What Is Teacher Loan Forgiveness
The teacher loan forgiveness program is a federal program that enables teachers at approved schools to receive forgiveness for up to $17,500 of their student loan debt.
Teacher loan forgiveness provides an excellent benefit for teachers who qualify. But there are hurdles to clear before you can participate, and certain teachers don’t qualify for the full benefit. If you’re a teacher, here’s what you need to know to take advantage of this program.
Common Questions About Tlf
Who do I contact if I have questions?
If you have any questions about the Teacher Loan Forgiveness Program, contact Jaime Shelton at 405.234.4281 or by email at .
What loans are eligible for forgiveness?
Subsidized and unsubsidized Stafford loans from the FFELP and/or the William D. Ford Federal Direct Loan Program are eligible. The portion of a consolidation loan that paid off an eligible Stafford loan may also be eligible for forgiveness.
Is my Federal Perkins loan eligible for forgiveness?
Federal Perkins loans may be eligible for complete loan cancellation after teaching for five years in a designated low-income school or in a subject-matter shortage area. Please note that cancellation benefits will be lost if you consolidate your Perkins loan. Contact your school or visit the Federal Perkins Loan Teacher Cancellation page for more information.
Is my consolidation loan eligible for forgiveness?
It depends. To be eligible for forgiveness, you must be considered a new borrower. Consolidation loans aren’t considered new loans and don’t qualify you as a new borrower. You’re considered a new borrower if you got your loan after Oct. 1, 1998, and didn’t have an outstanding balance on a Stafford or Direct loan when you got your loan. Only the portion of your consolidation loan that paid off an eligible Stafford loan may be eligible for forgiveness.
What if I got my loans before Oct. 1, 1998?
Teacher Loan Forgiveness Student Loan Options For Educators
Far too many educators start out with heavy student loan debt. Unlike some other professions, our income usually doesnt justify borrowing for college costs. Six figures of debt is hard to swallow when youll be lucky to reach a six figure income even if you work hard to grow your income. Fortunately, one real advantage for educators is the number of teacher loan forgiveness options out there.
In this post, well review four options to deal with student loans. The good news is that virtually all public educators will qualify for at least one of these options. The even better news is some educators are likely to have 100% of their loans forgiven!
Any forgiveness is essentially bonus money on top of your income. Dont let thousands of dollars get away.
Thats worth a quick read, right?
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How To Decide Which Forgiveness Program Is The Best Option
If you are having problems deciding on which student loan forgiveness program is the right option, know that you can get some loan forgiveness through all the programs. As emphasized earlier, you can qualify for two or more programs, but not at the same time. That means you start with one, and begin the next one later.
Otherwise, you will have to determine how much you will pay in ten years on an IDR plan, assuming it is PSLF. Then find out how much will be forgiven on your outstanding loan balance. You can then compare the amount you will be forgiven on Teacher Loan Forgiveness, for example.
Aside from that, you have to ensure that you stay working at the specified job until you complete your term. It all comes down to the amount you owe and what each of the forgiveness programs can do. It is advisable to get professional assistance to help you make an informed decision.
Pros Of Idr Forgiveness
- Any periods in deferment or periods of repayment in other plans will count toward your repayment term time.
- You dont have to apply for IDR forgiveness. Your servicer should let you know as you get close to the point of forgiveness.
- If you have a particularly large student loan debt balance, you could have a good chunk of it forgiven with IDR after the repayment term.
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Perkins Loan Teacher Cancellation
Through 2017, Perkins Loans were available to certain undergraduate and graduate students with a financial need. You can no longer receive these student loans, but if youre a teacher with existing Perkins Loans, they might be eligible for up to 100 percent cancellation over a five-year period.
- Requirements: You must have a Perkins Loan and be a full-time teacher at a qualifying low-income school. Alternatively, you may still be eligible for the cancellation if you teach science, mathematics, a foreign language, bilingual education or special education. In certain states with teacher shortages, you may qualify if you teach a different subject as well.
- Perks: Teachers at nonprofit private schools may qualify for forgiveness, depending on whether the school provides a qualifying education as defined by state law.
- What to watch out for: If youre eligible, your loans wont be canceled all at once. Instead, 15 percent of your student loan balances will be canceled per year during the first and second years you hold an eligible teaching position. Another 20 percent of your balances will be canceled per year during years three and four. Finally, 30 percent will be canceled after your fifth year of eligible employment.
Which Option Should I Choose
Unfortunately, this is not an easy question to answer because it will depend on your loan types, amounts, position, and career plans. I can provide some quick thoughts and then will leave you with links to a comprehensive resource.
- If all of your debt is in Perkins loans and you work at an eligible institution, that is almost certainly your best option.
