[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR674.52]

[Page 615-616]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 674--FEDERAL PERKINS LOAN PROGRAM--Table of Contents
 
                      Subpart D--Loan Cancellation
 
Sec. 674.52  Cancellation procedures.

    (a) Application for cancellation. To qualify for cancellation of a 
loan, a borrower shall submit to the institution to which the loan is 
owed, by the date that the institution establishes, both a written 
request for cancellation and any documentation required by the 
institution to demonstrate that the borrower meets the conditions for 
the cancellation requested.
    (b) Part-time employment. (1)(i) An institution may refuse a request 
for cancellation based on a claim of simultaneously teaching in two or 
more schools or institutions if it cannot determine easily from the 
documentation supplied by the borrower that the teaching is full-time. 
However, it shall grant the cancellation if one school official 
certifies that a teacher worked full-time for a full academic year.
    (ii) An institution may refuse a request for cancellation based on a 
claim of simultaneous employment as a nurse or medical technician in two 
or more facilities if it cannot determine easily from the documentation 
supplied by the borrower that the combined employment is full-time. 
However, it shall grant the cancellation if one facility official 
certifies that a nurse or medical technician worked full-time for a full 
year.
    (2) If the borrower is unable due to illness or pregnancy to 
complete the academic year, the borrower still qualifies for the 
cancellation if--
    (i) The borrower completes the first half of the academic year, and 
has begun teaching the second half; and
    (ii) The borrower's employer considers the borrower to have 
fulfilled his or her contract for the academic year for purposes of 
salary increment, tenure, and retirement.
    (c) Cancellation of a defaulted loan. (1) Except with regard to 
cancellation on account of the death or disability of the borrower, a 
borrower whose defaulted loan has not been accelerated may qualify for a 
cancellation by complying with the requirements of paragraph (a) of this 
section.
    (2) A borrower whose defaulted loan has been accelerated--
    (i) May qualify for a loan cancellation for services performed 
before the date of acceleration; and
    (ii) Cannot qualify for a cancellation for services performed on or 
after the date of acceleration.
    (3) An institution shall grant a request for cancellation on account 
of the death or disability of the borrower without regard to the 
repayment status of the loan.
    (d) Concurrent deferment period. The Secretary considers a Perkins 
Loan, NDSL or Defense Loan borrower's loan deferment under 
Sec. 674.34(c) to run concurrently with any period for which 
cancellation under Secs. 674.53, 674.54, 674.55, 674.56, 674.57, 674.58, 
674.59, and 674.60 is granted.

[[Page 616]]

    (2) For loans made on or after July 1, 1993, the Secretary considers 
a borrower's loan deferment under Sec. 674.34 to run concurrently with 
any period for which a cancellation under Secs. 674.53, 674.56, 674.57, 
or 674.58 is granted.
    (e) National community service. No borrower who has received a 
benefit under subtitle D of title I of the National and Community 
Service Act of 1990 may receive a cancellation under this subpart.

(Approved by the Office of Management and Budget under control number 
1845-0019)

(Authority: 20 U.S.C. 425, 1087ee)

[52 FR 45758, Dec. 1, 1987, as amended at 53 FR 49147, Dec. 6, 1988; 59 
FR 61413, Nov. 30, 1994; 62 FR 50848, Sept. 26, 1997; 64 FR 58313, Oct. 
28, 1999]