Federal Perkins Loan Program

Enclosure C
+(,121/,1(
Citation: 59 Fed. Reg. 61413 1994
Provided by:
National Library of Education

34 CFR Part 674; et al.
Federal Perkins loan Program, Federal
Work-Study Programs, and Federal
Supplemental Educational Opportunity
Grant Program; Final Rule

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Federal Register / Vol. 59, No. 229 / Wednesday November 30. 1994 / Rules and Regulations 61413
(e) Early intervention services. Those
services defined in section 672(2) of the
Indivtuals with Disabilities Education
Act that are provided to infants and
toddlers with disabilities.

paragraph (c); bv revising paragraph (d);
and by adding new paragraph (e) to read
as follows:

(h) 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.
(i) Infants and toddlers with
disabilities:Infants and toddlers from
birth to age 2, inclusive, who need early
intervention services for specified
reasons, as defined in section 672(1) of
the Individuals with Disabilities
Education Act.

(b) Part-timeemployment. (1)(i)
(ii) An institution may refuse a
request for cancellation based on a
claim of simultaneous employment as a
nurse or medical technician in two or
more facilities if it cannot determine
easily from the documentation supplied
by the borrower that the combined
employment is full-time. However, it
shall grant the cancellation if one
facility official certifies that a nurse or
medical technician worked full-time for
a full year.
(c) Cancellationof a defaulted loan.
(1) *-

(k)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.
(1) 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.
(in) Nurse: A licensed practical nurse,
a registered nurse, or other individual
who is licensed by the appropriate State
agency to provide nursing services.
(n) Qualified professionalprovider of
earlyintervention services:A provider
of services as defined in section 672(2)
of the Individuals with Disabilities
Education Act.
(q)
(3)
(i) Speech and language pathology
and audiology(ii) Physical therapy(iii) Occupational therapy(iv) Psychological and counseling
services; or
(v) Recreational therapy.
(r) Teaching in a field of expertise:
The majority of classes taught are in the
borrower's field of expertise.
34. Section 674.52 is amended by
adding a heading to paragraph (b); by
redesignating paragraph (b)(1) as
(b)(1)(i); by adding new paragraph
(b)(1)(ii); by adding a heading to

§ 674.52 Cancellation procedures.

(d) Concurrentdeferment period. (1)
For loans made prior to July 1, 1993, the

Secretary considers a borrower's loan
deferment under §§ 674.35, 674.36, and
674.37 to run concurrently with any
period for which a cancellation for
military Peace Corps, or ACTION
program service is granted.
(2) For loans made on or after July 1,
1993, the Secretary considers a
borrower's loan deferment under
§ 674.34 to run concurrently with any
period for which a cancellation under
§§ 674.53, 674.56, or 674.57 is granted.
(e) National community service. No
borrower who has received a benefit
under subtitle D of title I of the National
and Community Service Act of 1990
may receive a cancellation under this
subpart.
§§ 674.53 and 674.54 [Redesignated as
§§ 674.54 and 674.55]
§9674.55 through 674.60 [Redesignated as
99 674.58 through, 674.63]
35. Sections 674.55 through 674.60
are redesignated as §§ 674.58 through
674.63 respectively; §§ 674.53 and
674.54 are redesignated as §§ 674.54 and
674.55 respectively- and a new § 674.53
is added to read as follows:

§ 674.53 Teacher cancellation-Federal

Perkins loans and Direct loans made on or
after July 23, 1992.
(a) Cancellationforfull-time teaching
in an elementaryor secondary school
serving low-income students. (1) An
institution shall cancel up to 100
percent of the outstanding loan balance
on a Federal Perkins loan or a Direct
loan made on or after July 23, 1992, for
full-time teaching in a public or other
nonprofit elementary or secondary
school that(i) Is in a school district that qualified
for funds, in that year, under title I of

