Federal Student Aid - IFAP
   
AwardYear: 1997-1998
EnterChapterNo: 6
EnterChapterTitle: Federal Perkins Loan Program
SectionNumber: 5
SectionTitle: Cancellation
PageNumbers: 51-66


A borrower may have all or part of his or her loan (including
interest) canceled for engaging in public service such as teaching,
service in the education component of a Head Start program, service
in the Peace Corps or ACTION, or service in the military.
Cancellation is also granted in case of the borrower's death, total and
permanent disability, or--in some cases--bankruptcy. Definitions that
apply to cancellation provisions are discussed on pages 6-63 through
6-65.

[["Dear Colleague" Letters CB-93-9, July 1993 and CB-96-8, May
1996]]
The promissory notes in "Dear Colleague" Letter CB-93-9, dated
July 1993, incorporate changes in loan cancellation provisions
required by The Higher Education Amendments of 1992 for Federal
Perkins Loans and National Direct Student Loans (NDSLs) made on
or after July 23, 1992. The U.S. Department of Education issued
reformatted promissory notes in "Dear Colleague" Letter CB-96-8,
dated May 1996.

U.S. ARMY LOAN REPAYMENT PROGRAM

It is useful to know that the U.S. Army offers a loan REPAYMENT
program as an enlistment incentive. If the borrower of a Perkins
Loan or NDSL (or Stafford Loan) serves as an enlisted person in the
U.S. Army, in the Army Reserves, or in the Army National Guard,
the U.S. Department of Defense will repay a portion of the loan. For
more information, the student should contact his or her local military
recruiting office. This is a recruitment program, not a cancellation,
and does not pertain to an individual's prior service.

COMMON CANCELLATION PROCEDURES

Although cancellation provisions vary, depending on whether the
borrower has a Perkins Loan or NDSL, the following procedures
apply to any loan:

- The borrower must apply for cancellation of his or her loan by
obtaining the appropriate cancellation form from the business or
student loan office of the school that made the loan (or from the
school's billing service if it uses one). The Department does not
approve or supply cancellation forms. The form must be submitted
to the school by the deadline the school establishes. The borrower
must provide any documentation the school requests to show that
he or she qualifies for cancellation. For information on
documentation, see the appropriate cancellation category in this
section.

- It is the school's responsibility to determine, based on the
borrower's documentation, whether the borrower is entitled to
have any portion of his or her loans canceled. This responsibility
cannot be delegated.

- No portion of any loan may be canceled for services the borrower
performed either before the date the loan was disbursed or during
the enrollment period covered by the loan.

- Regardless of the repayment status of a loan, the school must
cancel the loan upon receipt of proof of the borrower's death or
upon the school's approval of a borrower's request for cancellation
because of a permanent and total disability.

- Periods of loan deferment for public service that is also qualifying
service for cancellation benefits are considered to run concurrently
with any period for which a loan cancellation for such public
service is granted.

- Defaulted loan amounts are not eligible for cancellation unless the
only reason for the default was the borrower's failure to file a
cancellation request on a timely basis. However, if the school has
accelerated the account by the time the borrower files the
necessary cancellation request forms, only eligible service
performed PRIOR to the date of acceleration can be considered for
cancellation. A borrower is not entitled to cancellation for any
eligible service performed AFTER the date of acceleration.

- No repayment made by a borrower during a period for which the
borrower qualified for a cancellation may be refunded unless the
borrower made the payment because of the school's error. To
reduce the chance of error, a school should keep the borrower
informed of any new cancellation benefits.

- No borrower who has received an education benefit under Subtitle
D of Title I of the National and Community Service Act of 1990
may receive a cancellation of a Perkins Loan or NDSL.

