If you have a Perkins Student Loan you may be eligible for Perkins loan forgiveness. That means you could have your Perkins loan debt partially or fully canceled so that you no longer need to pay it.
Read on to find out how Perkins loan forgiveness works and whether you might qualify.
Key Points
• Perkins loans, which are low-interest federal loans for students once given to students with exceptional financial need, are eligible for forgiveness under certain conditions.
• Full-time public service workers in education, military, law enforcement, and other fields may receive up to 100% loan cancellation over five years if they meet certain criteria.
• Teachers in low-income schools or certain subject areas, and some nonprofit workers, may qualify for loan cancellation, with specific requirements for each occupation.
• The Perkins loan forgiveness process requires application through the school that issued the Perkins loan or the loan servicer, with proof of qualifying employment.
• Perkins loans forgiven between 2021 and 2025 are not federally taxable, but this status may change.
What Are Perkins Loans?
Student loan borrowers may have federal or private student loans, or a combination of both types. Perkins loans are low-interest subsidized federal loans for students with exceptional financial need.
The federal student loan interest rate on Perkins loans was a fixed 5%. The government covered the interest that accrued on these loans while students were in school.
Perkins Loans are no longer offered — the program ended in 2017. However, borrowers who have Perkins loans are still required to repay them. In certain situations, these borrowers might qualify for certain federal benefits like Perkins loan forgiveness or Perkins loan cancellation to help get out of student loan debt.
Perkins Loan Forgiveness Options
Borrowers may be eligible for Perkins student loan forgiveness if they work full-time in public service jobs such as education, military service, and law enforcement. Here are details about the different federal Perkins loan forgiveness options.
Teaching Service Cancellation
If you teach in a public or nonprofit school, you may be able to get Perkins loan cancellation. Perkins loan cancellation for teachers forgives up to 100% of your Perkins loans if you are a special education teacher, work in a low-income school district, or teach certain subjects, such as math, science, or a foreign language.
If you’re eligible, a percentage of your Perkins loan balance and the interest it accrues will be canceled annually over five years in the following increments: 15% for your first and second years of teaching, 20% for your third and fourth years of service, and 30% for your fifth year of teaching.
You may also qualify for Perkins loan cancellation if you’re a speech pathologist, a librarian, or work in an educational role in a Head Start program and you started working on or after August 14, 2008.
Public Service Cancellation
You may qualify for forgiveness of your Perkins loans if you work in certain nonprofit public service jobs and fields, such as:
• Child or family services agency: Those employed in an educational job in a child or a family services agency may be eligible for complete loan cancellation after five years of service. Qualifying jobs include working at a prekindergarten or child-care program for students in low-income communities.
• AmeriCorps VISTA or Peace Corps volunteer: Individuals who serve as VISTA or Peace Corps volunteers for four years may qualify for up to 70% Perkins loan cancellation.
Military Service Cancellation
Members of the military can potentially qualify for Perkins loan forgiveness. Military service members may be eligible for up to 50% loan cancellation for four years of service if their active service ended before August 14, 2008. Those whose active duty began on that date or later might qualify for up to 100% loan cancellation for five years of service.
Law Enforcement and Corrections Officer Cancellation
If you’re a law enforcement officer, correctional officer, or firefighter, you might qualify for up to 100% loan cancellation if you serve five years full-time at an eligible law enforcement agency or federal, state, or local firefighting agency. Firefighters must have started work on or after August 14, 2008.
Recommended: Student Debt by Major
Eligibility Requirements for Forgiveness
The requirements to qualify for Perkins loan forgiveness can be fairly stringent. Generally, you must be employed full-time to be eligible for Perkins loan forgiveness. You’ll also need to meet the following requirements:
• Elementary or secondary teacher: Teachers (including supervisors, administrators, researchers, and curriculum specialists) may qualify as long as they work full-time for a full academic year or two half-years at different schools within 12 consecutive months. They can also teach part-time at two or more schools. To be eligible, educators must work in a low-income district or service agency in a teacher shortage area.
• Special education teacher: To qualify, these teachers need to work at a public or nonprofit elementary or secondary school in speech and language pathology or audiology, physical therapy, occupational therapy, psychological and counseling services, or recreational therapy.
• Preschool or prekindergarten teacher: Eligible educators must work full-time in a prekindergarten or child-care program and they must have started on or after August 14, 2008.
• Law enforcement, correctional officer, or first responder: These individuals must work five years in their respective fields. Firefighters need to have started on or after August 14, 2008.
• Attorney: Lawyers who work full-time for five years for a federal public or community defender organization may qualify for Perkins loan forgiveness. They must have started on or after August 14, 2008.
• Military: Members of the military may be eligible for up to 50% loan cancellation for four years of military service if their active service ended before August 14, 2008, or up to 100% loan cancellation for five years of service if their active service duty began on or after August 14, 2008.
• Health care: If you’re a full-time nurse or medical technician, or work with people with disabilities, you may qualify for up to 100% Perkins loan cancellation.
