34 C.F.R. § 674.57 Cancellation for law enforcement or corrections officer service—Federal Perkins, NDSL and Defense loans.
Title 34 - Education
(a)(1) An institution must cancel up to 100 percent of the outstanding balance on a borrower's Federal Perkins or NDSL made on or after November 29, 1990, for full-time service as a law enforcement or corrections officer for an eligible employing agency. (2) An institution must cancel up to 100 percent of the outstanding loan balance on a Federal Perkins, NDSL or Defense loan made prior to November 29, 1990, for law enforcement or correction officer service performed on or after October 7, 1998, if the cancellation benefits provided under this section are not included in the terms of the borrower's promissory note. (3) An eligible employing agency is an agency— (i) That is a local, State, or Federal law enforcement or corrections agency; (ii) That is public-funded; and (iii) The principal activities of which pertain to crime prevention, control, or reduction or the enforcement of the criminal law. (4) Agencies that are primarily responsible for enforcement of civil, regulatory, or administrative laws are ineligible employing agencies. (5) A borrower qualifies for cancellation under this section only if the borrower is— (i) A sworn law enforcement or corrections officer; or (ii) A person whose principal responsibilities are unique to the criminal justice system. (6) To qualify for a cancellation under this section, the borrower's service must be essential in the performance of the eligible employing agency's primary mission. (7) The agency must be able to document the employee's functions. (8) A borrower whose principal official responsibilities are administrative or supportive does not qualify for cancellation under this section. (b)(1) To qualify for cancellation under paragraph (a) of this section, a borrower shall work full-time for 12 consecutive months. (2) Cancellation rates are— (i) 15 percent of the original principal loan amount plus the interest on the unpaid balance accruing during the year of qualifying service, for each of the first and second years of full-time employment; (ii) 20 percent of the original principal loan amount plus the interest on the unpaid balance accruing during the year of qualifying service, for each of the third and fourth years of full-time employment; and (iii) 30 percent of the original principal loan amount plus the interest on the unpaid balance accruing during the year of qualifying service, for the fifth year of full-time employment. (Authority: 20 U.S.C. 465) [59 FR 61414, Nov. 30, 1994, as amended at 64 FR 58314, Oct. 28, 1999]
Title 34: Education
PART 674—FEDERAL PERKINS LOAN PROGRAM
Subpart D—Loan Cancellation
§ 674.57 Cancellation for law enforcement or corrections officer service—Federal Perkins, NDSL and Defense loans.
