A Perkins Loan is a federal student loan, made by the recipient's school, for undergraduate and graduate students who demonstrate financial need. Perkins Loans are no longer available as of 2018 but there are options for borrowers who still have Perkins Loans!
Discharge of a Perkins loan is based on your employment history and time spent at that specific employer, similar to the PSLF program. There a few types of employment that count for Perkins Loan Cancellation so let’s start with teaching.
If you teach or have taught full-time in a public or private school, you are eligible for a certain amount of your Perkins Loan to be discharged each year. The breakdown for this is as follows:
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15% canceled per year for the first and second years of service
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20% canceled for the third and fourth years
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30% canceled for the fifth year
Unlike Teacher Loan Forgiveness, guidance counselors and school librarians do qualify for this program but administrators, researchers, and curriculum specialists do not.
Some other examples of qualifying employment or volunteer work that counts towards Perkins Loan Discharge can be found below:
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Early childhood education provider
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Employee at a child or family services agency
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Faculty member at a tribal college or university
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Firefighter
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Law enforcement officer
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Librarian with master’s degree at Title I school
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Military service
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Nurse or medical technician
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Professional provider of early intervention (disability) services
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Public defender
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Speech pathologist with master’s degree at Title I school
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Volunteer service (AmeriCorps VISTA or Peace Corps)
These positions follow the same discharge criteria as for teachers (15% for the first and second years, 20% for the third and fourth years, and 30% for the fifth year). If you are interested in Perkins Loan Discharge, the application for cancellation or discharge of a Perkins Loan must be made to the school that made the loan or to the school’s Perkins Loan servicer. Please visit the Federal Student Aid's site for further information.