Omb No. 1845-0061 Form - Federal Perkins Loan Promissory Note (Page 3 of 4) in pdf

Terms and Conditions (cont.)

G. Military Cancellation - Upon making a properly documented written

request to the school, I am entitled to have up to 50 percent of the principal

CANCELLATIONS - Upon making a properly documented written

amount of this loan canceled for qualifying service performed after I receive

request to the School, I am entitled to have up to 100 percent of the original

the loan as: • a member of the Armed Forces of the United States in an area

principal loan amount of this loan canceled if I perform qualifying service in

of hostilities that qualifies for special pay under section 310 of Title 37 of

the areas listed in paragraphs A, B, C, D and E below. Qualifying service

the United States Code.

must be performed after I receive the loan.

Cancellation Rate - For each completed year of service under the Military

A. Teaching • a full-time teacher in a public or other nonprofit elementary

Cancellation provision, this loan will be canceled at the rate of 12½ percent

or secondary school, that has been designated by the Secretary in

of the original principal loan amount.

accordance with the provisions of section 465(a)(2) of the Act as a school

with a high concentration of students from low-income families. An official

H. Volunteer Service Cancellation - Upon making a properly documented

Directory of designated low-income schools is published annually by the

written request to the school, I am entitled to have up to 70 percent of the

Secretary; • a full-time special education teacher in a public or nonprofit

original principal loan amount of this loan canceled for qualifying service

elementary or secondary school system; or • a full-time teacher, in a public

performed after I received the loan as: • a volunteer under the Peace Corps

or other nonprofit elementary or secondary school system, who teaches

Act; • a volunteer under the Domestic Volunteer Service Act of 1973

mathematics, science, foreign languages, bilin gual education, or any other

(ACTION programs).

field of expertise that is determined by the State Department of Education to

have a shortage of qualified teachers in that State.

Cancellation Rate - For each completed year of service under the

Volunteer Service Cancellation provision, a portion of this loan will be

B. Early Intervention Services • a full-time qualified professional provider

canceled at the following rates:

of early intervention services in a public or other nonprofit program under

• 15 percent of the original principal loan amount for each of the first and

public supervision by a lead agency as authorized by section 632(5) of the

second 12-month periods of service; and • 20 percent of the original

Individuals with Disabilities Education Act. Early intervention services are

principal loan amount for each of the third and fourth 12- month periods of

provided to infants and toddlers with disabilities.

service.

C. Law Enforcement or Corrections Officer • a full-time law

DISCHARGES – My obligation to repay this loan may be partially or

enforcement officer for an eligible local, State or Federal law enforcement

totally discharged for the reasons specified in paragraphs A, B, C, and D

agency; or • a full-time corrections officer for an eligible local, State, or

below.

Federal corrections agency.

Death - In the event of my death, the School will discharge the total

D. Nurse or Medical Technician • a full-time nurse providing health care

amount owed on this loan.

services; or • a full-time medical technician providing health care services.

B. Total and Permanent Disability - If I become totally and permanently

E. Child or Family Service Agency • a full-time employee of an eligible

disabled after I receive this loan, the School will discharge the total amount

public or private non-profit child or family service agency who is providing

owed on this loan. If my disability discharge claim is approved by the

or supervising the provision of services to high -risk children who are from

School on or after July 1, 2002, this loan will be assigned to the United

low-income communities and the families of such children.

States Department of Education, which will discharge the total amount

owed on this loan if it determines that I am eligible for a total and

Cancellation Rates - For each completed year of service under paragraphs

permanent disability discharge.

A, B, C, D, and E a portion of this loan will be canceled at the following

rates:

C. School Closure - Under certain conditions, my total liability will be

• 15 percent of the original principal loan amount for each of the first and

discharged, including refunding any amounts I have already paid on the

second years; • 20 percent of the original principal loan amount for each of

loan, if I was unable to complete the program in which I was enrolled

the third year and fourth years; and • 30 percent of the original principal

because my school closed.

loan amount for the fifth year.

D. Bankruptcy - Under certain conditions, my loan may be discharged in

F. Head Start Cancellation - Upon making a properly documented written

bankruptcy. In order to discharge a loan in bankruptcy, I must prove undue

request to the school, I am entitled to have up to 100 percent of the original

hardship in an adversary proceeding before the bankruptcy court.

principal loan amount canceled for qualifying service performed after I

receive the loan as: • a full-time staff member in the educational component

Disclosure of Information

of a Head Start program which is operated for a period comparable to a full

school year and which pays a salary comparable to an employee of a local

educational agency.

STUDENT LOAN OMBUDSMAN

If I dispute the terms of my

Cancellation Rate - For each completed year of service under the Head

Federal Perkins Loan in writing to my School, and my School and I are

Start Cancellation provision, this loan will be canceled at the rate of 15

unable to resolve the dispute, I may seek the assistance of the Department

percent of the original principal loan amount.

of Education’s Student Loan Ombudsman. The Student Loan

Ombudsman will review and attempt to informally resolve the dispute.

Page 3 of 4

Omb No. 1845-0061 Form - Federal Perkins Loan Promissory Note Page 3

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