Child or Family Services

Applies only to Federal Perkins Loans and National Direct Student Loans made on or after July 23, 1992.

This type of partial cancellation is for service as a full-time employee of an eligible public or private nonprofit child or family service agency who is providing or supervising the provision of services to high-risk children* who are from low-income communities** and the families of such children. The main focus of the service must be the children. The borrower cannot be providing services to adults unless the adults are simply family members of the children for whom the services are being provide. (Example: Finding homes for homeless families does not qualify for this type of cancellation as it is the responsibility of the adults in a family to provide a home. While the children, in this case, are greatly benefited, this type of service would actually have been provided to the adult, not the children.)

**Eligibility and Rates**
Eligible Loans	Federal Perkins Student Loan
Maximum %	100% of original principal loan amount plus any interest that may have accrued during the year
Maximum Years	5 years
1st & 2nd Year %	15% of original principal loan amount plus any interest that may have accrued during the year
3rd & 4th Year %	20% of original principal loan amount plus any interest that may have accrued during the year
5th Year %	30% of original principal loan amount plus any interest that may have accrued during the year

*High-risk children: Individuals under the age of 21 who are low-income or at risk of abuse or neglect, have been abused or neglected, have serious emotional, mental, or behavioral disturbances, reside in placements outside their homes, or are involved in the juvenile justice system.

**Low-income community: A community in which there is a high concentration of children eligible to be counted under Chapter 1 of Title I of the Elementary and Secondary Education Act of 1965, as amended.