Student Loan Forgiveness for Teachers

For teachers, there are two types of student loan forgiveness. There’s Teacher Student Loan Forgiveness for the following:

1. Direct Subsidized Loans
2. Direct Unsubsidized Loans
3. Subsidized Federal Stafford Loans
4. Unsubsidized Federal Stafford Loans
5. Direct Loans and Federal Stafford Loans can be forgiven

Then there can be Teacher Cancellation for Federal Perkins Loans

Why are Teacher Loans Forgiven?

The forgiveness of Teacher Loans is given to act as an incentive to encourage individuals to enter the teaching profession and to continue or remain as teachers.

Essentially, you must teach full-time for five complete and consecutive years in an elementary or secondary school or educational service agency that services low-income families, and meet other qualifications, you should be eligible for forgiveness up to a combined total of $17,500 on Direct Subsidized and Unsubsidized Loans and the same with Federal Stafford Loans, Subsidized or Unsubsized.

However, PLUS loans, these are not eligible for forgiveness.

There are considerable requirements for this loan forgiveness and here’s an outline of the requirements:

1. On Direct Loans or (FFEL Loans) Federal Family Education Loans, you have an outstanding balance as of Oct 1, 1998 or you obtained a FFEL or Direct Loan after Oct 1, 1998. You can’t be eligible forgiveness on a loan if you are in default on a subsidized or unsubsidized loan unless you have a repayment plan or arrangement with the holder of the defaulted loan.
2. The loan or loans which can be forgiven must have been made before the end of your five academic years of teaching service.
3. Any time spent teaching through AmeriCorp will not be counted for the 5 year requirement of teaching.
4. At least one year of teaching must have been after 1997-1998 academic year when you were employed as a teacher for five complete and consecutive academic years.
5. You must have been employed in either an elementary or secondary school that:
6. Qualifies for funds under Title I of the Elementary and Secondary Education Act of 1965, as amended;
7. The US Department of Education must have determined that more than 30% of the school’s total enrollment is made up of children who qualify for services provided under Title I; and
8. The school is listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. If the directory is not ready by May 1, then you can use the previous year’s directory.

SPECIAL NOTE: All elementary and secondary schools operated by the Bureau of Indian Education (BIE), qualify as schools serving low-income students even if they are not listed in the Annual Directory of Low-Income Schools for Teacher Cancellation Benefits.

Still have questions?

If you live in New London County and want help with your student loan debt, call our office now at 860-449-1510 – we’d love to help you!