CANCELLATION PROVISIONS COMMON TO ALL LOANS
MADE AFTER JULY 1, 1987

The borrower of a Perkins Loan or NDSL made after July 1, 1987 is
eligible to have up to 100% of the loan canceled for qualifying
service as

[[Teaching in low-income schools]]
- a full-time teacher in a public or nonprofit elementary or
secondary school serving students from LOW-INCOME*1*
families or

[[Teaching handicapped students]]
- a full-time teacher of HANDICAPPED STUDENTS in a public or
nonprofit elementary or secondary school. The majority of the
students the borrower teaches must be handicapped children.*2*

[[Cancellation rates]]
The cancellation rate per completed academic year of teaching is

- 15% of the original principal loan amount--plus the interest that
accrued during the year--for each of the first and second years;

- 20% of the original principal loan amount--plus the interest that
accrued during the year--for each of the third and fourth years; and

- 30% of the original principal loan amount--plus any interest that
accrued during the year--for the fifth year.

[[Service in Head Start]]
A Perkins Loan or NDSL borrower who received the loan on or after
July 1, 1987 is entitled to cancellation of up to 100% of the loan for
qualifying service as a full-time staff member in the educational part
of a preschool program carried out under the Head Start Act. The
cancellation rate is 15% of the original principal loan amount--plus
the interest that accrued during the year--for each complete school
year.

LAW ENFORCEMENT CANCELLATION PROVISION--
SPECIFIC TO LOANS MADE ON OR AFTER NOVEMBER 29,
1990

A borrower is entitled to cancellation of up to 100% of a Perkins
Loan or NDSL made on or after November 29, 1990 for full-time
service as a qualifying law enforcement or corrections officer. The
rates of cancellation for each completed year of service are the same
as those for teachers:

- 15% of the original principal--plus any interest that may have
accrued during the year--for each of the first and second years;

- 20% of the original principal--plus any interest that may have
accrued during the year--for each of the third and fourth years; and

- 30% of the original principal--plus any interest that may have
accrued during the year--for the fifth year.

CANCELLATION PROVISIONS SPECIFIC TO FEDERAL
PERKINS LOANS AND NDSLS MADE ON OR AFTER
JULY 23, 1992

In addition to being eligible for the previously mentioned
cancellation provisions, a borrower of a Perkins Loan or NDSL made
on or after July 23, 1992 is eligible to have up to 100% of the loan
canceled for teaching or qualifying employment as

[[Special education teacher]]
- a full-time special-education teacher, including teachers of
INFANTS, TODDLERS, CHILDREN, OR YOUTH WITH
DISABILITIES*3* in a public or other nonprofit elementary or
secondary school system;

[[Teaching math, science, languages]]
- a full-time teacher in a public or other nonprofit elementary or
secondary school in the fields of mathematics, science, foreign
languages, or bilingual education or in any other FIELD OF
EXPERTISE*3* that is determined by a state education agency to
have a shortage of qualified teachers in that state;

[[Health care]]
- a full-time NURSE*3* or MEDICAL TECHNICIAN*3*
providing health care services;

[[Early intervention]]
- a full-time QUALIFIED PROFESSIONAL PROVIDER OF
EARLY INTERVENTION SERVICES*3* in a public or other
nonprofit program under public supervision; or

[[Employee of child or family service agency]]
- 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 both HIGH-RISK CHILDREN*3* who
are from LOW-INCOME COMMUNITIES*3* and the families of
such children.

For these cancellation provisions, a borrower's loan is canceled at the
rates shown below for each completed year of full-time employment
or services or, in the case of teachers, for each full academic year of
full-time teaching:

- 15% of the original principal loan amount--plus any interest that
may have accrued during the year--for each of the first and second
years;

- 20% of the original principal loan amount--plus any interest that
may have accrued during the year--for each of the third and fourth
years; and

- 30% of the original principal loan amount--plus any interest that
accrued during the year--for the fifth year.

MILITARY SERVICE CANCELLATION--APPLIES TO ALL
LOANS MADE ON OR AFTER JULY 1, 1972

A borrower is also entitled to cancellation of up to 50% of a Perkins
Loan or NDSL for service in the U.S. Armed Forces in an AREA OF
HOSTILITIES or an AREA OF IMMINENT DANGER that
qualifies for special pay under Section 310 of Title 37 of the U.S.
Code. The cancellation rate for every complete year of qualifying
service is 12 1/2% of the original principal loan amount plus any
interest that accrued during the year.

