Deferments/Cancellations
Deferments
A deferment is defined as "a temporary suspension of payments". Payments on Federal Perkins and University Student Loans may be deferred for a variety of reasons. During a deferment period, payments are not necessary since principal and sometimes interest does not accrue. The available deferments vary depending on the type of loan. If you feel that you may be eligible for a deferment, it is your responsibility to apply with our office.
Cancellations
The cancellation (discharge) of your student loan(s) is possible under certain circumstances and if granted, releases you from your obligation to repay all or a specified portion of your student loan(s). Most cancellations discharge your student loan(s) over a period of five (5) years. Cancellation rates vary depending on the type of loan.
| Cancellation Type | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Low Income Teacher | 15 % | 15 % | 20 % | 20 % | 30 % |
| Handicapped Teacher | 15 % | 15 % | 20 % | 20 % | 30 % |
| Teacher of Special Education | 15 % | 15 % | 20 % | 20 % | 30 % |
| Math, Science, or Language Teacher | 15 % | 15 % | 20 % | 20 % | 30 % |
| Law Enforcement/ Corrections Officer | 15 % | 15 % | 20 % | 20 % | 30 % |
| Child or Family Service Agency | 15 % | 15 % | 20 % | 20 % | 30 % |
| Nurse/Medical Technician | 15 % | 15 % | 20 % | 20 % | 30 % |
| Military | 15 % | 15 % | 20 % | 20 % | 30 % |
| Pre-Kindergarten/Child Care | 15 % | 15 % | 20 % | 20 % | 30 % |
| Lawyer in Public Defender Organization | 15 % | 15 % | 20 % | 20 % | 30 % |
| Fire Fighter | 15 % | 15 % | 20 % | 20 % | 30 % |
| Faculty of Tribal College/University | 15 % | 15 % | 20 % | 20 % | 30 % |
| Librarian at Low-Income School | 15 % | 15 % | 20 % | 20 % | 30 % |
| Speech Pathologist at Low-Income School | 15 % | 15 % | 20 % | 20 % | 30 % |
| Early Intervention Service Provider | 15 % | 15 % | 20 % | 20 % | 30 % |
| Peace Corps | 15 % | 15 % | 20 % | 20 % | N/A |
| Early Childhood Education | 15 % per year until paid-in-full (if eligible) | ||||
The majority of cancellations are discharged in twelve (12) month intervals while you are engaged in a specific service, or discharged in-full, in the event you pass away or become totally disabled.
Once our office receives your application for cancellation, your loan will be deferred until you complete a full twelve months of qualified service. Though your loan may be eligible for a cancellation, it is your responsibility to apply for each twelve (12) month period. It is essential to apply for cancellations on a timely basis. If you make payments during a period, then subsequently apply for cancellation that covers the same time period, the payments will not be reimbursed.
Student Loan Eligibility Guide
* Please refer to the promissory note for specific information concerning the following provisions:
Grace Periods:
Federal Perkins Loans/National Direct Student Loans: [9 Month Grace Period]
Primary Care Loans/Health Professions Student Loans: [1 Year Grace Period]
University Loans: [9 Month Grace Period]
Stafford Loans/GSLs: [Contact your lender for privileges.]
