Student Loan Ombudsman

If you dispute your loan terms in writing and the institution does not resolve the dispute, you may contact the following office for assistance:

Toll-free: 1-877-557-2575 • Phone: 1-202-377-3800 • Fax: 1-202-275-0549

Website: studentaid.gov/feedback-ombudsman/disputes/prepare

Listed below are several types of deferments that will allow you to cancel a percentage of your Perkins loan for each year you are employed in that field.

To apply for deferment, you must complete the appropriate form and send it in to our office at the beginning of the benefit period. Failure to provide the form before the account goes into billing may result in late fees which must be paid BEFORE the deferment can be processed. Late fees are calculated at a rate of $8 per month. Deferment requests more than two years from the qualifying dates of employment will not be accepted.

To apply for a cancellation, you must send in a new form at the end of the benefit period which verifies the completion of your employment for the previous year.

The same form can be used to defer and cancel your loan.

Any payments that may have been made during a time period eligible for deferment cannot be refunded. Any interest that may have been paid will be transferred to your principal balance.

After the period of deferment ends, your loan will go into a 6 month grace period and then into billing status.

Teaching

Elementary or Secondary Schools Serving Low-Income Students

Borrowers must be a full-time teacher directly employed by the school system, in a public or other nonprofit elementary or secondary school that the U.S. Department of Education has designated as a low-income school which has a high concentration of students from low-income families for a complete academic year or its equivalent.

As of Aug. 14, 2008, full-time teachers working in designated low-income elementary or secondary schools who are employed by an educational service agency or at a location operated by an educational service agency may be eligible for loan cancellation. School eligibility is determined by the Department of Education.

A supervisor, administrator, researcher, or curriculum specialist is not a teacher unless he or she primarily provides direct and personal educational services to students.

All Bureau of Indian Affairs (BIA) elementary and secondary schools qualify.

Special Education

Borrowers must be employed as a Full-time special education teacher of infants and toddlers from birth to age 2, children or youth from ages 3 through 21 with disabilities who require special education and related services because they have disabilities as defined in section 602(a)(1) of the Individuals with Disabilities Education Act.

Handicapped Education

Borrowers must be employed as a Full-time handicapped education teacher of children ages 3 through 21 who require special education and related services because they have disabilities as defined in Section 602(3) of the Individuals with Disabilities Education Act.

Fields of Expertise

Borrowers must be employed Full-time teaching in mathematics, science, foreign languages, bilingual education or any other field of expertise where the state education agency determines that there is a shortage of qualified teachers and the majority of classes taught are in the borrower's field of expertise.

Head Start Pre-School Program

Borrowers must be employed as a Full-time staff member (person regularly employed in a full-time professional capacity to carry out the educational part) of the Head Start pre-school program under section 222(a)(1) of the Economic Opportunity Act of 1964-5; (2) who serves for a complete academic year or its equivalent; and whose salary does not exceed the salary of a comparable employee working in the local school district.

As of Aug. 14, 2008, this benefit was expanded to include full-time staff members in a pre-kindergarten or childcare program that is licensed or regulated by the state and is operated for a complete academic year.

The cancellation rates for this position are as follows:

• 1st - 6th year: 15% each year
• 7th Year: 10%

Tribal College or University

Effective Aug. 14, 2008, a full-time faculty member of a tribal college or university may cancel a Perkins loan up to 100 percent over a five-year period.

Librarian at an Elementary or Secondary School or Public Library

Borrowers must be employed as a full-time librarian with a master’s degree in Library Science employed by an elementary school or secondary school that qualifies for Title 1 funding, or in a public library that serves a geographic area that includes one or more Title 1 schools. Employment must be during the period that includes August 14, 2008 or thereafter.

Speech-Language Pathologist

Borrowers must be employed as a full-time Speech Language pathologist with a master's degree and work exclusively with an elementary school or secondary school that qualifies for Title 1 funding.

Other

Child or Family Service Agency

To qualify for cancellation, the borrower must be providing services directly and exclusively to high-risk children from low-income communities and to the families of these children, or supervising the provision of such services. Any services provided to the children's families must be secondary to the services provided to the children.

