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Cancellation

Important:

Please continue to complete the Boston College Deferment and Cancellation Application forms from the links below. You will continue to correspond directly with Boston College for these benefits.


Qualifications for Cancellation Benefits

A borrower must be employed full-time for twelve consecutive months in a qualifying position with a qualifying agency. Specific criteria for each type of cancellation must be met, in addition to providing required documentation requested by the University (copy of license, certification, or registration).

The borrower's account must be paid current to the date of eligible employment for cancellation.


Professional Employment

Perkins loan borrowers may have all or part of a Perkins loan cancelled while employed full-time for twelve consecutive months in a qualifying profession. Below is a list of those that qualify. Click on the links below for more specific information and forms.

Applying for Cancellation

Based on the supplied documentation, the Student Services Loan Department will determine whether the borrower is entitled to have any portion of the loan deferred and cancelled.

Deferment and Cancellation Process

Step 1: A borrower must file a request for deferment for the expected year of employment. While on deferment, no interest will accrue on the loan and no payments will be required.

Step 2: Upon the completion of twelve consecutive months of full-time qualifying service, the borrower will file a request for cancellation for the previous year and a request for deferment for the following year. A Cancellation form must be submitted for each year of eligible employment until the loan is either fully cancelled or eligibility requirements are no longer being met. If the borrower changes jobs during the deferment period and is sure that the new position is eligible for loan cancellation, he or she must submit a cancellation form from both the previous and current employers at the end of the deferment.

Cancellation Rates

Cancellation is available for Perkins loans only. It will take five years for a Perkins loan to be cancelled in full. The following rates apply to most Cancellations:

  • 15% for the first and second years of qualifying service
  • 20% for the third and fourth years
  • 30% for the final year
Cancellation Rates — Partial Cancellation

Peace Corps volunteers may be eligible to cancel up to 70% of a Perkins loan at the rate of:

  • 15% for the first and second years of qualifying service
  • 20% for the third and fourth years

Those serving full-time active duty in the Armed Forces may be eligible to cancel up to 50% of a Perkins loan at a rate of 12.5% per year. The borrower must be serving in an area of hostility or imminent danger that qualifies for special pay under Section 310, Title 37 of the U.S. code.

Certification (Deferment and Cancellation Form Process)

The borrower must fully complete Part 1 of the form.

The borrower's employer must complete Part 2 of the form certifying that the employment information regarding the borrower's eligibility is correct. This is usually done in the human resources department of the qualifying institution/agency.

An official agency stamp or seal (not a notary or address stamp) is required for the deferment or cancellation form to be valid. If an official stamp or seal is unavailable, a letter on letterhead stationary providing the following information regarding the borrower is required:

For deferment:
  • Name and Social Security Number
  • Title and job description
  • Date of initial employment in that job
  • Verification that the borrower is employed full-time
In addition, for cancellation requests you must provide:
  • A statement that the borrower has completed the full year of full-time employment for the beginning and ending dates specified on the application form
  • The date the borrower's employment ceased, or a notice that the borrower will be continuing in their position for the next year

***Please note that a Boston College–specific cancellation form along with a job description must be received for each year of eligible cancellation. There are no exceptions.


Death and Disability

Death

The Department of Education requires a school to cancel any Perkins loan upon receipt of a death certificate or other certification recognized by the state.

Disability

Borrowers who become totally and permanently disabled may qualify for cancellation of this loan. Permanent and total disability is the inability to work and earn money because of an impairment expected to continue indefinitely or result in death. An application for total and permanent disability must be filed, including any support documents as stated by the University. In addition, a doctor's affidavit that the borrower is 100% disabled is required.

Social Security disability does not guarantee Perkins loan cancellation.

After receiving the application, the Student Services Loan Department will determine whether the application is viable. At that time, the account will be assigned to the U.S. Department of Education. From that point on, Boston College will no longer hold the note for this account.

The Department of Education will monitor the account for three years before determining whether the account will be cancelled. If at any time the borrower is able to work or receive money to attend school, the Department of Education will resume collection on this loan.

Download a Request for Temporary Total Disability Deferment (PDF) or Request for Total and Permanent Disability Deferment (PDF).


Bankruptcy

Contact a representative in Campus-Based Loans at 800-294-0294 or borrower@bc.edu for more information.