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Federal Stafford Loan and Federal Parent Plus Loan Discharge/Cancellation Summary
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Cancellation Conditions
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Amount Forgiven
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Notes
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Borrower's total and permanent disability 2 or death
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100%
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For a PLUS Loan, includes death but not disability of the student for whom the parents borrowed.
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Full-time teacher for five consecutive years in a designated elementary or secondary school serving students from low-income families
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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 FFEL Consolidation Loan programs. If so, only the portion of the consolidation loan used to repay Stafford Loans qualifies.
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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.)
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Bankruptcy (in rare cases)
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100%
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Cancellation is possible only if the bankruptcy court rules that repayment would cause undue hardship.
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Closed school (before student could complete program of study) or false loan certification
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100%
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For loans received on or after January 1, 1986 .
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School does not make required return of loan funds to the lender
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Up to the amount that the school was required to return.
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For loans received on or after January 1, 1986 .
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2 Beginning July 1, 2002 , a borrower who is determined to be totally and permanently disabled will have his or her loan placed in a conditional discharge period for three years from the date the borrower became totally and permanently disabled. During this conditional period, the borrower doesn't have to pay principal or interest. If the borrower continues to meet the total-and-permanent disability requirements during, and at the end of, the three-year conditional period, the borrower's obligation to repay the loan is canceled. If the borrower doesn't continue to meet the cancellation requirements, the borrower must resume payment. Total-and-permanent disability is defined as the inability to work and earn money because of an injury or illness that is expected to continue indefinitely or to result in death. More information on this discharge can be found in the promissory note and by contacting the loan holder.
Perkins Discharge/Cancellation Summary 1
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Cancellation Conditions
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Amount
Forgiven
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Notes
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Borrower's total and permanent disability 2 or death
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100%
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Service qualifies for deferment also.
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Full-time teacher in a designated elementary or secondary school serving students from low-income families
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Up to 100%
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Service qualifies for deferment also.
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Full-time special education teacher (includes teaching children with disabilities in a public or other nonprofit
elementary or secondary school)
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Up to 100%
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Service qualifies for deferment also.
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Full-time qualified professional provider of early intervention services for the disabled
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Up to 100%
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Service qualifies for deferment also.
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Full-time teacher of math, science, foreign languages, bilingual education, or other fields designated as teacher shortage areas
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Up to 100%
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Service qualifies for deferment also.
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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
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Up to 100%
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Service qualifies for deferment also.
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Full-time nurse or medical technician
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Up to 100%
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Service qualifies for deferment also.
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Full-time law enforcement or corrections officer
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Up to 100%
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Service qualifies for deferment also.
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Full-time staff member in the education component of a Head Start Program
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Up to 100%
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Service qualifies for deferment also.
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Vista or Peace Corps volunteer
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Up to 70%
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Service qualifies for deferment also.
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Service in the U.S. Armed Forces
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Up to 50% in areas of hostilities or imminent danger
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Service qualifies for deferment also.
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Bankruptcy (in rare cases)
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Up to 100%
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Cancellation is possible only if the bankruptcy court rules that repayment would cause undue hardship.
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Closed school (before student could complete program of study)
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100%
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For loans received on or after January 1, 1986 .
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1 As of October 7, 1998 , all Perkins Loan borrowers are eligible for all cancellation benefits regardless of when the loan was made or the terms of the borrower's promissory note. However, this benefit is not retroactive.
2 Beginning July 1, 2002 , a borrower who is determined to be totally and permanently disabled will have his or her loan placed in a conditional discharge period for three years from the date the borrower became totally and permanently disabled. During this conditional period, the borrower doesn't have to pay principal or interest. If the borrower continues to meet the total-and-permanent disability requirements during and at the end of the three-year conditional period, the borrower's obligation to repay the loan is canceled. If the borrower doesn't continue to meet the cancellation requirements, the borrower must resume payment. Total-and-permanent disability is defined as the inability to work and earn money because of an injury or illness that is expected to continue indefinitely or to result in death. For more information on qualifying for this discharge, review your promissory note and contact your loan holder.
More information on teaching service cancellation/deferment options can be found at www.studentaid.ed.gov . At the site, click on “Repaying,” then on “Cancellation and Deferment Options for Teachers.”
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