Perkins Loans Discharge
| Cancellation Conditions | Amount Forgiven | Notes |
| Borrower’s total and permanent disability or death | 100% | For a PLUS Loan, includes death but not disability of the student for whom the parents borrowed. |
| Full-time teacher for five consecutive years
in a designated elementary or secondary school serving students from low-income families |
Up to $5,000 of the aggregate loan amount that is outstanding after completion of the fifth year of teaching. A borrower might qualify for loan forgiveness under the Direct Consolidation and the FFEL Consolidation Loan programs. If so, only the portion of the consolidation loan used to repay Direct Stafford Loans or FFEL Stafford Loans qualifies. |
For Direct and FFEL Stafford Loans received on
or after October 1, 1998, by a borrower with no outstanding loan balance as of that date. At least one of the five consecutive years of teaching must occur after the 1997-98 academic year. (To find out whether your school is considered a low-income school, visit http://www.studentaid.ed.gov. Click on "Repaying," then click on "Cancellation and Deferment Options for Teachers." Or, call 1-800-4-FED-AID.) |
| Bankruptcy (in rare cases) | 100% | Cancellation is possible only if the bankruptcy court rules that repayment would cause undue hardship. |
| Closed school (before student could complete program of study) or false loan certification | 100% | For loans received on or after January 1, 1986. |
| School does not make required return of loan funds to the lender | Up to the amount that the school was required to return. |
For loans received on or after January 1, 1986. |
Source: studentaid.ed.gov.
Valid as of publishing. Check for updates.
