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Colorado State University

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FPL - Cancellation & Deferment

Location: 1st Floor Howes Street Business Center    Mailing Address: 6024 Campus Delivery, Fort Collins,CO 80523-6024   Physical Address: 555 S Howes St, 1st Floor

Business Hours:

Summer: 7:30-4:30 MTWF & 8:30-4:00 on Thursday
Fall/Spring: 7:45-4:45 MTWF & 8:30-4:00 on Thursday

Phone: 970-491-2767
Fax: 970-491-2452

Email: AROperations@colostate.edu
Phone: (970) 491-2697
Fax: (970) 491-2452

ChalkBoard

Cancellation and Deferment of Perkins Loan Payment

Deferment is a period when interest does not accumulate and payments on the principal balance need not be paid. Borrowers who qualify for deferment must submit a completed deferment form. After each deferment, the borrower is entitled to a post-deferment grace period of six months.

Eligibility: An assessment is completed on each student loan to determine eligibility. The Student Loans Office must receive completed deferment forms and copies of supporting documentation before your account will be reviewed. If you are granted a deferment all late charges must be paid before your account can go into deferment status.

In School/ Attending another University

Student Deferment

A borrower may defer scheduled payments while enrolled at least half-time as a regular student in an eligible institution of higher education (or comparable Department of Education-approved institution outside of the United States) for the purpose of obtaining a degree or certificate.

You must notify and request a "Student Deferment" for each term you are enrolled at another university. You can call us (970) 491-6467, ask us for a "Student Deferment", and we will be able (in most cases) to verify your enrollment at another institution by checking an on-line website or you may submit a school deferment form each term that you are attending another Institution.

Application forms and other paperwork due dates are as important as payment due dates. If your paperwork is not received by the due date, you are responsible for payment and late fees as applicable.

You must continue to make scheduled loan payments until you receive confirmation of your deferment or forbearance status.
Download School Deferment form.

Forbearance

Forbearance is a temporary cessation of your student loan payments. Under the terms and conditions of forbearance, principal is deferred for six months in order to relieve your financial situation. At the end of the forbearance period, your regular monthly payments will resume. Interest does accrue on your principal balance while your account is in forbearance. Your accrued interest will be due at the end of your six month forbearance term unless you indicate in writing that you would like to pay your accrued interest monthly.

All late fee charges must be paid before you can qualify. Please call 970.491.6467 for your account balance.

Download Forbearance Application

Graduate Fellowship

A borrower may defer repayment if he/she is enrolled and in attendance as a regular student in a course of study that is part of a graduate fellowship program approved by the Department, including graduate or postgraduate fellowship supported study (such as Fullbright grant) outside the U.S. In order to be eligible you must provide certification that you are engaged in a full-time course of study and in an approved graduate fellowship program.

Download Graduate Fellowship Deferment form

Unemployed/ Seeking Employment

A borrower may defer repayment on a Perkins Loan for 6 month increments up to a 3 year maximum, regardless of disbursement date and contrary to provisions on the promissory note, if the borrower is able to provide documentation that they are actively seeking and unable to find full-time employment.

Download Unemployed/Seeking Employment Deferment form

Economic Hardship

A borrower is entitled to economic hardship deferment for periods of up to one year at a time, not to exceed three years cumulatively, if the borrower provides the University with satisfactory documentation.

Download Economic Hardship Deferment form

Peace Corps or Vista

Only Federal Perkins Loan borrowers are entitled to cancellation for service as a volunteer under the Peace Corps Act and the Domestic Volunteer Service Act of 1973. A borrower may receive cancellation of up to 70% of the outstanding balance on his or her loan. The loans are canceled at a rate of 15% for each of the first and second 12-month periods of service and 20% for the third and fourth years of service. Please contact the CSU Student Loans Receivable office for information on how to apply for this type of forbearance.

