[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: 34CFR674.58]

[Page 619-620]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 674--FEDERAL PERKINS LOAN PROGRAM--Table of Contents
 
                      Subpart D--Loan Cancellation
 
Sec. 674.58  Cancellation for service in a Head Start program.

    (a)(1) An institution must cancel up to 100 percent of the 
outstanding balance on a borrower's NDSL or Federal Perkins loan, for 
service as a full-time staff member in a Head Start program.

[[Page 620]]

    (2) An institution must cancel up to 100 percent of the outstanding 
balance on a Defense loan for service as a full-time staff member in a 
Head Start program performed on or after October 7, 1998, if the 
cancellation benefits provided under this section are not included in 
the terms of the borrower's promissory note.
    (3) The Head Start program in which the borrower serves must operate 
for a complete academic year, or its equivalent.
    (4) In order to qualify for cancellation, the borrower's salary may 
not exceed the salary of a comparable employee working in the local 
educational agency of the area served by the local Head Start program.
    (b) The cancellation rate is 15 percent of the original loan 
principal, plus the interest on the unpaid balance accruing during the 
year of qualifying service, for each complete academic year, or its 
equivalent, of full-time teaching service.
    (c)(1) ``Head Start'' is a preschool program carried out under the 
Head Start Act (subchapter B, chapter 8 of title VI of Pub. L. 97-35, 
the Budget Reconciliation Act of 1981, as amended; formerly authorized 
under section 222(a)(1) of the Economic Opportunity Act of 1964). (42 
U.S.C. 2809 (a) (1))
    (2) ``Full-time staff member'' is a person regularly employed in a 
full-time professional capacity to carry out the educational part of a 
Head Start program.

(Authority: 20 U.S.C. 425)

[52 FR 45758, Dec. 1, 1987. Redesignated and amended at 59 FR 61413, 
61415, Nov. 30, 1994; 64 FR 58314, Oct. 28, 1999]