Perkins Loan Discharge

A discharge releases you from all obligations to repay the loan and in some cases you may qualify for a full or partial Federal Perkins loan discharge. Your loan however, cannot be discharged because you didn't find a job after completing your program, didn't like the program you attended or didn't complete the program. Of course, if you were unable to complete the program for a valid reason such as your school closed or terminated your program, you would then be eligible.

In the case of permanent disability, and you're unable to work and earn money, your loan can be discharged. If you are determined by a physician to be totally and permanently disabled your loan will be conditionally discharged up to three years. During this conditional period you do not have to make payments on your Federal Perkins Loan. At the end of the three year conditional period your loan can be permanently discharged providing the following conditions are met:

  • your earnings from employment cannot exceed the poverty line amount for a family of two.
  • you cannot receive any additional loans under the FFEL, Direct or Perkins loan programs
  • a doctor determines you to be totally and permanently disabled

During your conditional period you must maintain this set of conditions or you must resume payments on your Federal Perkins loans.

Below is a summary of eligible Federal Perkins Loan cancellation conditions and the amount of the loan that can be forgiven. This is just a guideline. Be sure and check with the Financial Aid office of your school for further details.

Condition Amount Forgiven
Borrower's total and permanent disability or death. 100%
Full-time teacher in a designated elementary or secondary school serving students from low-income families up to 100%
Full-time special education teacher (includes teaching children with disabilities in a public or other nonprofit elementary or secondary school). up to 100%
Full-time qualified professional provider of early intervention services for the disabled. up to 100%
Full-time teacher of math, science, foreign languages, bilingual education, or other fields designated as teacher shortage areas. up to 100%
Full-time employee of a public or nonprofit child- or family-services agency providing services to high-risk children and their families from low-income communities. up to 100%
Full-time nurse or medical technician up to 100%
Full-time law enforcement or corrections officer. up to 100%
Full-time staff member in the education component of a Head Start Program. up to 100%
Vista or Peace Corps volunteer up to 70%
Service in the U.S. Armed Forces up to 50% in areas of hostility or imminent danger.
Bankruptcy (in rare cases) up to 100%
Closed school (before student could complete program of study) applies to loans received on or after January 1, 1986. 100%

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