How to Cancel a Perkins Loan

A Perkins Loan is a form of federal financial aid for college students. It is need-based, which means it goes to students with significant financial challenges. The loan is also given at a lower interest rate than most other similar loans. It sometimes happens that a student who applies for and receives a Perkins Loan no longer needs it because she is awarded other scholarships or grants. Even after graduation you can still cancel a Perkins Loan by working as a teacher or providing other in-demand public services.

Instructions

    • 1

      Return the check. If the Perkins Loan check is delivered directly to you and not to your school, you can cancel the loan by returning the check to the sender.

    • 2

      Notify your school in writing. If the check is delivered to your school (or funds are sent electronically) you must notify your school in writing within 14 days of being notified by your school of their receipt of the Perkins Loan funds, or by the first day of your payment period (which you can identify by asking your school).

    • 3

      Get a discharge for public service. You will be eligible for forgiveness (cancellation) of up to 100 percent of your Perkins Loan if you work as a full-time teacher in a public or nonprofit elementary or secondary school system serving student from low-income families or with disabilities, or in a subject area designated by the state to suffer from a shortage of qualified teachers. You can also have some or all of your loan canceled by working as a nurse, corrections officer or Peace Corps volunteer, or by serving in the armed forces in an area of hostility.

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