[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR674.52]



[Page 601-602]

 

                           TITLE 34--EDUCATION

 

 CHAPTER VI--OFFICE OF POSTSECONDARY 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 Sec. Sec. 674.53, 674.54, 674.55, 674.56, 674.57, 674.58, 674.59, 

and 674.60 is granted.



[[Page 602]]



    (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 Sec. Sec. 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]