2808.01.06  CANCELLATION

Several kinds of cancellations are available for teaching service, military 
service, or service in a Head Start program.  All these cancellations provide 
for partial cancellation of the loan for each complete year of full-time service.  
Permanent and total disability or death allows for full cancellation of the 
loan.  For teaching, military, and Head Start service, the borrower may 
postpone principal and interest payments for a maximum of twelve months 
pending the cancellation.  The institution should ensure that the forms used 
for application for postponement/ cancellation require sufficient information 
from the borrower (or his or her representative) and from the certifying 
authority to allow verification of postponement/cancellation eligibility.