The borrower can accelerate repayment of his or her student loan without penalty. Accelerated Payments, however, can not take the place of regularly scheduled payments. If you make an accelerated payment, your next payment due date still might fall as originally scheduled. A Payment for more than the scheduled amount might not reduce the next payment by that same amount. If you wish the amount of your payment, which is in excess of the regularly scheduled payment, applied to the next scheduled installment(s) of your loan, it will be necessary for you to request this special handling in a letter accompanying your payment.

Federal Perkins borrowers with loans received on or after July 1, 1987 might qualify for the deferment benefits stated below as well as those applicable to loans received prior to July 1, 1987.

Interest will not accrue and installments need not be paid for a period in excess of limit stated.

1. Internship or residency leading to a degree/certificate awarded performed in a facility offering post graduate training. (2-year limit)
2. Temporary Total Disability for borrower or spouse. (3-year limit)
3. Temporary Total Disability of a dependent in your care preventing you from attending school or from being employed. (3-year limit)
4. Active duty in the National Oceanic and Atmospheric Administration Corps. (3-year limit)
5. Parental leave deferment if the following provisions are met by you, the borrower:
   • a. Are pregnant or are caring for your newborn or newly adopted child; and,
   • b. Not gainfully employed/attending school; and,
   • c. Have attended an eligible school at least 1/2 time during the last six months. (6-month limit)
6. The mother of pre-school age children and are entering or re-entering the workforce making less than $1 more than Federal minimum Wage. (12-month limit)

Under the Federal Perkins Student Loan Program, borrowers performing teaching services might be eligible for cancellation credit that might be applied toward payments of Loan Principal and Accrued Interest.

A teacher is defined as one who is a Professional Employee of a school or school system working on a Full-Time Basis and is devoted to providing classroom instruction or related services in Support Of The Educational Program.

Cancellation benefits are offered for Teaching Service performed with Handicapped Students. The teaching service must be performed in classes where the majority of the students are handicapped and must be in an institution providing Elementary or Secondary Education as determined by state law. Cancellation benefits are offered to those Teachers Or Staff Members serving in public or non-profit private elementary or secondary schools having High Concentrations Of Students From Low-Income Families.

To be eligible for cancellation benefits, however, the school in which teaching service is performed must be included in the listing of schools having High concentrations of Students From Low-Income Families, which is published in the Federal Register. (The Federal Register is a document compiled each year by the federal government from Lists Submitted By The Individual States, of schools designated by those states to have a high concentration of students from low-income families. Each state, however, is given a quota of schools to be listed and not all schools having high concentrations of students from low-income families will be listed. Only those schools listed in the federal register can or will be considered for special cancellation benefits.)

Service performed as detailed above qualifies the borrower for:

15% cancellation of funds disbursed for each of the first two years of teaching service.

20% cancellation of funds disbursed for both the third and fourth years of teaching service.

30% cancellation of funds disbursed for the fifth year of such service.

Up to 100% of the Student Loan Funds disbursed can be cancelled under this provision.

Service performed as a full-time staff member in a pre-school program carried under section 222(a)(1) of the Economic Opportunity Act of 1964 as amended that is operated for a period that is comparable to a full school year also qualifies for benefits. Employment must be in a full-time professional capacity to complete the educational part of the program; the salary must not exceed the salary of a comparable employee of the local education agency. Such service is eligible for cancellation at the rate of 15% of the eligible funds for each year of service.

Loans Made On Or After July 1, 1987

You can receive partial cancellation for service in the Peace Coprs or VISTA. There is a four year limit. The first two years qualify for 15% each; and years three and four qualify for 20% each.

For Loans Made After November 28, 1990

You might receive partial cancellation if you were/are a full-time law enforcement or corrections officer. Up to 100% of the Student Loan Funds disbursed can be cancelled under this provision.

For Loans Made On Or After July 23, 1992

Cancellation provisions have been expanded to include the following services:

1. Full-time special education teachers in a public or other non-profit elementary or secondary school system, or full-time qualified professional provider of early intervention services in a public or other non-profit program under public supervision.
2. A teacher of any field of expertise considered by the state education agency to have a shortage of qualified teachers (i.e., mathematics, science, bilingual education, foreign languages).
3. A full-time nurse or medical technician.
4. An employee of a public/private non-profit child or family service agency who is providing or supervising the provision of services to "high risk" children and their families from low-income communities.

Simple interest, as indicated on the Exit Interview and promissory notes, on the total loan or unpaid balance of the loan commences 90 days following the date of graduation, withdrawal, or leave of absence from Rensselaer. Repayment is made in quarterly installments beginning with the date given on the Exit Interview Agreement in the sum of at least fifty dollars ($50.00). The maximum repayment period is therefore determined by the total amount of your loan (i.e., total loan of $ 200.00 -- four quarterly installments of $ 50.00, plus interest on the loan added to the fourth installment -- maximum repayment period is one year). In no event will the repayment period exceed ten years.

A full or partial repayment of the loan at any time, or a payment in excess of the amount due at a given time in accordance with the repayment schedule, is permissible. Repayment ahead of schedule is urged, when possible, both to save interest payments for the borrower and to make the money available to other needy students.