[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: 34CFR674.57]



[Page 605]

 

                           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. 674.57  Cancellation for law enforcement or corrections officer 

service--Federal Perkins, NDSL and Defense loans.



    (a)(1) An institution must cancel up to 100 percent of the 

outstanding balance on a borrower's Federal Perkins or NDSL made on or 

after November 29, 1990, for full-time service as a law enforcement or 

corrections officer for an eligible employing agency.

    (2) An institution must cancel up to 100 percent of the outstanding 

loan balance on a Federal Perkins, NDSL or Defense loan made prior to 

November 29, 1990, for law enforcement or correction officer service 

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) An eligible employing agency is an agency--

    (i) That is a local, State, or Federal law enforcement or 

corrections agency;

    (ii) That is public-funded; and

    (iii) The principal activities of which pertain to crime prevention, 

control, or reduction or the enforcement of the criminal law.

    (4) Agencies that are primarily responsible for enforcement of 

civil, regulatory, or administrative laws are ineligible employing 

agencies.

    (5) A borrower qualifies for cancellation under this section only if 

the borrower is--

    (i) A sworn law enforcement or corrections officer; or

    (ii) A person whose principal responsibilities are unique to the 

criminal justice system.

    (6) To qualify for a cancellation under this section, the borrower's 

service must be essential in the performance of the eligible employing 

agency's primary mission.

    (7) The agency must be able to document the employee's functions.

    (8) A borrower whose principal official responsibilities are 

administrative or supportive does not qualify for cancellation under 

this section.

    (b)(1) To qualify for cancellation under paragraph (a) of this 

section, a borrower shall work full-time for 12 consecutive months.

    (2) Cancellation rates are--

    (i) 15 percent of the original principal loan amount plus the 

interest on the unpaid balance accruing during the year of qualifying 

service, for each of the first and second years of full-time employment;

    (ii) 20 percent of the original principal loan amount plus the 

interest on the unpaid balance accruing during the year of qualifying 

service, for each of the third and fourth years of full-time employment; 

and

    (iii) 30 percent of the original principal loan amount plus the 

interest on the unpaid balance accruing during the year of qualifying 

service, for the fifth year of full-time employment.



(Authority: 20 U.S.C. 465)



[59 FR 61414, Nov. 30, 1994, as amended at 64 FR 58314, Oct. 28, 1999]