CANCELLATION PROVISIONS SPECIFIC TO PERKINS LOANS

[[Service in Peace Corps or ACTION programs]]
For PERKINS LOANS ONLY, a borrower is entitled to cancel up to
70% of the loan for service as a Peace Corps volunteer or volunteer
under the Domestic Volunteer Service Act (ACTION program); an
authorized official of the Peace Corps or ACTION program must
sign the borrower's cancellation form to certify the borrower's
service. The cancellation rate per year of service is

- 15% of the original principal loan amount--plus any interest that
accrued during the year--for each of the first and second 12-month
periods of service and

- 20% of the original principal loan amount--plus any interest that
accrued during the year--for each of the third and fourth 12-month
periods of service.

DEATH, TOTAL AND PERMANENT DISABILITY, AND
BANKRUPTCY CANCELLATION PROVISIONS--APPLICABLE
TO ALL LOANS

Regardless of the repayment status of a loan, the school that was the
lender must cancel the unpaid balance of the loan, including interest,
upon receipt of proof of the borrower's death or upon the school's
approval of the cancellation request of a borrower who became
permanently and totally disabled after receiving the loan. A
determination of permanent and total disability must be based on
medical evidence certified by a physician (a medical doctor or doctor
of osteopathy, but not a doctor of naturopathic medicine). If a loan is
canceled based on the borrower's permanent and total disability, the
borrower cannot subsequently be required to repay the loan, even if
the borrower's medical condition improves to the point that he or she
is no longer disabled, unless the school can prove that the claim of
disability was fraudulent.

[[Definition of teacher]]
In some cases, a borrower's Perkins Loan or NDSL may be
discharged in bankruptcy. For more information, see "Criteria for
Receiving a Bankruptcy Cancellation" on page 6-62.

CRITERIA FOR TEACHER CANCELLATION

Eligibility for teacher cancellation is based on the duties presented in
an official position description, not on the position title. To receive a
cancellation, the borrower must be teaching full time in a PUBLIC
OR OTHER NONPROFIT ELEMENTARY OR SECONDARY
SCHOOL SYSTEM and must be DIRECTLY EMPLOYED by the
school system. There is no provision for canceling Perkins Loans or
NDSLs for teaching in postsecondary schools.

A teacher is a person who provides to students

- direct classroom teaching;

- classroom-type teaching in a non-classroom setting; or

- educational services directly related to classroom teaching.

Two examples of qualifying individuals for the third category are
school librarians and school guidance counselors.

A supervisor, administrator, researcher, or curriculum specialist is
not a teacher unless he or she primarily provides direct and personal
educational services to students.

A person who provides one of the following services does not
qualify as a teacher unless 1) that person is licensed, certified, or
registered by the appropriate state education agency for that area in
which he or she is providing related special educational services and
2) the services provided by the individual are part of the educational
curriculum for handicapped children:

- speech and language pathology and audiology;

- physical therapy;

- occupational therapy;

- psychological and counseling services; or

- recreational therapy.

For a borrower to be considered as teaching in a field of expertise,
the majority of classes taught must be in the borrower's field of
expertise. A borrower who is teaching in science, mathematics,
foreign language, or bilingual education qualifies for cancellation
even if the state has not designated the subject area in which he or
she is teaching as a shortage area.

For a borrower to be considered as a full-time professional provider
of early intervention services, the borrower must be employed in a
public or nonprofit program under public supervision.

If the borrower teaches both children and adults, the majority of
students must be children for the borrower to qualify for
cancellation.

[[Teacher who is not certified or licensed]]
It is not necessary for a teacher to be certified or licensed to receive
cancellation benefits. However, the employing institution must
consider the borrower to be a full-time professional for the purposes
of salary, tenure, retirement benefits, and so on. In other words, to
qualify, the borrower should accrue the same benefits as teachers
who are licensed and/or certified.

