For employment as a full-time employee of a public or private nonprofit child or family service agency, you may be eligible for partial cancellation of your Perkins Loan made on or after July 23, 1992, if you meet certain criteria.
- work full-time for an eligible public or nonprofit child or family service agency
- providing services directly and exclusively to high risk children
- work only with children from low-income communities
High-risk children are individuals under the age of 21 who are:
- either at risk of abuse or neglect,
- or have been abused or neglected,
- or have serious emotional, mental, or behavioral disturbances,
- or reside in placements outside their homes,
- or are involved in the juvenile justice system
The borrower may also provide services to adult members of the families of the children for whom services are provided. The services provided to adults must be secondary to the services provided to the high-risk children.
NOTE: An elementary or secondary school system or a hospital is not an eligible employing agency.
Low Income Community
A low income community is defined as a community in which there is a high concentration of children eligible to be counted under Title I of the Elementary and Secondary Education Act of 1965, as amended.
Cancellation Rates for Child or Family Services
- first and second years; 15% of the original principal loan amount, plus the interest that accrued during the year.
- third and fourth years; 20% of the original principal loan amount, plus the interest that accrued during the year.
- fifth year; 30% of the original principal loan amount, plus any interest that accrued during the year.