Teacher Loan Forgiveness

					Teacher Loan Forgiveness
RMASFAA Conference October 21, 2008

Eligible Loans
• Subsidized Federal Stafford Loans • Unsubsidized Federal Stafford Loans • Federal Consolidation Loans that repaid eligible Stafford Loans

Amounts That May Be Forgiven
• Two different amounts of loan forgiveness
 $5000.00  $17,500.00

Up to $5,000 Loan Forgiveness
• Must be full-time elementary teacher with demonstrated knowledge and teaching skills in reading, writing, math and other areas of elementary school curriculum; or

Up to $5,000 Loan Forgiveness
• Must be full-time secondary school teacher in subject area relevant to academic major; • Must be highly qualified teacher as defined by the No Child Left Behind Act of 2001 if teaching service began on or after 10/30/04

Up to $17,500 Loan Forgiveness
• Must be full-time secondary school math or science teacher; or

Up to $17,500 Loan Forgiveness
• Must be full-time special education teacher whose primary responsibility is to teach children with disabilities; • Must be highly qualified as defined by the No Child Left Behind Act of 2001

Additional Requirements for Loan Forgiveness
• Must be new borrower on or after October 1, 1998 • Must have no outstanding balance on a FFELP or Federal Direct Loan received before 10/01/98

Additional Requirements for Loan Forgiveness
• Must have been employed full-time at least five complete consecutive years at an eligible school
 School must be listed in Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits; or  School must be operated by the Bureau of Indian Education (BIE) or operated on an Indian reservation by an Indian tribal group under contract with the BIE

Additional Requirements for Loan Forgiveness
• Must have received loan to be forgiven before completing final year of qualifying teaching service • Must not be in default on any loan
 Defaulted borrower must make satisfactory repayment arrangements with holder to be eligible for forgiveness

How to Apply
• Complete Teacher Loan Forgiveness Application
 Application may be obtained from holder of loan  School Chief Administrative Officer must certify eligibility

• Return application to holder of loan for processing

Teacher Loan Forgiveness Forbearance
• If anticipated forgiveness amount will repay total loan amount, borrower may be eligible for forbearance of payments while completing 5 consecutive years of teaching service
 Forbearance form may be obtained from holder of loan

Thank You


				
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