In this series, we take a high-level look at popular Federal and State-based financial assistance programs. They are designed to help you tackle the costs of your nursing education. These benefits can be determined based on the area in which you live, position (whether you are an RN, or a Nurse Practitioner, etc.), and level of education.
Below is some basic guidelines around the Perkins Loan Cancellation Program. In short, repayment benefits are paid based on your length of service. However, there are many requirements and restrictions that apply. Please be sure to investigate the options thoroughly to ensure you are eligible and can take advantage of forgiveness benefits.
Perkins Loan Cancellation Program
This is very much like other Federal School Loans Forgiveness Programs. The Perkins Loan Cancellation Program removes some portion of your student debt once you satisfy the eligibility conditions of the program. In fact, Perkin’s forgiveness for nursing provides debt forgiveness for both the original principal amount of your school loans, as well as the accumulated interest. Only Perkins loans are available for it, so you’d have to plan to use this one in advance of taking on debt.
Benefits Overview
- 15% of the Principal School Loans + Interest Cancelled after 1 and 2 Years of Full Time Employment
- 20% of the Principal Loan + Interest Cancelled after 3 and 4 Years of Full Time Employment
- 30% of the Principal Loan + Interest Cancelled after 5 Years of Full Time Employment
- The potential to receive total cancellation benefits (with 100% of your school loans forgiven) after 5 years of medical service
Eligibility
RNs, LPNs, CNAs, MAs, ARNPs as well as Licensed Medical Technicians qualify for this program. Licensed Medical Technicians must be certified, registered, or licensed by a state agency under which they provide health care services, and they must fit the definition of being someone who “assists, facilitates, or complements the work of physicians or other healthcare specialists”.
As of Oct. 7, 1998, all Perkins Loan borrowers are eligible for all cancellation benefits regardless of when the loan was made or the terms of the borrower’s promissory note. However, this benefit is not retroactive to services performed before Oct. 7, 1998. Specifically eligible loans made on or after July 23, 1992, and loans made prior to July 23, 1992, for service starting October 7, 1998.