• High-risk children are defined as individuals under the age of 21 who are low-income or at risk of abuse or neglect; have been abused or neglected; have serious emotional, mental, or behavioral disturbances; reside in placements outside their homes; or are involved in the juvenile justice system.
• Low-income communities are communities in which there is a high concentration of children eligible to be counted under Title I rules.

The types of services a borrower may provide to qualify for a child or family service cancellation include child care and child development services; health, mental health, and psychological services; and social services. The Department has determined that an elementary or secondary school system, a hospital, or an institution of higher education is not an eligible employing agency.

Early Intervention Services

A school must cancel up to 100% of a Perkins Loan if the borrower has served as a full-time staff member in a Head Start program, or as a full-time staff member of a pre-kindergarten or child care program that is licensed or regulated by the state. In order to qualify for cancellation, the early education program in which the borrower serves must operate for a complete academic year or its equivalent.

• Head Start is a preschool program carried out under the Head Start Act
• A pre-kindergarten program is a state-funded program that serves children from birth through age six and addresses the children's cognitive (including language, early literacy, and early mathematics), social, emotional, and physical development.
• A child care program is a program that is licensed or regulated by the state and provides child care services for fewer than 24 hours per day per child, unless care in excess of 24 consecutive hours is needed due to the nature of the parents' work.
• A full-time staff member is someone who is regularly employed in a full-time professional capacity to carry out the educational part of the early education program.

Law Enforcement/Federal Public Defender

A borrower must be employed in full-time service as a sworn law enforcement officer or corrections officer or a person whose principal responsibilities are unique to the criminal justice system in a local, State, or Federal law enforcement or correction agency. Eligible agencies are publicly funded units where the principal activities pertain to crime prevention, control, or reduction, or the enforcement of the criminal law. The activities include, but are not limited to, police efforts to prevent, control or reduce crime or to apprehend criminals; activities of the courts having criminal jurisdiction and related agencies; activities of corrections, probation or parole authorities; and problems relating to the prevention, control or reduction of juvenile delinquency or narcotic addiction.

As of Aug.14, 2008, a full-time attorney employed in Federal Public or Community Defender Organizations, established in accordance with Section 3006A(g)(2) of Title 18.USC, may be eligible for loan cancellation. Eligible service begins on or after Aug. 14, 2008.

Firefighter Cancellation

Perkins Loans made on or after Aug. 14, 2008, as eligible for 100 percent cancellation over a five year period for service as a firefighter. A borrower must serve full-time as a firefighter or in a local, state, federal fire department or fire district, to extinguish destructive fires, or provide firefighting related services such as:

• Providing community disaster support
• Providing emergency medical services as a first responder
• Conducting search and rescue
• Providing hazardous materials mitigation

Peace Corps & AmeriCorps*VISTA

For both of the below cancellation types, the Perkins loan can be cancelled at the following rates at the end of each completed year of service:

• 15% of the original loan amount – plus any interest accrued during the year -- for the 1st and 2nd years of service.
• 20% of the original loan amount-- plus any interest accrued during the year for the 3rd and 4th year of service.

Peace Corps

A borrower must be providing service comparable to Peace Corps and meet ALL of the following requirements:

• Borrower's organization is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1954.
• Borrower's service is to low-income persons and their communities to assist them in eliminating poverty and poverty-related humans, social, and environmental conditions.
• Borrower's compensation must not exceed the federal minimum wage.
• Borrower cannot give religious instruction, conduct worship service, engage in religious proselytizing, or engage in religious fund-raising.
• Borrower has agreed to serve on a full-time basis for at least one year.

AmeriCorps*VISTA

• Volunteer service must be with AmeriCorps*VISTA.
• Only qualify if volunteer elects NOT to receive a National Service Education Service Award for his/her volunteer service.
• Must provide appropriate documentation showing that the volunteer has declined AmeriCorps National Service Education Award.

