There is some relief for beginning teachers.  Be sure to print this information off or mark your calendar 5 years from now, so you can remember to take advantage of this loan forgiveness program.

Current Program
The current Teacher Loan Forgiveness Program is designed to forgive up to $5,000 of the outstanding principal and interest on eligible Stafford loans for eligible teachers.

A qualified teacher was a new borrower on or after October 1, 1998 who:

  • Has been employed as a full-time teacher (with at least one year of teaching after the 1997/1998 school year) at a school that qualifies for Perkins loan cancellation
  • If an elementary teacher, has demonstrated knowledge and skills in reading, writing, and mathematics
  • If a secondary teacher, is teaching a subject relevant to his or her academic major
  • Is not in default on a loan for which he or she is seeking forgiveness

Enhancements
The changes put into effect by the Taxpayer-Teacher Protection Act include:

  • Borrowers must be highly qualified, as defined by the No Child Left Behind Act.
  • The loan forgiveness benefit is increased from up to $5,000 to as much as $17,500 for borrowers who were new on or after October 1, 1998 and before October 1, 2005 and have taught full time for five consecutive years in a Title I school and are teaching:
    • High school math or science; or
    • Elementary or secondary special education to children with disabilities (as defined by the Individuals with Disabilities Act) whose disabilities correspond with the borrower’s area of training and the borrower has shown knowledge of the curriculum.
  • The U.S. Secretary of Education must notify local educational agencies that are eligible to participate in the Small Rural Achievement Program of the increased loan forgiveness benefits to encourage such agencies to notify teachers.

RESOURCE LINK

Road to Teaching: A Guide to Teacher Training, Student Teaching, and Finding a Job

Student Loan Forgiveness Website

Advertisements