Student Loan Forgiveness

The U.S. Department of Education (ED) administers three types of
student loans: Federal Perkins Loans (formerly National Direct Student
Loans [NDSLs]), Federal Family Education Loans (FFELs), and William D. Ford Federal Direct Loans (Direct Loans). 

The FFEL Program comprises FFEL Stafford Loans, FFEL PLUS Loans, and FFEL Consolidation Loans.

The Direct Loan Program comprises Direct Stafford Loans, Direct PLUS Loans, and Direct Consolidation Loans.

ED loan program cancellation provisions are established by law. A FFEL or Direct Loan cannot be canceled or reduced for a borrower's service as a social worker. A Federal Perkins Loan borrower may receive cancellation for the loan by serving full time as:

     *a qualified professional provider of early intervention services
in a public or nonprofit program under public supervision; or

     *an employee of a public or private nonprofit child or family
service agency if he or she provides or supervises services for
high-risk children and their families residing in low-income
communities.

The cancellation rates for these provisions are

     *15 percent per year for the first and second years of qualifying
service,
     *20 percent for the third and fourth years, and
     *30 percent for the fifth year.

For procedures on canceling a Federal Perkins Loan, contact the school
that made the loan.

The promissory note the borrower signs before obtaining the loan lists
the cancellation provisions. Changes to the cancellation provisions
would require Congress to pass legislation.