Military Service

If the borrower has received orders to report to an area of hostility or area of imminent danger and meets the following qualifications, the borrower is entitled to cancel a portion of his Perkins loan as indicated below. The Military Form should be completed and submitted at the end of 12 consecutive months of service. The borrower must:

• Be a member of the U.S. Armed Forces, the National Guard, or the Reserves.
• Be receiving special pay under section 310 of Title 37 of the U.S. Code.
• Be serving in an area of hostility or area of imminent danger for 12 consecutive months.
  • Any portion of a month the borrower is on active duty in a qualifying area is considered a full month and counts toward cancellation.
  • The borrower's commanding officer must certify their dates of service in a designated "area of hostility" or an "area of imminent danger."
    • Areas of hostility are those placed on the Dept. of Defense Hostile Fire/Imminent Danger pay areas list.
    • An "area of hostility" should not be confused with military service that qualifies for other forms of special pay, such as flight pay or service overseas in areas where additional pay is given for a dependent's living allowance.

Up to 100 percent of the loan may be cancelled at the following rates: 

• 15 percent for the first and second years
• 20 percent for the third and fourth years
• 30 percent for the fifth year

Nurse or Medical Technician

A borrower must have full-time employment as a nurse or medical technician who provides health care services directly to patients to qualify. 

• A medical technician must be an allied health professional (working in a field 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 compliments the work of physicians and other specialists in the health care system.
• A nurse is a licensed practical nurse, a registered nurse, or other individual who is licensed by the appropriate state agency to provide nursing services.

Deferments without Cancellation Provisions

The following deferments are available under the Perkins loan program and do not have cancellation provisions.

Student Deferment

• Enrolled at least half-time
• Form must be submitted at the beginning of each period of enrollment
• Enrollment verification provided by the Registrar's office of the borrower's school is acceptable
• Deferment is automatic only for students enrolled at UT-Austin unless the borrower's loan is past due
• Borrowers in medical internship or residency program are NOT eligible except for borrowers in a dentistry program

Economic Hardship

A borrower is entitled to an economic hardship deferment for periods of up to one year at a time, not to exceed three years cumulatively, if the borrower provides the school with satisfactory documentation showing one of the following:

• The borrower has been granted an economic hardship deferment for either a Stafford or PLUS Loan for the same period of time for which the Perkins Loan deferment has been requested;
• The borrower is receiving federal or state general public assistance, such as Temporary Assistance to Needy Families, Supplemental Security Income, or Supplemental Nutrition Assistance Program (SNAP);
• The borrower is working full-time* and is earning a total monthly gross income that does not exceed (1) the monthly earnings of someone earning the minimum wage, or (2) 150% of the poverty line** for the borrower's family size;
  • *A borrower is considered to be working full-time if he or she is expected to be employed for at least three consecutive months for at least 30 hours per week.
  • **The poverty guidelines are published annually by the Department of Health and Human Services. If a borrower is not a resident of a state identified in the poverty guidelines, the poverty guideline to be used for the borrower is the poverty guideline (for the relevant family size) used for the 48 contiguous states.
• The borrower is serving as a volunteer in the Peace Corps. Schools may grant deferments for Peace Corps service for periods longer than one year at a time, but these periods must not collectively exceed three years.
  • To qualify for a subsequent period of deferment that begins less than one year after the end of the deferment, the borrower must submit a copy of his or her federal income tax return if the borrower filed a tax return within the eight months preceding the date the deferment is requested.

Unemployment

• Defer for up to 1 year at a time
• Borrower must reapply each year (up to  years)
• Should be able to provide proof borrower is receiving unemployment benefits or show evidence of a job search (i.e. letters of Interest, letters of rejection, or registration with an employment agency)

Graduate Fellowship

A borrower may defer repayment if he or she is enrolled and in attendance as a regular student in a course of study that is part of a graduate fellowship program approved by the Department of Education, including graduate or postgraduate fellowship-supported study (such as a Fulbright grant) outside the United States. Enrollment must be full-time (enrollment verification provided by the school is acceptable). 

The deferment form must be submitted at the beginning of the program and once a year thereafter until completed. To qualify for a deferment for study in a graduate fellowship program, a borrower must provide The University of Texas at Austin with:

• The Student Deferment Request form, once each year during the fellowship period and
• A statement from an authorized official of the borrower's fellowship program certifying—
  • That the borrower holds at least a baccalaureate degree conferred by an institution of higher education;
  • That the borrower has been accepted or recommended by an institution of higher education for acceptance on a full-time basis into an eligible graduate fellowship program; and
  • The borrower's anticipated completion date in the program.

