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Student Loan Service Center

Cancellations

NOTICE: The Higher Education Opportunity Act of 2008 effective August 14, 2008 added additional benefits.

Under certain conditions, a borrower may have all or part of his or her loan canceled. Cancellation means that a portion of all of the principal borrowed plus accrued interest will never have to be repaid by the borrower.  All cancellations require FULL-TIME employment for 12 consecutive months (or academic year for teachers).

Important note: Before consideration may be given for any partial cancellation request (or a request for payment postponement/deferment in anticipation of a future partial cancellation), the borrower's account must be current to the beginning date of qualifying employment. Please contact the Student Loan Service Center if you need additional information.

HEALTH CARE PROVIDERS

The National Health Service Corps offers loan repayment assistance to support qualified health care providers who choose to bring their skills where they’re most needed.   This program is open to licensed primary care medical, dental, and mental and behavioral health providers who are employed or have accepted an offer of employment at an NHSC-approved site.

http://nhsc.hrsa.gov/loanrepayment/

 NURSES

NURSE Corps LRP, is to assist in the recruitment and retention of professional registered nurses (RNs), including advanced practice RNs (i.e., nurse practitioners, certified registered nurse anesthetists, certified nurse midwives, clinical nurse specialists), dedicated to working in health care facilities with a critical shortage of nurses, referred to as a Critical Shortage Facility (CSF), or working as nurse faculty at an accredited eligible school of nursing, by decreasing the financial barriers associated with pursuing a nursing profession. The program offers these RNs substantial financial assistance to repay a portion of their qualifying educational loans in exchange for full-time service at either a health care facility with a critical shortage of nurses or at an accredited eligible school of nursing in the case of nurse faculty.

http://www.hrsa.gov/loanscholarships/repayment/nursing/guidance.pdf


Partial Cancellations (For Perkins Loans Only):

TEACHER

  • Full–time teacher in a public or nonprofit elementary or secondary school serving students from low–income families or
    Full–time teacher of handicapped students in a public or nonprofit elementary or secondary school. The majority of the students the borrower teaches must be handicapped children.
  • Full–time special–education teacher, including teachers of infants, toddlers, children, or youth with disabilities in a public or other nonprofit elementary or secondary school system;
  • Full–time teacher in a public or other nonprofit 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;
  • Full–time staff member in HEAD START.

NURSE
A licensed practical nurse, a registered nurse, or other individual who is licensed by the appropriate state agency to provide nursing services.

MEDICAL TECHNICIAN
An allied health professional (working in fields such as therapy, dental hygiene, medical technology, or nutrition) who is certified, registered, or licensed by the appropriate state agency in the state in which he or she provides health care services; an allied health professional is someone who assists, facilitates, or complements the work of physicians and other specialists in the health care system.

QUALIFIED PROFESSIONAL PROVIDER OF EARLY INTERVENTION SERVICES
A provider of services, as defined in section 672(2) of the Individuals with Disabilities Education Act. Section 672(2) of that Act defines developmental services as those services that are provided under public supervision; are provided at no cost except where federal or state law provides for a system of payments by families, including a schedule of sliding fees; are designed to meet a handicapped infants’ or toddler’s developmental needs.

CHILD AND FAMILY SERVICE AGENCY EMPLOYEE
To receive loan cancellation for being employed at a child or family services agency, a borrower must be providing services only to high–risk children who are from low–income communities. The borrower may also be providing services to adults, but these adults must be members of the families of the children for whom services are provided. The services provided to adults must be secondary to the services provided to the high–risk children. The Department has determined that an elementary or secondary school system or a hospital is not an eligible employing agency.

LAW ENFORCEMENT OR CORRECTIONS OFFICER
To establish the eligibility of a borrower for the law enforcement or corrections officer cancellation provision, the school must determine that 1) the borrower’s employment agency is eligible and 2) the borrower’s position is essential to the agency’s primary mission. Please contact the Student Loan Service Center to determine if you are eligible. (Agencies that are primarily responsible for enforcement of civil, regulatory, or administrative laws are ineligible.)

MILITARY SERVICE CANCELLATION
The HEOA elimates the 50 percent limitation on military service cancellations. Borrowers may now receive military service cancellation of up to 100 percent.

STAFF MEMBER PREKINDERGARTEN OR CHILD CARE PROGRAM
The borrower must be a full–time staff member in a family child care program, center–based child care program. State prekindergarten program, school program, or other out–of home early childhood development care program, that is: licensed or regulated by the State; and serves two or more unrelated children who are not old enough to attend kindergarten.

 

FIRE FIGHTER
The borrower must be a full–time fire figher with a local, State or Federal fire department or fire district.

LIBRARIAN WITH MASTER’S DEGREE
The borrower must be a full–time librarian with a master’s degree in library science who is 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.

SPEECH LANGUAGE PATHOLOGIST
The borrower must be a full–time speech language pathologist with a master's degree who is working exclusively with Title I eligible schools.

PUBLIC DEFENDER
The borrower must be a full–time public defender.

Partial Cancellations are typically given at the following rates:

  • 15% for each of the first and second year;
  • 20% for each of the third and fourth years; and
  • 30% for the fifth year.

Applications for Cancellation must be filed annually.

Total Cancellations for Death or Total and Permanent Disability:

DEATH
Upon receipt of a COPY OF THE CERTIFIED DEATH CERTIFICATE, the unpaid balance of the loan, including interest will be cancelled.

TOTAL AND PERMANENT DISABILITY
New standards and procedures for granting total and permanent disability write off are in effect. The Loan Discharge Application can be found at http://www.disabilitydischarge.com/home/

and must be completed and documentation submitted to: U.S.Department of Education TPD Servicing PO Box 87130 Lincoln, NE 68501-7130.

If you need help completing the form, contact the Total and Permanent Disability Discharge Servicer: Phone:1-888-­303-­7818

E-­‐Mail: disabilityinformation@nelnet.net

Website: www.disabilitydischarge.com

If the Department of Education's Disability Discharge Unit determines that the borrower meets the criteria for a disability discharge, the Department will notify the school to assign the loan to them. The loan is then placed in a conditional discharge status for three years. During this conditional discharge period, the borrower is not required to make payments and interest does not accrue.

The Department will monitor whether the borrower has been able to work and earn money or has received a new Title IV loan in order to ensure that the borrower continues to qualify for the total and permanent disability discharge. At the end of the conditional discharge period, the Department will make a determination that the borrower has met the definition of total and permanent disability if he or she has not had annual earnings from work during the conditional discharge period in excess of the poverty level for a family of two, and has not received any new Title IV loans during the period. If these conditions are met throughout the conditional discharge period, they will grant a final discharge.

In some cases, a borrower may have become totally and permanently disabled, as determined by a physician, three or more years before the loan is assigned. In these cases, the initial determination of eligibility, based on the borrower’s medical documenation; and the final determination of eligibility, based on the borrower’s earnings and subsequent Title IV loan activity– will be conducted at the same time and the Department may immediately grant a final discharge.

 

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