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(CB-95-24) (CB-95-24) Cover letter for Directory of Designated Low-Income Schools for Teacher Cancellation Benefits for the Federal Perkins Loan and National Direct Student Loan Programs.

DCLPublicationDate: 10/1/95
DCLID: CB-95-24
AwardYear:
Summary: Cover letter for Directory of Designated Low-Income Schools for Teacher Cancellation Benefits for the Federal Perkins Loan and National Direct Student Loan Programs.


OCTOBER 1995


CB-95-24


SUMMARY: Cover letter for Directory of Designated Low-
Income Schools for Teacher Cancellation Benefits for the Federal
Perkins Loan and National Direct Student Loan Programs.

PUBLICATION REFERENCE: This letter supplements information
found in Chapter Six, Section Five of the 1995-96 Federal Student


Financial Aid Handbook.

Dear Financial Aid Administrator:

Enclosed is a copy of the official 1995-96 Directory of Designated
Low-Income Schools for Teacher Cancellation Benefits (Directory).
The Directory contains a list of public and other nonprofit private
elementary and secondary schools designated by the Secretary of
Education as having a high concentration of students from low-
income families (more than 30 percent of the school's enrollment
was counted in the Title I of the Elementary and Secondary
Education Act as amended, funding formula). The Directory lists
those schools in which a borrower may have a portion of his or her
loan payments postponed and cancelled if the borrower teaches full-
time for a complete academic year in a selected elementary or
secondary school during the 1995-96 school year. Please note that
the listing pertains to Federal Perkins Loan Program (Federal
Perkins) borrowers and to National Direct Student Loan Program
(Direct) borrowers. Definitions for the two loan programs are
contained in the governing regulations, 34 CFR, Section 668.2. The
statutory provisions governing the programs specify that the school
must be a public or other nonprofit private elementary or secondary
school that is located in a school district of a local educational
agency that is eligible for assistance under Title I of the Elementary

For Federal Perkins and Direct loans, the Secretary selects schools
with more than a 30-percent enrollment of children counted in the
Title I funding formula. Federal Perkins and Direct loan borrowers
who are full-time teachers in the schools in this listing during the
cancellation of their loans. Federal Perkins and Direct loan
borrowers qualify for 15-percent cancellation if they are completing
their first or second year of teaching in one of the listed eligible
schools, 20-percent cancellation if they are completing their third or
fourth year of teaching in one of the listed eligible schools, and 30-
percent if they are completing their fifth year.

Please note that the Secretary considers all elementary and secondary
schools operated by the Bureau of Indian Affairs (BIA) to qualify as
schools serving low-income students for both Federal Perkins and
Direct loan cancellations. Therefore, these schools are not included
on the list. The Secretary also considers elementary and secondary
schools operated on reservations by Indian tribal groups under
contract with the BIA to qualify; therefore, these schools are also not
listed.

Additionally, if a borrower is teaching in an eligible low-income
institution that does not qualify in a subsequent year as a low-income
institution, the borrower may continue to teach in that institution and
remain eligible to receive a cancellation for service in that institution.

In addition to the Federal Perkins and Direct loan provisions for
cancellation for teaching service performed in low-income schools,
the Federal Perkins and Direct loan programs provide for
cancellation for borrowers who are:

(a) full-time special education teachers in a public or other
nonprofit elementary or secondary school system;

(b) full-time qualified professional providers of early intervention
services in a public or other nonprofit program under public
supervision;

(c) full-time teachers of mathematics, science, foreign languages,
bilingual education, or any other subject-matter field of expertise
that is determined by the State Department of Education to have
a shortage of teachers;

(d) full-time staff member in a Head Start program;

(e) serving in the Armed Forces of the United States in an area of
hostilities that qualifies for special pay under section 310 of
Title 37 of the United States Code;

(f) full-time volunteers under the Peace Corps Act or the Domestic
Volunteer Service Act of 1973 (ACTION programs);

(g) full-time law enforcement officers in an eligible local, State, or
Federal law enforcement agency;

(h) full-time corrections officers in an eligible local, State, or
Federal corrections agency;

(I) full-time nurses providing health care services;

(j) full-time medical technicians providing health care services; and

(k) full-time employees of an eligible public or private nonprofit
child or family service agency who are providing, or supervising
the provision of, services to high-risk children who are from
low-income communities and the families of such children.

Questions pertaining to the Directory should be directed to Pat W.
Reese of the Campus-Based Programs Systems Division, telephone
number (202) 708-5182. Questions pertaining to the eligibility for
cancellation benefits should be directed to Susan M. Morgan of the
Policy Development Division telephone number (202) 708-8242.
Questions pertaining to the eligibility of an elementary or secondary
school to be listed in the Directory should be directed to the
appropriate State agency contact person (list enclosed).

Sincerely,



Leo Kornfeld
Senior Advisor to the Secretary

Enclosures

Last Modified: 09/30/1995