Partial Cancellation of a Perkins Loan


Eligibility

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. The complete list of cancellations follows.

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


You may be eligible for cancellation if you are working full-time:


Cancellation is also possible if:

  • You become totally and permanently disabled

Deferment Provisions

If you are deemed to be 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:

  • by contacting our office (262-1791), or
  • on this web site, at the end of the description of each cancellation type.

After filling out all relevant sections of the form, be sure to:

  • sign the form and
  • have your employer certify the form.

Our office will notify you of the results once we have received and processed your completed, certified form. If your cancellation request is acceptable, any interest which might have accrued during the year will be cancelled, together with a percentage of your remaining principal.


Information for Relatives of Borrowers

In the event of a borrower's death, the balance of all outstanding loans will be cancelled.

Please send a death certificate, or other proof of death that satisfies state law, to our office.

You will be notified when the cancellation has been processed.


Forms and questions should be directed to:

The University of Wisconsin
Bursar's Office - Student Loans
333 East Campus Mall #10501
Madison, WI 53715-1383

(608) 262-1791
stuloans@bussvc.wisc.edu
(Fax) 608/265-3201

If you have cancellation questions while on campus, please stop at the Student Loans Office, 333 East Campus Mall #10501.