[[Teacher's aide]]
Under certain conditions, a teacher's aide may be considered eligible
for teacher cancellation. The teacher's aide must meet the definition
of a "full-time teacher." He or she must have a bachelor's degree and
be a professional recognized by the state as a full-time employee
rendering direct and personal services in carrying out the
instructional program of an elementary or secondary school.

[[Volunteer teachers]]
Volunteer teachers are not considered to be professionally employed
on a full-time basis and, therefore, are not eligible for teacher
cancellation benefits.

[[Private academy]]
A borrower may receive teacher cancellation for services performed
in a private academy if the private academy has established its
nonprofit status with the Internal Revenue Service (IRS) and if the
academy is providing elementary and/or secondary education
according to state law.

[[School accreditation]]
A private elementary and/or secondary school does not necessarily
need to be accredited for a borrower teaching there to qualify for
teacher cancellation. However, the school must have established its
nonprofit status with the IRS and must be licensed by the state (that
is, must be providing elementary and/or secondary education
according to state law).

A borrower may receive National Defense Student Loan (Defense
Loan) cancellation for teaching in a proprietary institution if that
institution has established its nonprofit status with the IRS.

[[Preschool/prekindergarten programs]]
A borrower may receive teacher cancellation for teaching service
performed in a preschool or prekindergarten program only if the state
considers the program to be a part of its elementary education
program. A low-income-school-directory designation that includes
pre-kindergarten or kindergarten does not suffice for a state
determination of program eligibility. The school must check with the
state superintendant of public instruction to determine whether these
programs are part of the STATE elementary education program.

[[Teaching in Job Corps projects]]
A borrower cannot receive teacher cancellation for teaching service
performed in a Job Corps Project unless the teaching is considered to
be conducted in an elementary or secondary school or school system.

The cancellation form the borrower files must be signed by an
official in the school system or agency to certify the borrower's
service.

The borrower must teach full time for a full academic year or its
equivalent. There is no requirement that a teacher must teach a given
number of hours a day in order to qualify as a full-time teacher; the
employing school is responsible for determining whether or not the
individual is considered to be a full-time teacher. An "academic year
or its equivalent" for teacher cancellation purposes is defined as one
complete school year or two half years that are

- from different school years, excluding summer sessions,

- complete,

- consecutive, and

- generally fall within a 12-month period.

[[Incomplete academic year]]
A borrower who cannot complete the academic year because of
illness or pregnancy may still qualify for cancellation if he or she has
completed the first half of the academic year and has begun teaching
the second half, but the borrower's employer must consider the
borrower to have fulfilled his or her contract for the academic year.

[[Cancellation for a combination of teaching]]
A borrower who is simultaneously teaching part time in two or more
schools may request a cancellation based on teaching full time if he
or she can obtain appropriate certification that he or she is teaching
full time. The postsecondary school that made the loan may grant the
cancellation if an official at one of the schools where the borrower
taught certifies that the borrower taught full time for a full academic
year. For example

- under a consortium agreement, a borrower may be employed by
the consortium and teach at member schools;*4*

- two or more schools, by mutual agreement, could arrange to have
one school employ the borrower on a full-time basis and then hire
out his or her services to the other school(s) involved in the
agreement;*5* or

- a borrower can be considered to have been a full-time teacher for
an academic year if he or she can obtain appropriate certifications
that he or she has taught in two half-time teaching positions for a
complete academic year in two elementary or secondary schools
or in two secondary schools.

A school may refuse cancellation for simultaneous teaching in two or
more schools if it cannot easily be determined that the teaching was
full time.

A cancellation based on teaching in a school serving students from
LOW-INCOME families may be granted only if the borrower taught
in an eligible school that is listed in the Directory of Designated
Low-Income Schools for Teacher Cancellation Benefits. The
Department compiles and publishes this directory of low-income
schools annually after consulting with each state's educational
agency. The Department sends a copy of the directory to each school
that participates in the Perkins Loan Program. The Department
considers a school to be a low-income school only if 1) it is in a
school district that qualifies for federal funding based on the large
number of low-income families in the district and 2) more than 30%
of the school's enrollment is made up of children from low-income
families. The official 1996-97 Directory was issued to schools in
October 1996.

