Perkins Loans are eligible for deferments and cancellations depending on the terms of your promissory notes. Deferments may be granted if you return to school to seek a degree and are enrolled at least half time. You may download a deferment form to take to your current school's Registrar's office for completion. Please read all instructions carefully. If the deferment form is filled out incorrectly, it will be returned to you causing a delay in the processing of the deferment. The billing process cannot be stopped until the appropriate official certification has been received.
Certain types of employment qualify the Perkins Loan for deferment and cancellation. Depending on the terms of your promissory note, payments can be deferred for up to 12 months at a time. Common types of employment that qualify are:
- Teachers in designated low-income schools,
- Teachers of the handicapped,
- Teachers of math, science, and bi-lingual languages,
- Law enforcement officials,
- Those working with high-risk children from low-income communities,
- Some volunteer programs.
- Nurses and Medical Technicians. You must be state licensed to qualify.
A percentage of the loan will be canceled after each 12-month period of service is verified. Remember that a full 12 months of service must be completed to have the cancellation approved. The rate of cancellation is 15% each the first and second year of approved service, 20% each the third and fourth year, and 30% the fifth year. Refer to your Promissory Note and contact the Perkins office for other details. You may download the appropriate forms from the ECSI website or contact ECSI.
Military Deferment: Beginning July 1, 2006 Federal Perkins regulations changed to allow Military Deferments for borrowers with loan advances after July 1, 2001. This deferment applies only to borrowers serving on active duty and qualifying National Guard duty during a war, or other military operation, or national emergency. For more information please go to the ECSI website at ecsi.net/militarydef or contact ECSI.
Military Service Cancellation: Schools must cancel up to 50% of a Perkins Loan if the borrower has served a period of full-time active duty in the armed forces (that is, the U.S. Army, Navy, Air Force, Marine Corps or Coast Guard), the National Guard or the Reserves. The service must be in an area of hostilities or an area of imminent danger that qualifies for special pay under Section 310 of Title 37 of the U.S. Code. The cancellation rate for every complete year of qualifying service is 12.5% of the original principal loan amount. Please access the cancellation form by using the above “deferment form” link and then scrolling down to “ECSI Forms, Cancellation.”