Teacher Cancellations - Perkins

Teacher Cancellation Provisions Perkins Loan
(Made after 6/30/87)
Perkins or Direct
(Made after 7/22/92)
Full-time teacher in math, science, foreign languages, bilingual ed, or in other fields designated as teacher shortage areas
** Teachers of math, science, foreign language, bilingual education, or any other field of expertise where the state education agency determines that there is a shortage of qualified teachers. The borrower must be employed full-time for a complete academic year in a public or other nonprofit elementary or secondary school and the majority of classes taught must be in the borrower's field of expertise. **
None 15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs
Full-time teaching handicapped children
** Borrowers are eligible for full loan cancellation for full-time teaching of handicapped children. **
15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs 15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs
Full-time teaching in special education
** This cancellation only applies to Federal Perkins or National Direct loan borrowers with funds advanced on or after July 23, 1992. It includes teachers of infants, toddlers, children, or youth with disabilities in a public or other nonprofit or secondary school system. **
None 15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs
Full-time teaching in low-income schools
** Borrowers are eligible for full loan cancellation for full-time teaching in qualifying elementary or secondary schools listed each year by the Education Department as serving low-income students. A borrower who is teaching in an eligible low-income institution that does not qualify in a subsequent year as a low-income institution is eligible to continue receiving cancellation for services in that institution. **
15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs 15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs
Full-time teaching in elementary, secondary, or higher education schools not listed as special subject above None None
Full-time faculty teaching at a Tribal College or University, on or after 08/14/2008 None 15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs

