A borrower may cancel a portion of their loan for volunteer service under the Peace Corps or Vista Service. However, Americorp recipients cannot cancel a portion of their loan if they have received a national service education award for the same period of service (Subtitle D of Title I of the National and Community Service Act of 1990).
Maximum Amount Canceled:
Up to 70% of the loan at the following increments: 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.
Perkins loans made on or after July 1, 1987 or NDSL loans made before July 1, 1987 for service performed beginning October 7, 1998