Maximum Amount Canceled:
Up to 100%
NDSL/ Perkins loans made on or after July 1, 1972
- 15% of the original principal loan amount plus accrued interest for the first and second years of service.
- 20% of the original principal loan amount plus accrued interest for the third and fourth years of service.
- 30% of the original principal loan amount plus accrued interest for the fifth year of service.
A borrower may be eligible to cancel all or a portion of their loan for teaching services as follows:
- A full-time teacher in a public or nonprofit elementary or secondary school serving students from low-income families.
- A full-time teacher of handicapped students in a public or nonprofit elementary or secondary school. The majority of children being taught must handicapped.
- A full-time special education teacher including teachers of infants, toddlers, children or youth with disabilities in a public or nonprofit elementary or secondary school system.
- A full-time teacher in a public or other non-profit elementary or secondary school in the fields of mathematics, science, foreign languages, bilingual education or in any other field of expertise that is determined by a state education agency to have a shortage of qualified teachers in that state. See the Nationwide Listing of Teacher Shortage Areas [PDF]. of teacher shortage areas in individual states.
An eligible teacher is defined as someone with:
- direct classroom teaching
- classroom type teaching in a non-classroom setting
- educational services directly related to classroom teaching
(school librarians and school guidance counselors are eligible under this category)