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Rensselaer Polytechnic Institute
Rensselaer Polytechnic Institute
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The Graduate School, Rensselaer Polytechnic Institute

Division of Finance

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Teacher Cancellation Benefits

Under the Federal Perkins Student Loan Program, borrowers performing teaching services might be eligible for cancellation credit that might be applied toward payments of Loan Principal and Accrued Interest.

A teacher is defined as one who is a Professional Employee of a school or school system working on a Full-Time Basis and is devoted to providing classroom instruction or related services in Support Of The Educational Program.

Cancellation benefits are offered for Teaching Service performed with Handicapped Students. The teaching service must be performed in classes where the majority of the students are handicapped and must be in an institution providing Elementary or Secondary Education as determined by state law. Cancellation benefits are offered to those Teachers Or Staff Members serving in public or non-profit private elementary or secondary schools having High Concentrations Of Students From Low-Income Families.

To be eligible for cancellation benefits, however, the school in which teaching service is performed must be included in the listing of schools having High concentrations of Students From Low-Income Families, which is published in the Federal Register. (The Federal Register is a document compiled each year by the federal government from Lists Submitted By The Individual States, of schools designated by those states to have a high concentration of students from low-income families. Each state, however, is given a quota of schools to be listed and not all schools having high concentrations of students from low-income families will be listed. Only those schools listed in the federal register can or will be considered for special cancellation benefits.)

Service performed as detailed above qualifies the borrower for:

15% cancellation of funds disbursed for each of the first two years of teaching service.

20% cancellation of funds disbursed for both the third and fourth years of teaching service.

30% cancellation of funds disbursed for the fifth year of such service.

Up to 100% of the Student Loan Funds disbursed can be cancelled under this provision.

Service performed as a full-time staff member in a pre-school program carried under section 222(a)(1) of the Economic Opportunity Act of 1964 as amended that is operated for a period that is comparable to a full school year also qualifies for benefits. Employment must be in a full-time professional capacity to complete the educational part of the program; the salary must not exceed the salary of a comparable employee of the local education agency. Such service is eligible for cancellation at the rate of 15% of the eligible funds for each year of service.