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Teaching Cancellation

low-income schools

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If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to use Boston College forms, which may be obtained from the links below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 1-800-294-0294.

This cancellation applies to all Federal Perkins loans and National Direct Student Loans.

Eligible Employment

To qualify for this partial yearly cancellation, a borrower must:

  • teach full-time for a full academic year or two semesters which are completed and consecutive and that generally fall within a twelve-month period;
  • teach full-time in a public or other non-profit elementary or secondary school system and be directly employed by the school system (educational programs below grade one may be included if they are part of the state's elementary program);
  • provide direct and personal services to students through direct classroom teaching or classroom-type teaching in a non-classroom setting, or be providing educational services directly related to classroom teaching such as school librarians or school guidance counselors (a teacher's aide, social worker, or school psychologist may qualify for cancellation in some circumstances; however, a supervisor, administrator, researcher, or curriculum specialist is not a teacher unless he or she primarily provides direct and personal educational services to students); and
  • teach in a school that is listed in the Directory of Designated Low-Income Schools of the Federal Register for that academic year. The directory is updated and published annually by the Federal government.
Subsequent Year Provision:

If you received partial cancellation for one year of service in a school listed in the directory, but the subsequent year the same school is not listed, you are still eligible to receive partial cancellation on the same school based on your prior-year qualification.

To find out if the school that employs you is classified as a low-income school, you can check the U.S. Department of Education online database for the year(s) that you have been employed as a teacher. Questions about the inclusion or omission of a particular school should be directed to the state education agency contact in the state where the school is located, not the U.S. Department of Education.

Definition of a "Low-Income" School

  • A low-income school is one with more than 30% of its enrollment counted in the funding formula of Title 1 of the Elementary and Secondary Education Act of 1965, as amended.
  • The school must be a public or other non-profit private elementary or secondary school that is located in the school district of a local educational agency that is eligible for assistance under Title 1 of the Elementary or Secondary Education Act of 1965, as amended.
  • All elementary and secondary schools operated by the Bureau of Indian Affairs (BIA) or operated on reservations by Indian tribal groups under contract with the BIA qualify as low-income schools.

Cancellation Rates

  • 15% of the original principal amount for each of the first and second full years of employment;
  • 20% of the original principal amount for each of the third and fourth full years of employment; and
  • 30% of the original principal amount for the fifth full year of employment.

General Requirements

  • Borrower must apply for deferment and cancellation by obtaining the specific cancellation forms from Boston College (see link below).
  • Borrower must provide employment verification; proof of license, registration, or certification; and any other documentation that the school requests to show that he or she qualifies for cancellation.
  • Attach verificiation that your school is considered low-income from the Directory of Designated Low-Income Schools of the Federal Register.
  • Forms must be submitted by the deadlines established by Boston College.
  • None of the loan may be cancelled for services performed either before the date the loan was disbursed or during the enrollment period covered by the loan.
  • Defaulted loan amounts are not eligible for cancellation. Only cancellations for time prior to acceleration will be allowed.
  • No repayments made by a borrower during a period for which the borrower qualified for cancellation may be refunded.

Download a Teaching Cancellation (Low-Income School) form (PDF).