CANCELLATION PROVISIONS SPECIFIC TO PERKINS LOANS

For Perkins Loans only, a borrower is entitled to cancel up to 70% of the loan for service as a Peace Corps volunteer or volunteer under the Domestic Volunteer Service Act (ACTION Program); an authorized official of the Peace Corps or ACTION program must sign the borrower's cancellation form to certify the borrower's service. The cancellation rate per year of service is:

• 15% of the original principal loan amount - plus any interest that accrued during the year - for each of the first and second 12-month periods of service and
  
• 20% of the original principal loan amount - plus any interest that accrued during the year - for each of the third and fourth 12-mont periods of service.

There is currently no provision for cancellation of Stafford, PLUS, and/or Supplemental Loans for students from services in the above-mentioned programs.