- If you have less than the forgivable amount and work in a qualifying agency, then Teacher Loan Forgiveness is likely the best route.
- If you have a great deal of federal direct student debt, then PSLF is almost certainly the best choice.
- If you hate holding debt, plan to work in education less than 10 years, or only hold private loans, then PSLF is likely not a good option for you.
My wife and I disposed of our student loan debt years ago through a variety of forgiveness programs and paydown strategies. It was before PSLF, so I dont consider myself an expert on the subject. I needed to provide you with an overview, and want you to have access to resources for going deeper.
I find Student Loan Planner to be an incredible resource for educators with student loans. They have tons of free content if you want to do it yourself. If this seems overwhelming and youd appreciate guidance, they also offer a reasonably priced paid service.
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Other Reasons For Loan Forgiveness
You may also qualify to have your federal student loan forgiven by working for the government or a not-for-profit organization through the Public Service Loan Forgiveness Program, or for reasons other than years of employment or service.
For example, if you become totally and permanently disabled, you may be able to have your direct loans, Perkins loans and Federal Family Education Loans discharged.
Cons Of Idr Forgiveness
- To obtain forgiveness, youll need to stay on an IDR for the repayment term. This means filling out a recertification form every year to confirm that youre still eligible for your repayment plan. If you are no longer eligible, you could lose your chance at forgiveness.
- Again, this option isnt specifically a perk for teaching. Its available to all federal student loan borrowers.
- The repayment terms are much longer than those of other forgiveness options. You may not have a balance left to forgive at the end of your repayment term, especially if your income rises.
- The IRS will view any forgiven balance as canceled debt, which is taxable. So, expect a heftier tax bill for that tax year.
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How To Qualify For Pslf
In order to get approval for this forgiveness, youll have to jump through a few hoops.
First, youll need to meet the following requirements:
- Make 120 qualifying payments on an income-driven repayment plan.
- Work full-time for a certain type of nonprofit or government agency for at least 10 years.
- Have federal Direct Loans.
What constitutes a qualifying payment? Thats a full payment made no more than 15 days late. You must have also made these payments after Oct. 1, 2007.
Youll need to submit the Employment Certification Form while making those 120 payments. You should submit this form annually and whenever you begin a job in public service or switch employers. Make sure the form is free of errors and that your employer signs the employment certification.
Once youve made those 120 qualifying payments, youll be able to complete your application for PSLF and submit it.
Need help figuring this PSLF thing out? The Department of Education has released a PSLF Help Tool. This tool can help you find out what you need to do to participate and fill out an Employment Certification Form partially to get you started.
Dont Qualify For Student Loan Forgiveness Alternatives For Conquering Your Debt
Not everyone qualifies for student loan forgiveness. If youre ineligible and struggling to pay your loans, consider other strategies for managing your debt.
One approach is accessing the income-driven repayment programs mentioned above, since you can reduce your monthly payments significantly. But if you dont have qualifying federal loans, or if you need a complete pause from making payments, consider putting your loans in deferment or forbearance.
You could qualify if you return to school, encounter financial hardship or have another eligible reason. Some private lenders will also put your loans into forbearance temporarily, so speak with your lender about your options.
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How Does Student Loan Forgiveness Work For Teachers
Teachers with student loans have four options for student loan forgiveness. These various programs may depend on where you work and the types of student loans that you have.
Generally, you may apply for student loan forgiveness if you work in approved educational institutions and have federal student loans. Here is a closer look into your forgiveness program options as a teacher with student loans.
Third Option For Teachers: Teach Grants
Teach Grant is not exactly a student loan forgiveness program. Though, students and teacher candidates can use this option as well. Students who are still studying to get a teachers degree can use this option. Teach Grant offers $4,000 every year. The requirement to be eligible for this program is that teachers should work at least four consecutive years in higher need schools that serve low-income students. Besides their study years, those students should work an additional four years after graduation in those schools to keep their Teach Grants. If you fail to meet these requirements, the Teach Grant loan becomes just like a conventional loan that you should pay for. It is essential to consider that before applying for this program.
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Request Forbearance Or Deferment
If you have a medical emergency or a financial hardship, such as an unexpected job loss or childcare issue, you can request a deferment or forbearance from your loan servicer. You can temporarily postpone your payments for several months, allowing you to skip payments without becoming delinquent. Contact your federal loan servicer for details.
Explore All Your Options For Paying Off Student Loans
Depending on where you live and work, you could qualify for partial or total forgiveness of your student loans. If you arent eligible, look into other options for dealing with your student loans, and check for any new developments or programs.
Even if you started out on a certain plan, you dont have to stick with it forever. Instead, feel free to adjust your plan as your circumstances and goals change over the years.
By exploring all your options, you can find the best student loan solution for you, and move towards a debt-free life.
