34 C.F.R. § 674.58 Cancellation for service in a Head Start program.
Title 34 - Education
(a)(1) An institution must cancel up to 100 percent of the outstanding balance on a borrower's NDSL or Federal Perkins loan, for service as a full-time staff member in a Head Start program. (2) An institution must cancel up to 100 percent of the outstanding balance on a Defense loan for service as a full-time staff member in a Head Start program 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) The Head Start program in which the borrower serves must operate for a complete academic year, or its equivalent. (4) In order to qualify for cancellation, the borrower's salary may not exceed the salary of a comparable employee working in the local educational agency of the area served by the local Head Start program. (b) The cancellation rate is 15 percent of the original loan principal, plus the interest on the unpaid balance accruing during the year of qualifying service, for each complete academic year, or its equivalent, of full-time teaching service. (c)(1) “Head Start” is a preschool program carried out under the Head Start Act (subchapter B, chapter 8 of title VI of Pub. L. 97–35, the Budget Reconciliation Act of 1981, as amended; formerly authorized under section 222(a)(1) of the Economic Opportunity Act of 1964). (42 U.S.C. 2809 (a) (1)) (2) “Full-time staff member” is a person regularly employed in a full-time professional capacity to carry out the educational part of a Head Start program. (Authority: 20 U.S.C. 425) [52 FR 45758, Dec. 1, 1987. Redesignated and amended at 59 FR 61413, 61415, Nov. 30, 1994; 64 FR 58314, Oct. 28, 1999]
Title 34: Education
PART 674—FEDERAL PERKINS LOAN PROGRAM
Subpart D—Loan Cancellation
§ 674.58 Cancellation for service in a Head Start program.
