Loan Forgiveness for Teachers
The purpose of this information is to introduce students to some possible loan forgiveness programs and tax savings options. It is not intended as representation that any student will qualify for a loan forgiveness program or tax savings. Students should contact their student loan holder or the IRS for the most current information on these programs.
Student Loan Forgiveness
General Information about Loan Forgiveness for Teachers:
This information was obtained from http://www.mapping-your-future.org/paying/loanForgiveDetails.htm#teachersForgiveness on August 2006.
Certain teachers who have outstanding Federal Stafford or Consolidation Loans may be eligible to have a portion of their loans forgiven (in other words, they won't have to repay that portion of the debt). There are two different teacher loan forgiveness maximums--$5,000 and $17,500--each with their own set of eligibility criteria (provided below).
To qualify for teacher loan forgiveness for Federal Stafford or Consolidation Loans of up to $5,000, teachers must meet all of the following criteria:
- You must not have had an outstanding balance on a Federal Family Education Loan (FFEL) Program or Federal Direct Program loan as of October 1, 1998 or on the date you obtained a FFEL Program or Federal Direct Program loan after October 1, 1998.
- You must have taught full time at a designated school for five consecutive, complete academic years. At least one of the years of teaching service must be after the 1997-98 academic year.
- The loan for which you are requesting forgiveness must have been made before the end of your fifth year of qualifying teaching service.
- You must have performed your teaching service at an elementary or secondary school in a low-income school district that is listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.
- If you performed your teaching service in an elementary school, the chief administrative officer of the school where you performed the service must certify that you demonstrated knowledge and teaching skills in reading, writing, mathematics, and other areas of the elementary school curriculum.
- If you performed your teaching service in a secondary school, the chief administrative officer of the school where you performed the service must certify that you taught in a subject area that was relevant to your academic major.
- If your teaching service began on or after October 30, 2004, you must meet this additional criteria: The chief administrative officer of the school where you performed your service must certify that you meet the definition of "highly qualified" as defined in the No Child Left Behind Act of 2001.
To qualify for up to $17,500 in forgiveness for Federal Stafford or Consolidation Loans, you must meet all of the criteria above, as well as the following additional criteria:
- You must have been either (1) employed full time as a highly qualified mathematics or science teacher in an eligible secondary school, or (2) employed full time as a highly qualified special education teacher whose primary responsibility was to provide special education to children with disabilities in an eligible elementary or secondary school.
- The chief administrative officer of the school where you performed your service must certify that you meet the definition of "highly qualified" as defined in the No Child Left Behind Act of 2001.
To apply for teacher loan forgiveness or for more information about the program related to the Federal Family Education Loan Program or Federal Direct Loan Program, contact your loan holder.
Certain teachers who have outstanding Federal Perkins Loans may be eligible to have up to 100 percent of their loans cancelled (in other words, they won't have to repay their loan debt). To qualify for these provisions, you must serve full time in a public or non-profit elementary or secondary school system as a:
- Teacher in a school serving students from low-income families;
- Special education teacher, including teachers of infants, toddlers, children, or youth with disabilities; or
- Teacher in the fields of mathematics, science, foreign languages, or bilingual education or in any other field of expertise that is determined by a state education agency to have a shortage of qualified teachers in that state.
Who to Contact About Loan Forgiveness Programs:
To apply for teacher loan forgiveness or for more information about the program related to the Federal Family Education Loan Program or Federal Direct Loan Program, contact your loan holder. Contact the school you attended to inquire about teacher loan forgiveness in the Federal Perkins Loan Program.
Loan Calculator:
Use this site to estimate your monthly payments for your student loan.
http://www.mapping-your-future.org/features/loancalc.htm
