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The Billing and Payment Gateway of UMass Amherst

Military Service

Maximum Amount Canceled: 
Up to 100%
Eligibility: 
Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008

Borrowers who served on or after August 14, 2008 are eligible for a maximum cancellation of 100% based on years of service in an area of hostilities or an area of imminent danger.

The current rate of cancellations is:

  • 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.

 

For borrowers with military service in an area of hostility or an area of imminent danger prior to August 14, 2008 the maximum cancellation was 50% at a rate of 12.5% per year. This cancellation provision is specific to those with loans made after April 13, 1970 and with military service beginning after June 30, 1970.

To qualify for military service cancellation, the borrower must be active duty serving in a branch of the U.S. armed forces and be receiving special pay. The “U.S. armed forces” are the United States Army, Navy, Air Force, Marine Corps, or Coast Guard.

The borrower’s commanding officer must certify the borrower’s service dates. Active duty service for less than a complete year or a fraction of a year beyond a complete year does not qualify. A complete year of service is 12 consecutive months. [For any part of a month of service, that month qualifies toward the borrower’s eligibility.]