Loan Cancellation

Cancellation Options for the Perkins Loan

Information for Relatives of Borrowers

All loans (Perkins, Health Profession, Institutional, Nursing, or Short Term) through the Student Loan office are eligible for cancellation in the event of a borrower's death upon receiving a death certificate, or other proof of death that satisfies state law, to our office. A notification will be sent when the cancellation has been processed.


Due to Amendments to the Higher Education Act, which became effective during October 1998, borrowers with loans disbursed prior to July 1993 are now eligible for additional Cancellations and Deferments. This means that you may be eligible for cancellations which are not listed on your promissory note. A list of eligible occupational and military cancellations can be found in the Federal Financial Aid Handbook.

For disability cancellations, please visit the U.S. Department of Education at

This change is for work performed on or after October 1998; it is not retroactive to prior work experience.

Deferment Provisions

If you are eligible for one of the above types of cancellation, scheduled payments will be deferred. In addition, you will not be liable for any interest that might otherwise accrue.

The deferment period will end when you are no longer occupied in the position listed above.

You may continue to defer scheduled payments and will not be liable for any interest that might otherwise accrue for a six (6) month period immediately following the expiration of your deferment period.

If you feel that you qualify for cancellation because you teach at a school with students from low-income families, you may verify that your school is in the Federal Register of Low Income Schools at the government's Teacher Cancellation site.

When to Apply

NOTE: Failure to file a form on time results in the same consequences as not making a payment when due.

Your loan will NOT be canceled:

  • for services performed before the date that the loan was disbursed.
  • during the same academic year that the loan was received.
  • (for some loans) until you have earned the appropriate degree.

You must apply for a cancellation each year that you are eligible.

  • If you have not completed a year's employment, you should apply to have your payments postponed or deferred. At the end of the year, we will send you a form to apply for cancellation.
  • Once you have completed a year's employment, you should apply to have your payments cancelled.

How to Apply

If you feel that you are eligible for partial cancellation, forms are available:

  • Online at under 'Students' and 'Download Forms.'
  • By contacting the Student Loan office at (608)-262-1791 or at

Once a completed, certified form has been received and processed, the borrower will be notified. If the cancellation request is approved, any interest which might have accrued during the year will be cancelled, together with a percentage of your remaining principal.

Forms and questions should be directed to:

The University of Wisconsin - Madison
Bursar's Office - Student Loans
333 East Campus Mall #10501
Madison, WI 53715-1383
Phone: 608-262-1791 (Open until 4:30 PM)
Fax: 608-265-3201

Customer Service Window hours:
Monday, Tuesday, Thursday, Friday 8:00 AM to 4:00 PM
Wednesday: 9:15 AM to 4:00 PM