| Deferment Type | Maximum Limit | Eligible Loans |
|---|---|---|
| * Student (at least half-time) | No Limit | All Federal Perkins/Perkins/NDSL/UNIV/PCL/HPSL |
| * Military: Member of Armed Forces (for disbursements prior to July 1, 1993) | No Limit | NDSL01,02,03,05,95,06,96,07,08/HPSL |
| * Military: Active Duty During Wartime | No Limit | All Federal Perkins/Perkins/NDSL |
| * Military: Post Demobilization | No Limit | All Federal Perkins/Perkins/NDSL |
| * National Oceanic & Atmospheric Administration Corps | 3 Years | NDSL06,96,07,08 |
| * Peace Corps | 3 Years | NDSL01,02,03,05,95,06,96,07,08/HPSL |
| * U.S. Public Health Service Action Programs | 3 Years | NDSL03,05,95,06,96,07,08 |
| * Vista | 3 Years | NDSL01,02 |
| * Private/Non-Profit/Volunteer | 3 Years | NDSL03,05,95,06,96,07,08 |
| * Domestic Service Volunteer | 3 Years | NDSL05,95,06,96,07,08 |
| * Temporary Total Disability | 3 Years | NDSL01,02,03,05,95,06,96,07,08/UNIV/PCL/HPSL |
| * Internship/Professional Prac. | 2 Years | NDSL03,05,95,06,96,07,08 |
| * Advanced Professional Train. | No Limit | HPSL |
| * Pregnant/Adoption/Child Care | 6 Months | NDSL06,96,07,08 |
| * Mother of Preschool Child/Entering the Work Force | 1 Year | NDSL06,96,07,08 |
| * Forbearance (interest accrues) | 3 Years | All Federal Perkins/Perkins/NDSL/UNIV/PCL/HPSL |
| * Graduate Fellowship/Rehab. | 3 Years | All Federal Perkins/Perkins/NDSL |
| * Inability to Find Full-Time Employment | 3 Years | All Federal Perkins/Perkins/NDSL/UNIV |
| * Economic Hardship | 3 Years | All Federal Perkins/Perkins/NDSL/UNIV |
| * Engaged in Service Listed Under Cancellation Provisions | Unlimited | All Federal Perkins/Perkins/NDSL |
| Cancellation Type | Maximum Limit | Eligible Loans |
|---|---|---|
| * Peace Corps | 70 % | All Federal Perkins/Perkins/NDSL |
| * Teacher - Low income school | 100 % | All Federal Perkins/Perkins/NDSL |
| * HEADSTART Administrator | 100 % | All Federal Perkins/Perkins/NDSL |
| * Military - Area of Hostility | 100 % | All Federal Perkins/Perkins/NDSL |
| * Law Enforcement/Correction Officer | 100 % | All Federal Perkins/Perkins/NDSL |
| * Totally & Permanently Disabled | 100 % | All Federal Perkins/Perkins/NDSL/UNIV/HPSL |
| * Death | 100 % | All Federal Perkins/Perkins/NDSL/UNIV/HPSL |
| * Teacher - Special Education | 100 % | All Federal Perkins/Perkins/NDSL |
| * Teacher - Shortage of Teachers in Field of Education | 100 % | All Federal Perkins/Perkins/NDSL |
| * Full-Time Nurse or Medical Technician | 100 % | All Federal Perkins/Perkins/NDSL |
| * Full-Time Employee of Child or Family Service for High Risk Children | 100 % | All Federal Perkins/Perkins/NDSL |
| * Full-Time Staff in a Pre-Kindergarten or Child Care Program | 100 % | All Federal Perkins/Perkins/NDSL |
| * Full-Time Lawyer Employed by a Public Defender Organization | 100 % | All Federal Perkins/Perkins/NDSL |
| * Full-Time Fire Fighter | 100 % | All Federal Perkins/Perkins/NDSL |
| * Full-Time Faculty Member at a Tribal College or University | 100 % | All Federal Perkins/Perkins/NDSL |
| * Librarian with a Master's Degree in Library Science - Low-Income School or Public Library Serving Low-Income Schools | 100 % | All Federal Perkins/Perkins/NDSL |
| * Full-Time Speech Language Pathologist with a Master's Degree - Low-Income Children | 100 % | All Federal Perkins/Perkins/NDSL |
Deferment/Cancellation Eligibility Lookup
If you know the type of student loan(s) that you have received, select the loan type(s) and select 'Enter'. The information displayed will assist you in repaying your obligation while taking full advantage of the variety of provisions that student loans offer:
- available deferments
- available cancellations
- eligibility requirements
- forms/applications
- instructions on how to apply.
If you question your eligibility or cannot find a solution to meet your needs, please contact us for assistance.