For purposes of the Student Deferment, an eligible graduate fellowship program is a fellowship program that—

• Provides sufficient financial support to graduate fellows to allow for full-time study for at least six months;
• Requires a written statement from each applicant explaining the applicant's objectives before the award of that financial support;
• Requires a graduate fellow to submit periodic reports, projects, or evidence of the fellow's progress; and
• In the case of a course of study at a foreign university, accepts the course of study for completion of the fellowship program.

Rehabilitation Training

A borrower may defer repayment if he or she is enrolled in a course of study that is part of a Department-approved rehabilitation training program for disabled individuals. To receive this deferment, the borrower must provide the school with certification that:

• The borrower is receiving, or is scheduled to receive, rehabilitation training from the agency;
• The agency is licensed, approved, certified, or otherwise recognized by a state agency responsible for programs in vocational rehabilitation, drug abuse treatment, mental health services, or alcohol abuse treatment; or by the Department of Veterans Affairs; and
• The agency provides or will provide the borrower rehabilitation services under a written plan that (l) is individualized to meet the borrower's needs (2) specifies the date that services will end and (3) is structured in a way that requires substantial commitment from the borrower
  • A substantial commitment from the borrower is a commitment of time and effort that would normally prevent the borrower from holding a full-time job either because of the number of hours that must be devoted to rehabilitation or because of the nature of the rehabilitation.

Military Deferment

Military Service Deferment

A borrower who is serving on active duty in the U.S. Armed Forces or performing qualifying National Guard duty may defer repayment (principal and interest) on a Perkins Loan if the duty is in connection with a war, military operation, or national emergency.

The deferment is extended 180 days for qualifying periods of service that include October 1, 2007, or that begin on or after that date. This additional period is available each time a borrower is demobilized at the conclusion of qualifying service. This additional 180-day deferment may not be granted without documentation supporting the borrower's claim of end-of-military-service date. A borrower may not be reimbursed for any payments made by or on behalf of a borrower during a period for which the borrower qualified for a deferment.

13-Month Post-Active Duty Deferment

Borrowers who are members of National Guard or Armed Forces Reserve, and members of the Armed Forces who are in retired status, are eligible for a 13-month period of deferment on repayment of their Perkins Loans following the completion of their active duty military service if they were enrolled in a postsecondary school at the time of, or within six months prior to, their activation.

A borrower returning from active duty who is in a grace period is not required to waive the grace period to use the 13-month post-active duty student deferment. If the borrower reenrolls in post-secondary school (at least half time) prior to the expiration of the 13-month period, the deferment ends on the date the student reenrolls.

Unlike the military service deferment described above, students receiving the active duty student deferment need not be activated in connection with a war, national emergency, or other military operation.

For purposes of the post-active duty student deferment, "active duty" has the same meaning as in Section lOl(d)(l) of Title 10, United States Code, but does not include active duty for training or attendance at a service school/ academy.

National Guard members are eligible if activated by the state under federal approval or if activated by the state under state statue or policy.

Cancer Treatment

Qualified borrowers may receive a deferment on their qualifying loans while they are receiving cancer treatment, and for the six months following the conclusion of their treatment. The deferment has no fixed time limit.

A borrower may qualify for the deferment of their loans which entered repayment on or before September 28, 2018. Loans which were made before September 28, 2018, but which were not in repayment on that date because the borrower was in an in-grace or in-school status are not eligible for the deferment and will not become eligible when they do enter repayment. In addition, a deferment cannot be granted for a period of treatment before September 28, 2018.

Perkins Loan borrowers will receive a six-month post-deferment grace period before payments resume. This grace period is in addition to the six-month period of deferment that the borrower will receive after cancer treatment ceases.

Deferments for Loans Made on or before July 1, 1993

Some deferments are only eligible for loans made prior to July 1, 1993 as indicated below. If more information is needed on these deferments, please contact our office.