Forgiveness Application Process
If you believe you qualify for forgiveness, you’ll need to apply for cancellation or discharge of your Perkins loans. To do this, contact the school that originally issued your Perkins loan or reach out to your loan servicer. They will provide the forms and instructions for the type of cancellation or student loan discharge you may be eligible for. Be aware that you will need to show proof that you work in a qualifying public service job.
Partial vs. Full Cancellation
Perkins loans may be forgiven up to 100% of the amount owed, or up to 70% or 50%. Generally speaking, those employed in certain public service occupations as noted above, who started working before August 14, 2008, may qualify for 50% forgiveness rather than up to 100%. Individuals who worked for four years as AmeriCorps VISTA or Peace Corps volunteers may be eligible for up to 70% Perkins loan cancellation. Check with your loan servicer about the specific details of your forgiveness situation.
If you are eligible for 100% forgiveness, your debt will be forgiven in the following increments over five years, as long as you remain employed in your qualifying job:
• 15% of the original loan amount for first and second years
• 20% of the original loan amount for third and fourth years
• 30% of the original loan amount for the fifth year.
Common Challenges in Obtaining Forgiveness
Obtaining forgiveness can be a demanding process. First, you must meet all the eligibility requirements to qualify. And being approved for forgiveness may take months. In the meantime, you will need to keep paying your Perkins loans to avoid missing payments. If you default on your loans, you may not be eligible for forgiveness.
Perkins Loan Discharge Options
If Perkins loan forgiveness isn’t an option for you, you might qualify for Perkins loan discharge in certain circumstances. These circumstances include:
• Bankruptcy
• Total and permanent disability
• Death
• Your school closed while you were getting your degree
If one of these situations applies to you, you may be eligible for total and immediate discharge of your Perkins loans. Contact your school’s financial aid office or your loan servicer for the forms and instructions to apply for discharge.
Alternatives If You Don’t Qualify for Forgiveness
If you are not eligible for Perkins loan forgiveness, there are other repayment options as well as forgiveness and assistance programs you can explore. Here are some alternatives to Perkins loan forgiveness.
Income-Driven Repayment Plans
Federal income-driven repayment (IDR) plans base your payments on your income and family size and often result in a lower monthly payment. On these plans, your loans may be forgiven after 20 or 25 years of qualifying payments.
While Perkins loans are not eligible for IDR plans, if you consolidate your Perkins loans with a Federal Direct Consolidation Loan, you can then enroll in an IDR plan.
Public Service Loan Forgiveness
Under this program, if you work full-time for a government or nonprofit organization, you may be eligible for forgiveness after 120 qualifying payments under a qualifying repayment plan, such as IDR.
Just as with IDR plans, Perkins loans are not eligible for Public Service Loan Forgiveness unless you consolidate them with a Federal Direct Consolidation Loan.
Student Loan Repayment Assistance Programs
Some states and various organizations offer student loan repayment assistance programs (LRAPs) for those who work in high-need occupations and shortage areas. Check with your state or any professional organizations you belong to to see what LRAPs they might have and if you may qualify.
Student Loan Refinancing
When you refinance student loans, you replace your old loans with a new private loan that ideally has lower rates and more favorable terms if you qualify for them. That could help make your payments more manageable. However, refinancing federal student loans means that you’ll lose access to federal benefits, so make sure you won’t need these programs before moving ahead.
Recommended: Student Loan Payment Calculator
The Takeaway
Borrowers may qualify for Perkins loan forgiveness if they work full-time in certain public service jobs and meet other eligibility requirements. If approved, they may be able to have up to 100% of their Perkins loans forgiven.
If forgiveness isn’t an option for you, there are alternatives that could help you repay your Perkins loans, such as an income-driven repayment plan or a student loan repayment assistance program. Another method to consider is student loan refinancing, especially if you can qualify for a lower interest rate or more favorable terms. Explore all the options available to make an informed decision about the best choice for you.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
What are the eligibility requirements for Perkins loan forgiveness?
To be eligible for Perkins loan forgiveness, borrowers must work full-time in certain public service jobs such as teaching, military service, health care, and law enforcement, for five years, or in certain nonprofit jobs for four years. In addition, each occupation and field has specific requirements. Check with the school that issued your Perkins loan or your loan servicer for more information.
How long does it take to have Perkins loans forgiven?
In most cases, you’ll need to work full-time for five years in specific public service jobs before your Perkins loans are forgiven. Typically, the loans will be forgiven in the following increments: 15% of the original loan amount in the first and second years, 20% in the third and fourth years, and 30% in the fifth year.
Is Perkins loan forgiveness taxable?
Generally speaking, Perkins loan forgiveness is currently not taxable on a federal level. However, that may change. While forgiven student loan debt is typically considered taxable by the IRS, the American Rescue Plan of 2021 made forgiven debt temporarily exempt from federal income taxes. But this federal tax-exempt status only applies to loans forgiven between January 1, 2021 and December 31, 2025.
Photo credit: iStock/Milko
SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOSLR-Q324-030