the Elementary and Secondary
Education Act of 1965, as amended, and
(ii) Has been selected by the Secretary
based on a determination that more than
30 percent of the school's total
enrollment is made up of title I
children.
(2) For each academic year, the
Secretary notifies participating
institutions of the schools selected
under paragraph (a) of this section
(3) (i) The Secretary selects schools
under paragraph (a)(1) of this section
based on a ranking by the State
education agency.
(ii) The State education agency shall
base its ranking of the schools on
objective standards and methods. These
standards must take into account the
numbers and percentages of title I
children attending those schools.
(iii) For each academic year, the
Secretary notifies participating
institutions of the schools selected
under paragraph (a) of this section.
(4) The Secretary considers all
elementary and secondary schools
operated by the Bureau of Indian Affairs
(BIA) or operated on Indian reservations
by Indian tribal groups under contract
with BIA to qualify as schools serving
low-income students.
(5) A teacher, who performs service in
a school that meets the requirement of
paragraph (a)(1) of this section in any
year and in a subsequent year fails to
meet these requirements, may continue
to teach in that school and will be
eligible for loan cancellation pursuant to
paragraph (a) of this section in
subsequent years.
(6) If a list of eligible institutions in
which a teacher performs services under
paragraph (a)(1) of this section is not
available before May 1-of any year, the
Secretary may use the list for the year
preceding the year for which the
determination is made to make the
service determination.
(b) Cancellationfor full-time teaching
in special education.An institution
shall cancel up to 100 percent of the
outstanding balance on a borrower's
Federal Perkins loan or Direct loan
made on or after July 23, 1992, for the
borrower's service as a full-time special
edication teacher of infants, toddlers,
children, or youth with disabilities, in a
public or other nonprofit elementary or
secondary school system.
(c) Cancellationforfull-time teaching
in fields of expertise. An institution
shall cancel up to 100 percent of the
outstanding balance on a borrower's
Federal Perkins loan or Direct loan
made on or after July 23, 1992, for fulltime teaching in mathematics, science,
foreign languages, bilingual education,
or any other field of expertise where the

61414 Federal Register / Vol. 59, No. 229 / Wednesday November 30, 1994 / Rules and Regulations
State education agency determines that
there is a shortage of qualified teachers.
(d) Cancellationrates.(1) To qualify
for cancellation under paragraph (a), (b),
or (c) of this section, a borrower shall
teach full-time for a complete academic
year or its equivalent.
(2) Cancellation rates are(i) 15 percent of the original principal
loan amount plus the interest on the
unpaid balance accruing during the-year
of qualifying service, for each.of the first
and second years of full-time teaching;
(ii) 20 percent of the onginal principal
loan amount, plus the interest on the
unpaid balance accruing during the year
of qualifying service, for each of the
third and fourth years of full-time
teaching; and
(iii) 30 percent of the original
principal loan amount, plus the interest
on the unpaid balance accruing during
the year of qualifying service, for the
fifth year of full-time teaching.
(e) Teaching in a school system. The
Secretary considers a-borrower to be
teaching in a public or other nonprofit
elementary or secondary school system
only if the borrower is directly employed by the school system.
(f) Teaching children and adults. A
borrower who teaches both adults and
children qualifies for cancellation for
this service only if a majority of the
students whom the borrower teaches are
children.

(ii) Has been selected by the Secretary
based on a determination that more than
30 percent of the school's total
enrollment is made up of title I
children.

nonprofit child or family servce agency.
An institution shall cancel up to 1q9
percent of the outstanding balance on a
borrower's Federal Perkins loan or
Direct loan made on or after July 23,
1992, for service as a full-time employee
(4) A teacher, who performs service in in a public or private nonprofit child or
family service agency who is providing,
a school that meets the requirement of
or supervising the provision of, services
paragraph (a)(1) of thins section in any
to high-risk children who are from lowyear and in a subsequent year fails to
income communities and the, families of
meet these requirements, may continue
such children.
to teach in that school and will be
(c) Cancellationfor servwce as a
eligible for loan cancellation pursuant to
qualified professionalprowderof early
paragraph (a) of this section, in
intervention services..An institution
subsequent years.

