Federal Perkins Loans are a type of need-based student loan that the government offers to undergraduate and graduate students with exceptional financial needs. You may be able to cancel (discharge) your Federal Perkins Loan in certain circumstances.
Let’s suppose, you may be eligible for cancellation of your Perkins Loan if you are a teacher and teach in a low-income school, The military may deny you benefits if you are serving in an area of hostilities or if you become permanently disabled. Your Perkins Loan may also be canceled if you join a school that closes while you are enrolled.
There are present instances where you may be qualified for a 100% cancellation of your Federal Perkins Loan. The only qualifying event is if you have been discharged from active duty in the armed forces and received a Certificate of Release or Discharge from Vibrant Duty.
Some of the causes your Federal Perkins Loan may be canceled include:
Designed to help students meet the cost of tuition and fees, the Federal Perkins Loan provides low-interest loans up to $5,000. You may qualify for a 100% cancellation of your Federal Perkins Loan if you meet certain criteria. If your enrollment is canceled by the school, you should contact the Perkins Loan Origination Center (OLOC) to find out if there is a cancellation fee.
Get your loan servicer to examine your options if you think you may be eligible for cancellation of your Perkins Loan. If you qualify for cancellation, they will be able to provide you with more information.