Thursday, March 10, 2011

Law Enforcement Officers, Get Your Federal Perkins Loans Cancelled

Attention Law Enforcement Officers Who Have Attended College:

This may be old news, but it is new to me and I thought I would share with anyone interested.  As a full-time law enforcement officer you qualify to have your Federal Perkins Loans cancelled.  A borrower may have all or part of his or her loan (including interest) cancelled for engaging in public service and a law enforcement career is one of the qualifiers.  The provisions vary based on the date that your loan was disbursed.  I would encourage anyone who accepted a Perkins Loan to look into this to see if you qualify.

A borrower may be entitled to receive cancellation benefits for full-time service as a qualifying law enforcement or corrections officer. To establish the eligibility of a borrower for this benefit, the school must determine a) the borrower's employing agency is eligible and b) the borrower's position is essentials to the agency's primary mission.
  • A local, state, or federal agency is an eligible employing agency if it is publicly funded and its activities pertain to crime prevention, control, or reduction or to the enforcement of the criminal law. Such activities include, but are not limited to, police efforts to prevent, control, or reduce crime or to apprehend criminals; activities of courts and related agencies having criminal jurisdiction; activities of corrections, probation, or parole authorities; and problems relating to the prevention, control, or reduction of juvenile delinquency or narcotic addiction. Agencies that are primarily responsible for enforcement of regulatory, civil, or administrative laws are ineligible.
  • For the borrower's position to be considered essential to the agency's primary mission, he or she must be a full-time employee of an eligible agency and a sworn officer or person whose principal responsibilities are unique to the criminal justice system and are essential in the performance of the agency's primary mission. The agency must be able to document the employee's functions.
Individuals whose official responsibilities are supportive, such as those that involve filing, typing, accounting, office procedures, purchasing, stock control, food service, transportation, or building, equipment or grounds maintenance are not eligible regardless of where these functions are performed. A borrower employed as a public defender also does not qualify for this benefit. Note: Borrowers serving as campus police or military police do qualify for this benefit. The cancellation rate is as follows:
  • 15% of the original principal loan amount and accrued interest for the first and second years of service.
  • 20% of the original principal loan amount and accrued interest for the third and fourth years of service.
  • 30% of the original principal loan amount and accrued interest for the fifth year of service.
Eligibility - Perkins loans made on or after November 29, 1990 or NDSL loans made before November 29, 1990 for service performed beginning October 7, 1998
Maximum Amount Canceled - Up to 100%

For more information -

1 comment:

  1. School teachers, cops, and firefighters also are eligible for a special deals on HUD houses. I believe the way it works is that whatever the bid/price, the teacher or public safety officer is required to pay (via mortgage loan, etc.) only half, as long as they actually live in the home for X number of years. Rehab loan funds at good rates.