The purpose behind Loan Forgiveness Programs is to increase the work force in certain job areas like Public Service, and low-income schools. Below is a list of Loan Forgiveness Programs and information.
PUBLIC SERVICE LOAN FORGIVENESS:
*VALID ON DIRECT LOANS ONLY*
Who Qualifies: If you work FULL-TIME in a position of public service. To see more information about whether your job qualifies go HERE.
This program just began in 2007 so there is not an application available at this point, but it is recommended that you submit Employment Certification Forms each year which can be found by going HERE.
The program requires that you make 120 separate qualifying monthly payments on-time. These payments must be made under a repayment plan that qualifies for the forgiveness and you have to be working full-time for a public service organization that qualifies for the forgiveness when they’re made. Both the Income Based Repayment (IBR) and Income Contingent Repayment (ICR) Plans qualify. Once you have made your 120 qualifying payments the remainder of your loan will be forgiven as long as all of your paperwork is correct and approved.
TEACHER LOAN FORGIVENESS PROGRAM
Who Qualifies: Those who teach for 5 complete and consecutive years in an elementary school or secondary school that is designated as low income and listed on the Annual Director of Designated Low-Income Schools for Teacher Cancellation Benefits,qualifies for funding under Title I, the Department of Education has determined that over 30% of the children enrolled qualify for services that are provided under Title I. For more in depth information about this program go HERE.
Forgiveness amounts vary based on your position, subject area, and education:
If you work FULL TIME in an elementary or middle school as a highly qualified special education teacher for children with disabilities and the children’s disabilities correspond with your special training and you demonstrated your teaching skills and knowledge in content areas of the school curriculum you may qualify for loan forgiveness of UP TO $17,500
If you work FULL TIME in a secondary school as a highly qualified math teacher you may qualify for loan forgiveness UP TO $17,500
If you work FULL TIME in a secondary school as a highly qualified science teacher you may qualify for loan forgiveness UP TO $17,500.
If you work FULL TIME in a secondary school (a) as a highly qualified secondary school teacher or (b) in a subject area that is relevant to your major you may qualify for a loan forgiveness UP TO $5,000
If you work FULL TIME in an elementary school (a) as a highly qualified elementary school teacher or (b) where you demonstrate knowledge and teaching skills in mathematics, reading, writing, and other areas of the curriculum you may qualify for a loan forgiveness UP TO $5,000
You can find the application for Teacher Loan Forgiveness HERE.
We only have ONE installment left in this series and it will be on Consolidation. Once that post is published we will be doing a Question and Answer segment so keep an eye out for that!
Check out the other Student Loan articles in this series!
Repaying Student Loans: Intro (Where to Start)
Repaying Student Loans: Section 1 (When do I have to pay and how much?)
Repaying Student Loans: Section 2 (Your Repayment Options)
Repaying Student Loans: Section 3 (What if I can’t make my payment?)
Repaying Student Loans: Section 4 (What if I don’t qualify for deferment?)
Repaying Student Loans: Section 5 (Can my loan be discharged?)
Repaying Student Loans: Section 6 (Loan Forgiveness Programs)
Repaying Student Loans: Section 7 (Loan Consolidations)
Repaying Student Loans: Section 8 (Questions and Answers)
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