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Student Loan Forgiveness For Non
March 6, 2018 by Emma Woods
Student loan forgiveness for non-profit employees is one of the many forms of student loan help available to borrowers. It is also one of the least complicated student loan forgiveness programs to qualify for. A career in a non-profit organization is not as popular as other options, but the benefits might change your mind. Student loan forgiveness is one, though a non-profit career in itself offers fulfilment in the form of altruistic work.
Option #: Public Service Loan Forgiveness
The Public Service Loan Forgiveness Program was established in 2007 and is designed to provide student loan forgiveness for people working in public service careers, including teachers. The minimum qualification requirements for this program include:
- Working full-time for a government agency or certain nonprofits
- Being enrolled in an income-driven repayment plan
- Making 120 qualifying payments
Sounds simple enough, but there are some caveats for teachers. For one thing, this loan forgiveness program doesnt extend to teachers working for private, for-profit schools. And for another, its notoriously difficult to qualify for loan forgiveness even if you are eligible.
The problem got so bad that, in 2018, Congress passed the Temporary Expanded Public Service Loan Forgiveness program to help some of the rejected borrowers, but few applications for that program have been approved, too. According to a report from the Government Accountability Office , 99% of borrowers who requested loan forgiveness between May 2018 and May 2019, the first year forgiveness eligibility began, were rejected. The reasons for rejection included not submitting a PSLF application, not making 120 qualifying payments under an eligible repayment plan, and owing loans that were ineligible for the program.
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Are You Eligible For The Teacher Loan Forgiveness Program
Here are the main requirements for Teacher Loan Forgiveness, according to Student Federal Aid, an Office of the U.S. Department of Education:
- You must have taught full time for five complete and consecutive years. One of those years must have been after the 1997-98 academic year.
- You must be a highly qualified teacher at a qualifying school. Use this Teacher Cancellation Low Income directory to search for your school or agency.
- Your loan must be from before the end of your five-year period of qualifying teaching service.
Who is considered a highly qualified teacher? A highly qualified teacher is one who:
- Has received a bachelors degree
- Maintains full state certification in the state where they teach
- Hasnt had any licensing or certification requirements waived for any reason
If you are a highly qualified special education teacher at the elementary or secondary education level or a secondary mathematics or science teacher, you may qualify for up to $17,500 in forgiveness.
Other teachers of any grade level can receive up to $5,000 in loan forgiveness.
Teachers can apply for loan forgiveness after completing the five-year period teaching requirement. Note that PLUS loans and Perkins loans are not eligible for the Teacher Loan Forgiveness program.
For more detailed information on this particular type of student loan forgiveness for public and private school teachers, visit the Federal Student Aid website.
Option : Perkins Loan Cancellation For Teachers
Perkins Loan Cancellation is a program that provides complete Teacher Loan Forgiveness for people who:
- Committed a service in a full-time educational role for a minimum of one year.
- Served one year at a school whose sole responsibility is to provide education for low-income families. The individual can also be a special education teacher or work in an area that lacks qualified teachers in specific areas such as science, math, etc.
The disadvantage to the Perkins Loan Cancellation is that it is accessible to only the teachers that have Perkins Loans. And compared to the teacher population in the United States, they are only a small group.
But if you are eligible for the program, you can acquire quite valuable benefits, especially if you are able to go through a school for five years or more of your qualifying service. Thats because your forgiven loan increases with time. For example:
- There is 15% forgiveness on your student loan after one or two years.
- You get a 20% loan forgiveness on your loan after three or four years.
- There is a 30% cancellation on your student loan after five years.
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Guide To Teacher Loan Forgiveness
Teacher-student loan forgiveness programs are designed to help teachers repay education debt easier. Several exclusive programs target teacher loan forgiveness. Educators can take advantage of these programs and shape a better future for themselves. The founder of the College Investor- Robert Farrington, opines, teachers have higher chances of getting a great student loan forgiveness opportunity rather than other occupations. He goes on to add that, Teacher loan forgiveness programs are easy to enroll in and can help teachers save hundreds of dollars. It would seem like ignoring this advice is essentially passing over free cash for teachers. Qualifying for teacher-student loan forgiveness programs is not an easy task. If you are a teacher, you will find what you need to know about the loan forgiveness process.
Teacher Loan Forgiveness Program : :
The Teacher Loan Forgiveness Program was created to encourage people to become educators within designated schools that serve low-income families. Teachers with Stafford loans may qualify for loan forgiveness if they meet the program’s specific eligibility requirements.
Use our Teacher Loan Forgiveness checklistPDF as a guide to help you determine your eligibility. If you can answer yes to all of the eligibility requirements listed, you may qualify for some level Stafford loan forgiveness. Download our Teacher Loan Forgiveness Program brochurePDF to find out more.
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