Deferments & Cancellations
Perkins Loans are eligible for deferments and cancellations depending on the terms of your promissory notes. Deferments may be granted if you return to school to seek a degree and are enrolled at least half time. You may download a deferment form » to take to your current school's Registrar's office for completion. Please read all instructions carefully. If the deferment form is filled out incorrectly, it will be returned to you causing a delay in the processing of the deferment. The billing process cannot be stopped until the appropriate official certification has been received.
Certain types of employment qualify the Perkins Loan for deferment and cancellation. Depending on the terms of your promissory note, payments can be deferred for up to 12 months at a time. Please note that certain criteria must be met. For detailed information go the ECSI website or contact ECSI by phone toll free at 1-888-549-3274. Common types of employment that qualify are:
- Teachers in designated low-income schools
- Teachers of the handicapped
- Teachers of math, science, and bi-lingual languages
- Staff members in a qualified pre-kindergarten or child care program if qualifying service includes or begins on or after August 14, 2008
- Law enforcement officials
- Attorneys employed in a defender organization as established with section 3006(g)(2) of title 18, U.S.C. if qualifying service includes or begins on or after August 14, 2008
- Those working with high-risk children from low-income communities
- Some volunteer programs
- Nurses and Medical Technicians. You must be state licensed to qualify.
- Firefighters for a local, State or Federal fire department or district if qualifying service includes or begins on or after August 14, 2008
- Faculty of a Tribal College or University as defined in section 316 of title 20, U.S.C. if qualifying service includes or begins on or after August 14, 2008
- Librarian if qualifying service includes or begins on or after August 14, 2008. You must have a master’s degree in library science and work in an elementary or secondary school that is eligible for assistance under part A of the title I elementary and Secondary Education Act of 1965, or work in a public library that serves a geographic area that contains one or more of such schools.
- Speech Pathologist. You must have a master’s degree and work exclusively with schools eligible for assistance under part A of the title I elementary and Secondary Education Act of 1965.
A percentage of the loan will be canceled after each 12-month period of service is verified. Remember that a full 12 months of service must be completed to have the cancellation approved. The rate of cancellation is 15% each the first and second year of approved service, 20% each the third and fourth year, and 30% the fifth year. Refer to your Promissory Note and contact the Perkins office for other details. You may download the appropriate forms from the ECSI website » or contact ECSI.
Military Deferment: Beginning July 1, 2006 Federal Perkins regulations changed to allow Military Deferments for borrowers with loan advances after July 1, 2001. This deferment applies only to borrowers serving on active duty and qualifying National Guard duty during a war, or other military operation, or national emergency.
In addition, if your qualifying National Guard active duty service includes October 1, 2007 or begins on or after that date, the 180-day period following the demobilization date for your service may be deferred. Also, as of October 1, 2007, if you are serving on active duty military service on that date, or begin serving on or after that date for at least a 30-day period, you may defer making scheduled payments, and will not be liable for any interest that may accrue, for up to 13 months following the conclusion of your service and initial grace period if you are a member of the National Guard or other reserve component of the United States Armed Forces, or a member of such forces in retired status.
Military Service Cancelation: Schools must cancel up to 50% of a Perkins Loan if the borrower has served a period of full-time active duty in the Armed Forces (that is, the U.S. Army, Navy, Air Force, Marine Corps or Coast Guard), the National Guard or the Reserves. The service must be in an area of hostilities or an area of imminent danger that qualifies for special pay under Section 310 of Title 37 of the U.S. Code. The cancellation rate for every complete year of qualifying service is 12.5% of the original principal loan amount. Please access the cancelation form by using the above “deferment form” link and then scrolling down to “ECSI Forms, Cancellation.”
For qualifying full-time Military Service in the Armed Forces in an area of hostility if that service includes or begins on or after August 14, 2008 you are entitled to have up to 100% of the original principal of your Perkins Loan cancelled if the area of hostility qualifies for special pay under Section 310 of Title 37 of the U.S. Code. Again, please access the cancellation form by using the above “deferment form” link and then scrolling down to “ECSI Forms, Cancellation.”
For more information about these Military Deferments and Cancelations please go to the ECSI website at ecsi.net/militarydef or contact ECSI by phone toll free at 1-888-549-3274.