[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: 34CFR674.58]



[Page 605-606]

 

                           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. 674.58  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 606]]



    (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]