For the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they're looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans.
Kat Tretina Personal Finance WriterFor the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they're looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans.
Written By Kat Tretina Personal Finance WriterFor the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they're looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans.
Kat Tretina Personal Finance WriterFor the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they're looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans.
Personal Finance Writer Caroline Basile Mortgages and Student Loans Deputy EditorCaroline Basile is Forbes Advisor’s student loans and mortgages deputy editor. With experience in both the mortgage industry and as a journalist, she was previously an editor with HousingWire, where she produced daily news and feature stories. She ho.
Caroline Basile Mortgages and Student Loans Deputy EditorCaroline Basile is Forbes Advisor’s student loans and mortgages deputy editor. With experience in both the mortgage industry and as a journalist, she was previously an editor with HousingWire, where she produced daily news and feature stories. She ho.
Caroline Basile Mortgages and Student Loans Deputy EditorCaroline Basile is Forbes Advisor’s student loans and mortgages deputy editor. With experience in both the mortgage industry and as a journalist, she was previously an editor with HousingWire, where she produced daily news and feature stories. She ho.
Caroline Basile Mortgages and Student Loans Deputy EditorCaroline Basile is Forbes Advisor’s student loans and mortgages deputy editor. With experience in both the mortgage industry and as a journalist, she was previously an editor with HousingWire, where she produced daily news and feature stories. She ho.
| Mortgages and Student Loans Deputy Editor
Updated: Aug 28, 2023, 10:44am
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Although the Perkins student loan program has ended, the Perkins loan forgiveness programs haven’t. If you have a Perkins loan, you may be eligible for forgiveness, or if you consolidate your loans, you may qualify for other federal forgiveness options.
The Federal Student Aid Data Center reported that 1.2 million people still have outstanding Perkins loans, owing a combined $3.7 million as of the end of March 2023. For these borrowers, loan relief is still available.
The Perkins loan program was designed for students with substantial financial need. These federal loans were subsidized, so the government covered the accrued interest while the borrower was in school.
The government discontinued the Perkins loan program in 2017; the last Perkins loans were issued in 2018.
Those with outstanding Perkins loans may be eligible for forgiveness or cancellation. There are three main programs specifically designed for Perkins borrowers:
Under the Perkins loan cancellation program, eligible teachers can qualify for cancellation of up to 100% of their outstanding Perkins loans. To qualify, you must teach full-time in a public or nonprofit elementary or secondary school and meet one of the following requirements:
A percentage of your Perkins loan balance is canceled for each year of service, and the cancellation amount also covers the interest accrued during each service year. Cumulatively, by your fifth year of service, 100% of your Perkins loan would be canceled.
Besides the Perkins loan cancellation program for teachers, there’s a loan forgiveness option for first responders, public service workers and some volunteers.
The loan forgiveness amount you’re eligible for and the required service length varies by profession or volunteer role. Still, only some individuals will qualify for 100% forgiveness of their outstanding Perkins loans.
Full-time nurses or medical technicians Up to 100% for five years of service Full-time firefighters (only for those who began service on or after August 14, 2008) Up to 100% for five years of service Full-time qualified providers of early intervention for individuals with disabilities Up to 100% for five years of serviceFull-time faculty members at tribal colleges or universities (only for those who began service on or after August 14, 2008)
Up to 100% for five years of serviceFull-time speech pathologists with a master’s degree working in a Title I-eligible elementary or secondary school (only for those who began service on or after August 14, 2008)
Up to 100% for five years of serviceLibrarians with a master’s degree working in a Title I-eligible elementary or secondary school or in a public library serving Title I-eligible schools (only for those who began service on or after August 14, 2008)
Up to 100% for five years of service Full-time law enforcement or corrections officers Up to 100% for five years of serviceFull-time attorneys employed as federal public or community defenders (only for those who began service on or after August 14, 2008)
Up to 100% for five years of serviceFull-time employees of a public or private nonprofit child- or family-services agency providing services to low-income, high-risk children and their families
Up to 100% for five years of service Full-time staff members in education in a Head Start program15% for the first through sixth years of service
10% for the seventh year of service (100% total maximum)
Full-time staff members in the education component of a licensed or regulated pre-kindergarten or child care program (only for those who began service on or after August 14, 2008)
15% for the first through sixth years of service
10% for the seventh year of service (100% total maximum)
Military service in the U.S. armed forces in a designated hostile fire or imminent danger pay area (active duty service must include or begin on or after August 14, 2008)
Up to 100% for five years of service AmeriCorps VISTA or Peace Corps volunteers15% for first year of service
15% for second year of service
20% for third year of service
20% for fourth year of service (70% total maximum)
Under certain circumstances, you can qualify for a discharge of your Perkins loans. Up to 100% of your loans may be discharged in the following scenarios:
To apply for Perkins loan forgiveness or cancellation, you must contact the college or university that issued the loan. In some cases, the school acts as the loan servicer or it may partner with a third-party loan servicer.
For example, Penn State University, New York University and the University of Mississippi collect payments on Perkins loans they issued. Other schools may contract servicers like UAS Connect, Educational Computer Systems, Inc. (ECSI) or the New Mexico Educational Assistance Foundation to collect payments.
The school or the loan servicer can tell you which forms and documents you need to submit for the type of forgiveness you’re pursuing.
Borrowers that aren’t eligible for Perkins loan forgiveness or cancellation programs may qualify for loan forgiveness through two other federal loan forgiveness programs:
Income-driven repayment (IDR) plans base your payments on a percentage of your discretionary income with a different loan term than the original term. The remainder is forgiven if you still have a balance at the end of the IDR loan term.
Perkins loans aren’t eligible for IDR plans. But if you consolidate your debt with a direct consolidation loan, you’ll get access to other payment plans, including IDR plans. Once the loan is consolidated, you can enroll in an IDR plan and begin working toward forgiveness.
Under the Public Service Loan Forgiveness rules, federal loan borrowers may qualify for loan forgiveness if employed full-time by a nonprofit organization or government office for 10 years or more and make 120 qualifying monthly payments under an IDR plan.
As with IDR plans, Perkins loans aren’t eligible for PSLF. But if you consolidate with a direct consolidation loan, you can become eligible for PSLF. If you enroll in an IDR plan, you can work toward meeting the requirements for PSLF and qualify for loan forgiveness of up to 100% of your remaining balance.
However, keep in mind that consolidating your loans to pursue PSLF will cause you to lose eligibility for Perkins loan cancellation, so make sure you aren’t eligible for that forgiveness option first.
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Personal Finance WriterFor the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they're looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans, and she holds certifications in student loan and financial education counseling.
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