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.
Eligibility:
Perkins loans made on or after July 1, 1987 or NDSL loans made before July 1, 1987 for service performed beginning October 7, 1998
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).
