Loan Forgiveness

BACKGROUND

The U.S. Department of Education Teacher Loan Forgiveness Programs are intended to encourage individuals to enter into and continue in the teaching profession. They are designed specifically for educators that teach in schools designated as low-income, and / or teach in subject matter or teacher shortage areas, or that are deemed highly qualified.

Teachers/educators who are borrowers of certain loans may qualify for deferment, forbearance, or cancellation of all or part of their loans, depending on the type of loans and when the loans were made.

  • Deferment is a temporary postponement of loan payments; principal, and in some cases interest

  • Forbearance is a temporary postponement or reduction of the loan

  • Cancellation means that the borrower will no longer be responsible for repaying all or a portion of the loan, including interest, once he or she has performed qualifying teaching service

LOAN FORGIVENESS PROGRAMS

  1. Two (2) types:

Designated as low income school: must have one or more of the following to be eligible:

  • Title 1

  • Title 1 and highly qualified

  • Title 1 and in a shortage area

Teacher Shortage Area: must have the following to be eligible:

  • Full-time teacher of mathematics, science, foreign languages, bilingual education, or any other field of expertise where the State Educational Agency has determined there is a shortage of qualified teachers.

  • Perkins Loan borrower