QUICK REFERENCE CHART OF TEACHER LOAN BENEFITS
To Help Teachers Determine if Their Student Loans Qualify for Forgiveness/Deferment/Cancellation Benefits. See 7-page Fact Sheet for Detailed Information.
* Important new note: see New State Loan Repayment Assistance Program under Notes from Texas on p.7 of Fact sheet
Type of Date of FIRST Benefit How is the Benefit When Is Benefit What Should Where Do You
Loan Loan Earned ? Received? You Do? Get the Forms
* see note Determines to Apply?
↨ Borrower Eligibility
Stafford ONLY on or after Forgiveness Teach for 5 consecutive At end of fifth • Make regular loan From loan holder or
Oct. 1, 1998. benefit of up to years in a low-income consecutive year of payments. Submit TEA website:
*Note: $5,000 (new school, & teach in an teaching in a designated forgive-forbearance http://www.tea.state.tx.
See new On the date of 1 benefit $17,500 for area relevant to his/her low-income school. form when balance
benefit loan, borrower second. math, sci. academic major (see due nears benefit
→ must have had no & second. & elem. fact sheet). If eligible (At least one year of amount of $5,000.**
outstanding spec. ed. teachers) for $17,500 (see left) or teaching service must be (No refunds possible.) forms to loan holder.
only for th
math, sci balance on per teacher on total teaching service began after the 1997-1998 • At end of 5 consec.
& spec. Stafford or Direct loan balances, incl. after 10-30-04, must school year.) year, submit applic.
ed. loans taken out consolidations in a meet definition of highly form to loan holder for
teachers prior to 10-01-98. Fed. Consol. Loan. qualified teacher below. up to $5,000** benefit.
Stafford Between July 1, NO forgiveness or
1993 & Sept. 30, deferment benefits
1998. No benefit available-Congress
for any -- even for did not legislate a
additional loans benefit during this
after 10-01-98. time period.
Stafford ONLY Between ONLY a Payment Must be teaching in a Whenever you apply. Use “Education From loan holder or
(old) July 1, 1987 & Deferment benefit designated subject- (Loan holder determines Related Deferment TEA website:
June 30, 1993. - up to 3 years – matter shortage area eligibility). Warning: This Request - EDU” form http://www.tea.state.tx.
Additional later No forgiveness! during the years you benefit is lost if/when to apply. us/eddev/loanforgive/
loans elig. too. apply. (See list below.) loans are consolidated. Send to loan holder.
Perkins On or After Cancellation After teaching five Partial Forgiveness at: • At beginning of each From the college or
July 23, 1992 benefit of up to years in a designated End of yr 1 & 2 = 15% ea school year, notify university where the
100% of the loan low-income school OR End of yr 3 & 4 = 20% ea college where loan Perkins loan was
in a designated subject- End of yr 5 = 30% was obtained; tell taken out.
matter shortage area. (Total of 100%) them where & what
Warning: Never you are teaching. (Send the
Prior to Same as above, but consolidate a Perkins • At end of each application to your
7-23-92 Cancellation subj. -matter shortage Loan into a Fed Consolid. school year, fill out college or
benefit of up to area service counted loan or cancellation the application to university.)
100% of the loan only after Oct. 7, 1998. benefits will be lost. apply for benefit.
Dates of Borrower Eligibility for Loan Benefits: were determined by date on which Congress passed the applicable legislation to establish the benefit.
Designated Low-Income Schools are: Schools with greater than 30% low-income student enrollment in a DISTRICT eligible for Title I funds.
Texas Subject-Matter Shortage Areas are: Special Ed, Math, Science, Foreign Language, Bilingual, ESL, and (computer) Technology Applications.
** $17,500 or less only for secondary math & science teachers and secondary and elementary special ed teachers whose 1 loan was obtained after 10-01-98.
For definition of highly qualified go to http://www.tea.state.tx.us/nclb/hottopics/hqdef.html
[Texas Education Agency Mar. 2006]