Other Loan Cancellation Provisions
Depending on the loans that you have borrowed, your repayment plan and career choices, your federal student loans may qualify for cancellation under the following federal programs:
Perkins Loan Cancellation
If you have borrowed a Perkins Loan, it can be cancelled for completing work in various public service fields. If you are approved receive a cancellation, your loan payments are automatically deferred while you complete the needed service. Service that qualifies for cancellation includes:
- Full-time employment as a prosecuting attorney whose primary responsibilities are to prosecute criminal cases on behalf of public law enforcement agencies.
- Full-time attorneys employed in federal public defender organizations or community defender organizations.
- Teaching, military service, and Peace Corps or Americorps can also lead to cancellation.
To request a cancellation, you need to contact the school that issued you the loan (or the servicer to whom they’ve assigned your loan). To get the appropriate contact information, review your most recent Perkins Loan statement or go to the National Student Loan Data System and log in with your FAFSA PIN and personal information.
Cancellation for Income Driven Repayment Plans
If you repay your federal student loans under the Pay As You Earn, Income Based, or Income Contingent plans, and you have remaining loan debt after making the required numberof payments – 300 payments for IBR and ICR or 240 payments for PAYE, you can apply to have the remaining loan principal and interest cancelled. Any time spent in deferment or forbearance does not count toward the required number of payments, you must actually make 240/300 payments. This cancellation is not specific to any type of employment, so it is available to even those who do not qualify for Public Service Loan Forgiveness.
Under current law, the amount that is cancelled through this cancellation is taxable.
To request a cancellation, you need to contact the lender/servicer for your loan. To get the appropriate contact information, review your most recent statement(s) or go to the National Student Loan Data System and log in with your FAFSA PIN and personal information.
Total Disability Discharge
If you are unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months, you may apply for a total and permanent disability (TPD) discharge of your federal loans.
For additional information please go to www.DisabilityDischarge.com.