2808.01.06.01  TEACHING

1.	Defense Loans

References:  34 C.F.R. 674.53; NACUBO/SLCP, p. 45, NASFAA Encyclopedia 
5.10.3.

Maximum cancellation of 50 percent of the loan at the rate of 10 percent per 
year for each year of service in a public or other nonprofit elementary or 
secondary school or institution of higher education.

Maximum cancellation of 100 percent of the loan at the rate of 15 percent per 
year for each year of service in a school with a high concentration of students 
from low-income families.  

2.	Direct Loans

References:  34 C.F.R. 674.54; NACUBO/SLCP, pp. 47-50; NASFAA 
Encyclopedia 5.10.4.

Maximum cancellation of 100 percent of the loan at the rate of 15 percent for 
the first two years, 20 percent for the second two years, and 30 percent for the 
final year for service in a school receiving funds under Title I of the 
Elementary and Secondary Education Act of 1965 (the school must be listed in 
the Directory of Designated Low Income Schools for the specific year of 
service), for teaching of the handicapped, or for teaching in schools operated 
by or under contract with the Bureau of Indian Affairs.