[[Cancellation if school is removed from list]]
If a borrower is teaching at a school that is on the list one year but
not in subsequent years, the borrower may continue to teach in that
school and remain eligible to receive a cancellation for service in that
school. If a list is not available before May 1 of any year, the
Department may use the previous year's list to make the service
determination for that year. Information about specific schools listed
in the directory may be obtained from

Ms. Sherraine Green
Campus-Based Programs Systems Division
Program Systems Service
Office of Postsecondary Education
U.S. Department of Education
600 Independence Avenue, SW, (ROB-3, Room 4051)
Washington, DC 20202-5447

Telephone: 202/708-5774

[[Teaching at BIA schools]]
All elementary and secondary schools operated by the Bureau of
Indian Affairs (BIA) are considered to qualify as schools serving
low-income families for the purpose of teacher cancellations of
Perkins Loans and NDSLs. Elementary and secondary schools
operated on reservations by Indian tribal groups under contract with
the BIA are also considered to qualify for this purpose.

For Perkins Loans or NDSLs made ON OR AFTER July 23, 1992, a
borrower may receive a cancellation as a full-time special education
teacher (including teachers of infants, toddlers, children, or youth
with disabilities) in a public or other nonprofit elementary or
secondary school system.

For Perkins Loans or NDSLs made BEFORE July 23, 1992, a
borrower may receive a cancellation for full-time teaching of
handicapped children for a full academic year or its equivalent. The
borrower qualifies for this cancellation only if a majority of the
students whom the borrower teaches are handicapped children.
Handicapped children include those who are mentally retarded, hard
of hearing, deaf, speech and language impaired, visually disabled,
seriously emotionally disturbed, orthopedically impaired, autistic,
have traumatic brain injury or specific learning disabilities, or are
otherwise health-impaired children who require special education
and related services because of their disabilities.

The ONLY cancellation provisions for service in elementary or
secondary schools are:

- teaching in schools serving low-income families;

- teaching mathematics, science, foreign languages, or bilingual
education;

- teaching in a field of expertise that is determined by a state
education agency to have a shortage of qualified teachers in that
state;

- teaching as a special education teacher; and

- providing early intervention services.

CRITERIA BORROWER MUST MEET FOR MILITARY
CANCELLATION

To qualify for military cancellation, the borrower must be serving a
period of full-time active duty in the armed forces (that is, the U.S.
Army, Navy, Air Force, Marine Corps, or Coast Guard). A member
of the National Guard or the Reserves serving a period of full-time
active duty in the armed forces is also eligible to receive a military
deferment. For a Perkins Loan or NDSL cancellation, the service in
the armed forces must be in an AREA OF HOSTILITIES or an
AREA OF IMMINENT DANGER that qualifies for special pay
under Section 310 of Title 37 of the U.S. Code. For Defense Loan
cancellation, the service does not have to be in an area of hostilities
or area of imminent danger. The borrower's Commanding Officer
must certify the borrower's service dates. The cancellation rate
of 12 1/2% of the original principal loan amount is for each
COMPLETE year of service; service for less than a complete year or
any fraction of a year beyond a complete year does not qualify.

CRITERIA FOR HEAD START CANCELLATION

A full-time staff member is someone who is regularly employed in a
full-time professional capacity to carry out the educational part of a
Head Start program. The program must operate for a full academic
year, or its equivalent, and the borrower's salary may not be more
than that of a comparable employee working in the local educational
agency. An authorized official of the Head Start Program must sign
the borrower's cancellation form to certify the borrower's service.

CRITERIA FOR EMPLOYEE OF A CHILD OR FAMILY
SERVICES AGENCY

To receive loan cancellation for being employed at a child or family
services agency, a borrower must be providing services ONLY to high-
risk children who are from low-income communities. The borrower
may also be providing services to adults, but these adults must be
members of the families of the children for whom services are
provided. The services provided to adults must be secondary to the
services provided to the high-risk children. The Department has
determined that an elementary or secondary school system or a
hospital is not an eligible employing agency.

