your loan debt may be cancelled at a rate of 15% per year.
- If you serve full-time in the Peace Corps or the ACTION program, up to 70% of your loan debt may be cancelled: 15% during each of your first two years of service, and 20% for a third and fourth year of service.
- If you serve in the U.S. Armed Forces in an area of hostilities or imminent danger, up to 50% of your loan debt may be cancelled (12.5% per year).
- Your loan debt may be cancelled if you are totally disabled (defined as: unable to work to earn money because of a medically determined impairment that is expected to continue for an indefinite period of time or to result in death).
- Your remaining loan debt will be cancelled in the event of your death.