Other Employment Cancellations

Types of Employment Perkins Loan (Made after 6/30/87) Perkins or Direct (Made after 7/22/92)
Nurses and Medical Technicians providing Health Care Services
** Colorado State University may cancel up to 100% of a borrower's Federal Perkins or National Direct Loan made on or after July 23, 1992, for full-time employment as a licensed practical or registered nurse or other individual who is licensed by the appropriate state agency to provide nursing services. A medical technician is also eligible for cancellation if he or she is working in such health-care fields as therapy, dental hygiene, medical technology, or nutrition and has been certified, registered or licensed by the appropriate state agency in the state in which he or she works. A medical technician is someone who assists, facilitates, or complements the work of physicians and other specialists in the health care system. **
None 15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs
Full-time employee of a public or nonprofit child or family service agency, providing services to high-risk children from low-income communities and their families
** Borrowers with Federal Perkins and National Direct Student Loans made after July 23, 1992, are eligible for this cancellation if they provide or supervise the provision of services to high-risk children who are from low-income communities and the families of those children. The Department of Education has determined that an elementary or secondary school system or a hospital is not an eligible employing agency. **
None 15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs
Full-time qualified professional provider of early intervention services, defined in section 632(4) of the Individuals with Disabilities Education Act (IDEA), that are provided to infants and toddlers with disabilities.
** A Borrower with a Federal Perkins and National Direct Loan made after July 23, 1992, may receive up to 100% cancellation on the outstanding balance of his or her loan as a qualified professional provider of early intervention services. The borrower must be employed in a public or other nonprofit program under supervision by the lead agency.
Early Intervention Services are those services defined in section 632(4) of the Individuals with Disabilities Education Act (IDEA) that are provided to infants and toddlers with disabilities.
Infants and Toddlers under age 3, inclusive, who need early intervention services for specified reasons, as defined in Section 632(5) of the IDEA. **
None 15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs
Service in U.S. Armed Forces in an area of hostility
** Federal Perkins Loan borrowers are eligible for military service cancellation on completing a full year (12 months) of service on active duty in an area of hostilities or eminent danger. Borrowers who serve as members of the branch of the U.S. Army, Navy, Air Force, Marine Corps, or Coast Guard may have up to 50 percent of their Federal Perkins Loans canceled for service in areas of hostilities that qualify for special pay. Contact your military recruiter for more information. **
12.5% per yr up to 50%; 4 yr Max 12.5% per yr up to 50%; 4 yr Max. After 08/14/2008 up to 100% may be eligible.
Full-time law enforcement (advances on or after 11/29/90).
Who is Eligible?
This cancellation benefit is available to borrowers with a Federal Perkins and National Direct Loan made on or after November 29, 1990. The borrower must be employed full-time as a sworn law enforcement or corrections officer or a person whose principal responsibilities are unique to the criminal justice system at an eligible employing agency. An eligible employing agency is a publicly funded local, state or federal law enforcement or corrections agency with principal activities pertaining to crime prevention, control, or reduction, or the enforcement of criminal law and problems relating to the prevention, control, or reduction of juvenile delinquency or narcotic addiction.
Who is Eligible?
  • Agencies that are primarily responsible for enforcement or civil, regulatory, or administrative laws are not eligible.
  • Individuals whose official responsibilities are supportive, such as those that involve typing, filing, accounting, office procedures, purchasing, food service, transportation, or maintenance are not eligible.
  • Borrowers employed as public defenders do not qualify.
15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs 15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs
Full-time service as staff member in a Head Start program.
** A Federal Perkins and National Direct Loan borrower is eligible for full cancellation of his or her loan for service as a full-time staff member in a Head Start program if the program operates for a complete academic year or its equivalent and the borrower's salary does not exceed the salary of a comparable employee working in a local educational agency of the area served by the program. The cancellation rate is 15 percent per year of full-time service. **
15% per year up to 100%; 15% per year up to 100%;
Full-time Peace Corps / VISTA Volunteer Services
** Only Federal Perkins Loan borrowers are entitled to cancellation for service as a volunteer under the Peace Corps Act and the Domestic Volunteer Service Act of 1973. A borrower may receive cancellation of up to 70% of the outstanding balance on his or her loan. The loans are canceled at a rate of 15% for each of the first and second 12-month periods of service and 20% for the third and fourth years of service. Please contact the CSU Student Loans Receivable office for information on how to apply for this type of forbearance. **
15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 15% 1st and 2nd yrs; 20% 3rd and 4th yrs;
Total and Permanent Disability; Death; Qualified Bankruptcy.
Definitions:
  • A conditional discharge due to a total and permanent disability allows you to stop making payments on your loan(s) during the conditional discharge period while the Department of Education evaluates your eligibility for a final discharge. The conditional discharge period begins on the date that you became totally and permanently disabled, as certified by the physician who completes Section 3, and lasts for up to three years. The conditional discharge period ends when the Department of Education either grants a final discharge or determines that you do not qualify for a final discharge. During the conditional discharge period, the Department of Education will monitor your eligibility for a final discharge.
  • A final discharge due to a total and permanent disability condition cancels your obligation to repay the remaining balance on your Perkins Loan Program. The Department of Education grants a final discharge if you meet certain conditions during and at the end of the conditional discharge period.
  • If you have a total and permanent disability, this means that you are unable to work and earn money because of an injury or illness that is expected to continue indefinitely or result in death; And
  • You cannot be considered to have a total and permanent disability if your condition existed at the time your loan(s) was made, unless your condition has substantially deteriorated so that you are now totally and permanently disabled.
Loan Discharge Process / Terms and Conditions for Loan Discharge
If Colorado State University determines, based on a review of your loan discharge application, that you appear to meet the eligibility requirements for a loan discharge based on total and permanent disability, your loan(s) will be assigned to the Department of Education. To qualify for a final discharge, you must meet the following conditions during and at the end of the conditional discharge period;
  • Your condition must not have existed at the time your loan(s) was made, unless your condition has substantially deteriorated so that you are now totally and permanently disabled.
  • Your annual earnings from employment must not exceed the poverty line amount for a family of two in your state (regardless of your actual family size), and
  • You must not receive a new loan under the FFEL Program, the Perkins Loan Program, or the Direct Loan Program.
NOTE: A physician cannot certify that you have a total and permanent disability if, at the time of the physician’s certification, you are able to work and earn money in any capacity. However, if you attempt to work during the conditional discharge period, you may earn up to the poverty line amount each year during that period.

Death Cancellation
The outstanding loan principal plus all accrued interest and penalty changes are considered canceled when proof of a borrower's death, such as an official death certificate, is provided to Colorado State University, Student Loans Receivable.
Qualified Bankruptcy
Perkins Loans are non-dischargeable. They will be put into deferment status until your bankruptcy is discharged. Interest will continue to accrue on your student loan account and will be due upon discharge.
100% 100%
Full-time Firefighter, loans made on or after 08/14/2008. None 15% 1st and 2nd yrs; 20% 3rd and 4th yrs; 30% 5th yrs
Librarian None Please call our office for info
Speech Pathologist None Please call our office for info

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