Perkins Loan Cancellation Letter
Its official, I have completely paid off my Perkins Loan! Technically, I didn’t pay any of it, as it was all cancelled. By working as a PA it qualified as work as a “medical technician”.
The cancellation for Perkins Loans happens over a five year period – it actually occurs over a six year period, as you have to work a year before the cancellation is applied. Each year you work in a qualified position you have to complete paperwork at the end of the year and have it signed by your employer. Once you submit it, you’ll get a letter stating how much was cancelled. Each year a percentage of your loan is cancelled.
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Last year was the final year that I needed to submit the paperwork and as stated in the letter the principal has been entirely cancelled! As I had Perkins Loans from undergrad as well as PA school I was able to have it all cancelled.
This does take a little work on the part of the borrower as you have to remember each year to complete the paperwork and send it in, but honestly it’s not that difficult if you remember to do it and worth the few thousand dollars in savings. Also, your first year, don’t forget to have your payments deferred. If you don’t do this you’ll be making payments on the loan and that is money that could be cancelled.
Overall, most of my loans were Direct Loans so the next part of my plan is to slowly chip away at those and hopefully have them paid off in the next five years.
If you have a lot of direct loans there are few options to have someone else pay them for you, or you can try to lower your interest rate by refinancing them.
What are your plans for paying off your student loans? Please comment below on the original article, share with your friends and sign up to receive future posts by email!