CRITERIA FOR LAW ENFORCEMENT OR CORRECTIONS
OFFICER CANCELLATION

To establish the eligibility of a borrower for the law enforcement or
corrections officer cancellation provision, the school must determine
that 1) the borrower's employing agency is eligible and that 2) the
borrower's position is essential to the agency's primary mission.

1. A local, state, or federal agency is an eligible employing agency
if it is publicly funded and its activities pertain to crime
prevention, control, or reduction or to the enforcement of the
criminal law. Such activities include, but are not limited to, police
efforts to prevent, control, or reduce crime or to apprehend
criminals; activities of courts and related agencies having criminal
jurisdiction; activities of corrections, probation, or parole
authorities; and problems relating to the prevention, control, or
reduction of juvenile delinquency or narcotic addiction.

Agencies that are primarily responsible for enforcement of civil,
regulatory, or administrative laws are ineligible.

2. For the borrower's position to be considered essential to the
agency's primary mission, he or she must be a full-time employee
of an eligible agency and a sworn officer or person whose
principal responsibilities are unique to the criminal justice system
and are essential in the performance of the agency's primary
mission. The agency must be able to document the employee's
functions.

Individuals whose official responsibilities are supportive, such as
those that involve typing, filing, accounting, office procedures,
purchasing, stock control, food service, transportation, or building,
equipment or grounds maintenance are not eligible for the law
enforcement or correction officer loan cancellation regardless of
where these functions are performed. Also, a borrower employed as
a public defender does not qualify for cancellation benefits under this
provision.

CRITERIA FOR DISABILITY CANCELLATION

Any Perkins Loan, NDSL, or Defense Loan will be canceled if the
borrower dies or becomes permanently and totally disabled after
receiving the loan. Permanent and total disability is the inability to
work and earn money or to attend school because of an impairment
that is expected to continue indefinitely or to result in death.

Even a 95% disability does not qualify the borrower for disability
cancellation. Receiving Social Security disability benefits does not
automatically qualify a borrower for permanent and total disability
cancellation.

If a borrower becomes permanently and totally disabled, the school
must decide whether to cancel the loan based on medical evidence
(certified by a physician) that the borrower or his or her
representative must furnish. This evidence must include statements
from all physicians, hospitals, or agencies concerned with the case
and should include certification that the criteria for permanent and
total disability have been met. If a loan is canceled based on the
borrower's permanent and total disability, the borrower cannot
subsequently be required to repay the loan, even if the borrower's
medical condition improves to the point that he or she is no longer
disabled, unless the school can prove that the claim of disability was
fraudulent. The Department does not approve or supply cancellation
forms. In the case of a borrower's death, the school must receive a
death certificate or other proof as required under state law.

CRITERIA FOR RECEIVING A BANKRUPTCY
CANCELLATION

A Perkins Loan, NDSL, or Defense Loan will be written off for
bankruptcy if the school receives an official notice of discharge from
a bankruptcy court unless the school is required to oppose the
discharge. For more information, see "Bankruptcy" in Section 9 of
this chapter. Note that a borrower is no longer required to reaffirm a
loan discharged in bankruptcy before he or she is eligible to apply
for additional student aid including loans. This is a provision of the
Bankruptcy Amendments Act of 1994, effective October 22, 1994.

REIMBURSING AMOUNTS CANCELED

For Perkins Loans and NDSLs, the Department will reimburse each
school every award year for the principal and interest canceled from
its Perkins Loan Fund for all of the cancellation provisions except for
death, total and permanent disability, and bankruptcy. The school
must deposit in its fund the amount reimbursed. Not that for loans
made on or after July 1, 1993, interest no longer accrues during the
period that a borrower is performing service to qualify for
cancellation benefits.