shall cancel up to 100 percent of the
(5) If a list of eligible institutions in
which a teacher performs services under outstanding balance on a borrower's
Federal Perkins loan or Direct loan
paragraph (a)(1) of this section is not
made on or after July 23, 1992, for the
available before May I of any year, the
borrower's service as a full-time
Secretary may use the list for the year
qualified professional provider of early
preceding the -year for which the
intervention services in-a public or
defermination is made to make the
other nonprofit program under public
service determination.
(b) Cancellationfor full-time teacung -supervision by the lead agency as
authorized in section 676(b)(9) of the
of the handicapped.(1) An institution
Individuals With Disabilities Education
shall cancel up to 100 percent of the
Act.
outstanding balance on a borrower's
(d) Cancellationrates.(1) To qualify
Federal Perkins loan or Direct loan
for cancellation under paragraphs (a),
made before July 23, 1992, for full-time
(1), and (c) of this section, a borrower
teaching of handicapped children in a
must work full-time for 12 consecutive
public-or other nonprofit elementary or
months.
secondary school system.

36. Redesignated § 674.54 is amended
by revising the heading of the section;
by revising paragraph (a)(1); by
removing paragraph (a)(2); by
redesignating paragraphs (a)(3) and
(a)(4) as paragraphs (a)(2) and (a)(3)
respectively; by removing the term
"Chapter 1" and adding inits place
"title I" in redesignated paragraph
(a)(2); by adding new paragraphs (a)(4)
and (a)(5); by revising paragraph (b)(1);
and by revising the authority citation to
read as follows:

(Authority: 20 U.S.C. 1087ee)
37 Redesignated section 674.55 is
amended by revising paragraph (b)(1)(i);
by removing paragraph (b)(2); by
redesignating paragraphs (b)(3), (b)(4),
(b)(5), and (b)(6) as paragraphsj(b)(2),
(b)(3), (b)(4), and (b)(5), respectivelyand by removing the term "Chapter 1.
and adding in its place "title I" in
redesignated paragraph (b)(2)(ii) to readas follows:
(b)
.
(1)
(i) Is in a school district that qualifies
for funds in that year under title I of the
Elementary and Secondary Education
Act of 1965, as amended; and

§ 674.54 Teacher cancellation-Federal
Perkins loans and Direct loans made before
July 23, 1992.

38. A new § 674.56 is added to read
as follows:

(Authority. 20 U.S.C 1087ee)

(a) Cancellationforfull-time teaching
in an elementary or secondaryschool
serving low-income students. (1) An
institution shall cancel up to 100

percent of the outstanding loan balance
on a Federal Perkins loan or a Direct
loan made before July 23, 1992, for fulltime teaching in a public or other
nonprofit elementary or secondary
school that(i) Is in a school district that qualifies
for funds, in that year, under title I of
the Elementary and Secondary
Education Act of 1965, as-amended; and

§ 674.56 .Employment cancellationFederal Perkins loans and Direct loans
made on or after July 23, 1992.
(a) Cancellationfor full-time
employment as a nurse or medical
technician.An institution shall cancel
up to 100 percent of the outstanding
balance on a borrower's Federal Perkins
or Direct loan made on or after July 23,
1992, for full-time employment as a
nurse or medical technician providing
health care services.
(b) Cancellationfor full-time
employment in a public or private

(2) Cancellation rates are(i) 15 percent of the original pnncipal
loan amount plus the interest on the
unpaid balance accruing during the year
of qualifying service, for each of the first
and second years of full-time
employment;
(ii) 20 percent of the original pnncipal
loan amount plus the interest on the
unpaid balance accruing during the year
of qualifying service, for each of the.
third and fourth years of full-time
employment; and
(iii) 30 percent of the original
principal loan amount plus the interest
on the unpaid balance accruing during
the year of qualifying service, for the
fifth year of full-time employment.
(Authority: 20 U.S.C. 1087ee)

39. A new § 674.57 is added to read
as follows:

§ 674.57 Cancellation for law enforcement
or corrections officer service--Federal

Perkins loans and Direct loans for loans
made on or after November 29, 1990.

(a)(1) An institution shall cancel up to
100 percent of the outstanding balance
on a borrower's Federal Perkins loan or
Direct loan made on or after November
29, 1990, for full-time service as a law
enforcement or corrections officer for an
eligible employing agency.
(2) An eligible. employing agency is an
agency(i) That is a local, State, or Federal
law enforcement or corrections agency-