Federal Perkins Loan Repayment – Deferment - Cancellation
Repayment
You have up to 10 years to repay your total loan amount. Your repayment will begin immediately after the nine-month grace period expires. You may prepay all or any part of the loan principal at any time before it becomes due. Payments made by you and other borrowers to the University are the primary source of Perkins funds for current students.
Deferment
Numerous deferments are allowed on these loans. Deferment means that you are permitted to temporarily stop payments on the principal (and in some cases interest) while you meet certain program criteria. However, the types of deferments available to you depend on what loan types and when the loans were disbursed to your student account. To determine which deferments may be available to you, please review the dates of your promissory notes and then refer to the University of Minnesota's Federal Perkins Loan Deferment Provisions (downloadable PDF format).
Renegotiation and forbearance
If you have difficulty making payment, you may be eligible for forbearance or to renegotiate your repayment schedule. Renegotiation allows you to make reduced payments over a limited time period if you are unable to meet your repayment schedule. If you experience an extreme financial hardship, forbearance allows for a temporary suspension of payments. In either case, repayment must still be completed within a 10-year period. To request renegotiation or forbearance, contact Student Financial Collections , the office responsible for determining whether to grant renegotiation or forbearance.
Cancellation
Please refer to the University of Minnesota's Federal Perkins Loan Cancellation Provisions (downloadable PDF format), and your promissory note(s) to determine your eligibility for partial or total cancellation.
Partial cancellation
You may have all or part of your federal Perkins or National Direct Student Loan (including interest) canceled for engaging in public service or certain teaching fields as long as you are not in default. The loan program and disbursement date determine what cancellation options that are available to you.
Up to 100 percent cancellation, full-time service as:
- a teacher in a designated elementary school or secondary school serving students from low-income families
- special education teacher (includes teaching children with disabilities in a public or other nonprofit elementary or secondary school)
- qualified professional provider of early intervention services for the disabled
- teacher of math, science, foreign languages, bilingual education, or other fields designated as teacher shortage areas
- employee of a public or nonprofit child or family service agency providing services to high-risk children and their families from low-income communities
- nurse or medical technician
- law enforcement corrections officer
Total cancellation
Total cancellation may be allowed in the following cases. Documents must be submitted to Student Financial Collections, 20 Fraser Hall.
- Death: To claim cancellation, the executor of your estate must submit a death certificate or other official proof which is conclusive under state law.
- Total and permanent disability: To claim this entitlement, you must submit a written request and a physician's statement certifying the date of onset, nature, and extent of your disability, along with copies of all medical records pertinent to the disability.
- Bankruptcy: In some cases, student loans can be canceled by a bankruptcy discharge. Please contact your attorney for information on this.