DEFINITIONS

For Perkins Loans or NDSLs made ON OR AFTER July 23, 1992, new
cancellation provisions include several new terms that have not been
defined previously in the regulations. Definitions of these terms are
as follows:

CHILDREN AND YOUTH WITH DISABILITIES. Children and
youth from ages 3 through 21, inclusive, who require special
education and related services because they have disabilities as
defined in section 602(a)(1) of the Individuals with Disabilities
Education Act;

Section 602(a)(1) defines "handicapped children" as children who
are mentally retarded, hard of hearing, deaf, speech or language
impaired, visually handicapped, seriously emotionally disturbed,
orthopedically impaired, or other health impaired children or
children with specific learning disabilities who by reason thereof
require special education and related services.

EARLY INTERVENTION SERVICES. Those services defined in
section 672(2) of the Individuals with Disabilities Education Act
that are provided to infants and toddlers with disabilities;

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;

INFANTS AND TODDLERS WITH DISABILITIES. Infants and
toddlers from birth to age two, inclusive, who need early
intervention services for specified reasons, as defined in
section 672(1) of the Individuals with Disabilities Education Act;

Section 672(1) of the Act defines infants and toddlers with
disabilities as those who

- have a diagnosed physical or mental condition which has a high
probability of resulting in developmental delay or

- are experiencing developmental delays, as measured by
appropriate diagnostic instruments and procedures in one or
more of the following areas: cognitive development, physical
development, language and speech development, psychosocial
development, or self-help skills.

The term INFANTS AND TODDLERS WITH DISABILITIES
may also include, at a state's discretion, individuals from birth to
age two, inclusive, who are at risk of having substantial
developmental delays if early intervention services are not
provided;

LOW-INCOME COMMUNITIES. Communities in which there is
a high concentration of children eligible to be counted under
Title I of the Elementary and Secondary Education Act of 1965, as
amended;

MEDICAL TECHNICIAN. An allied health professional (working
in fields such as therapy, dental hygiene, medical technology, or
nutrition) who is certified, registered, or licensed by the
appropriate state agency in the state in which he or she provides
health care services; an allied health professional is someone who
assists, facilitates, or complements the work of physicians and
other specialists in the health care system;

NURSE. A licensed practical nurse, a registered nurse, or other
individual who is licensed by the appropriate state agency to
provide nursing services;

QUALIFIED PROFESSIONAL PROVIDER OF EARLY
INTERVENTION SERVICES. A provider of services, as defined
in section 672(2) of the Individuals with Disabilities Education
Act;

Section 672(2) of that Act defines developmental services as those
services that

- are provided under public supervision;

- are provided at no cost except where federal or state law
provides for a system of payments by families, including a
schedule of sliding fees;

- are designed to meet a handicapped infants's or toddler's
developmental needs in any one or more of the following areas:

- physical development;

- cognitive development;

- language and speech development;

- psychosocial development; or

- self-help skills;

- meet the standards of the state, including the requirements of
this part;

- include:

- family training, counseling, and home visits;

- special instruction;

- speech pathology and audiology;

- occupational therapy;

- physical therapy;

- psychological services;

- case management services;

- medical services only for diagnostic or evaluation purposes;

- early identification, screening, and assessment services; and

- health services necessary to enable the infant or toddler to
benefit from the other early intervention services;

- are provided by qualified personnel, including

- special educators;

- speech and language pathologists and audiologists;

- occupational therapists;

- physical therapists;

- psychologists;

- social workers;

- nurses; and

- nutritionists; and

- are provided in conformity with an individualized family
service plan adopted in accordance with Section 677 of the
Individuals with Disabilities Education Act.

TEACHING IN A FIELD OF EXPERTISE. The majority of
classes taught are in the borrower's field of expertise.


*1* See the definition of this term at the end of this section. An
official Directory of designated low-income schools is published
annually by the Department.

*2* For loans made on or after July 23, 1992, this provision has been
replaced by the "special education teacher" cancellation provision. A
teacher of handicapped students/special education teacher is not
required to teach in a low-income school to be eligible for
cancellation.

*3* See the definitions of these terms at the end of this section.

*4* The consortium provides the certification of full-time teaching.

*5* The employing school certifies the borrower's full-time teaching
status.