• Military Deferment
• Peace Corps
• Internship/Residency Program
• U.S. Public Health Service
• National Oceanic & Atmospheric Administration (NOAA)
• Temporary Total Disability
• Pregnancy, Care of Newborn or Newly Adopted Child
• Mother of Preschooler or Returning to Work (loans from1987-1993)
• Hardship

Forbearance

Forbearance is a temporary postponement of monthly payments for up to a year at a time, not to exceed three years.

• To apply for forbearance, the borrower must complete a Forbearance Request Form at the beginning of the benefit period.
  • Failure to complete and submit this request before the account goes into billing may result in late fees which must be paid before the forbearance can be processed. Late fees are calculated at a rate of $8 per month.
• To qualify for forbearance, a borrower must fall within one of the following categories:
  • Financial hardship or poor health.
  • Service in military, AmeriCorps, military mobilization or other national emergency.
• Interest will continue to accrue monthly on loan in forbearance.
  • A borrower may pay interest during forbearance, but this is not required.
  • Unpaid accrued interest must be paid at the end of the forbearance period.

Consolidation

Consolidation is when a borrower refinances all of their federal student loans into a single loan. The consolidated loan will have a new interest rate, payment terms and monthly payments. Consolidation can make repayment of student loans easier since there will be a single lender, but some benefits may be lost after consolidation. Borrowers should discuss their options with their lenders before consolidating their loans. The following federal student loans are eligible for consolidation: 

• Federal Stafford loans
• Federal Direct loans
• Federal PLUS loans
• Federal SLS loans
• Federal Perkins loans
• Health Professional Student loans (HPSL)
• Nursing School loans (NSL)

To apply for a consolidation, visit: https://studentaid.gov/manage-loans/consolidation 

Privacy Act Notice

The Privacy Act of 1974 (5 U.S.C. 552a) requires that the following notice be provided to you:

The authority for collecting the requested information from and about you is §451 et seq. of the Higher Education Act of 1965, as amended (20 U.S.C. 1087a et seq. ) and the authority for collecting and using your Social Security Number (SSN) is §484(a)(4) of the HEA (20 U.S.C. 10941(a)(4)). Participating in the Federal Perkins Loan (Perkins) Program and giving us your SSN are voluntary, but you must provide the requested information, including your SSN, to participate.

The principal purposes for collecting the information on this form, including your SSN, are to verify your identity, to determine your eligibility to receive a loan or a benefit on a loan (such as a deferment, forbearance, discharge, or cancellation) under the Perkins Program, to permit the servicing of your loan(s), and, if it becomes necessary, to locate you and to collect on your loan(s) if your loan(s) become delinquent in default. We also use your SSN as an account identifier and to permit you to access your account information electronically.

The information in your file may be disclosed to third parties as authorized under routine uses in the appropriate systems of records. The routine uses of this information include its disclosure to federal, state, or local agencies, to other federal agencies under computer matching programs, to agencies that we authorize to assist us in administering our loan programs, to private parties such as relatives, present and former employers, business and personal associates, to credit bureau organizations, to educational institutions, and to contractors in order to verify your identity, to determine your eligibility to receive a loan or a benefit on a loan, to permit the servicing or collection of your loan(s), to counsel you in repayment efforts, to enforce the terms of the loan(s), to investigate possible fraud and to verify compliance with federal student financial aid program regulations, to locate you if you become delinquent in your loan payments or if you default, to provide default rate calculations, to provide financial aid history information, to assist program administrators with tracking refunds and cancellations, or to provide a standardized method for educational institutions efficiently to submit student enrollment status.

In the event of litigation, we may send records to the Department of Justice, a court, adjudicative body, counsel, party, or witness if the disclosure is relevant and necessary to the litigation. If this information, either alone or with other information, indicates a potential violation of law, we may send it to the appropriate authority for action. We may send information to members of Congress if you ask them to help you with federal student aid questions. In circumstances involving employment complaints, grievances, or disciplinary actions, we may disclose relevant records to adjudicate or investigate the issues. If provided for by a collective bargaining agreement, we may disclose records to a labor organization recognized under 5 U.S.C. Chapter 71. Disclosures may also be made to qualified researchers under Privacy Act safeguards.

Financial Privacy Act Notice

Under the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401-3421), the U.S. Department of Education will have access to financial records in your student loan file maintained by the lender in compliance with the administration of the Federal Perkins Loan Program.