If you’re a teacher with federal student loans, navigating the various loan forgiveness programs can be overwhelming.
However, understanding the requirements and eligibility criteria can help you make informed decisions about which programs may be suitable for you.
Among the options available are Public Service Loan Forgiveness, Teacher Loan Forgiveness, Perkins Loan cancellation for teachers, and state-sponsored student loan forgiveness programs.
Under the Teacher Loan Forgiveness (TLF) Program, eligible teachers who have completed five full and consecutive academic years of teaching in a low-income school or educational service agency may qualify for loan forgiveness of up to $17,500 on certain federal loans.
This includes Direct Subsidized and Unsubsidized Loans as well as Subsidized and Unsubsidized Federal Stafford Loans.
To qualify for TLF, several criteria must be met.
Firstly, you must not have had an outstanding balance on Direct Loans or Federal Family Education Loan (FFEL) Program loans as of October 1, 1998, or the date you obtained a Direct Loan or FFEL Program loan thereafter.
Additionally, you must have been employed as a full-time, highly qualified teacher for five complete and consecutive academic years, with at least one of those years occurring after the 1997-98 academic year.
Moreover, your teaching service must have been conducted at an elementary school, secondary school, or educational service agency serving low-income students.
In instances where a teacher was unable to complete a full academic year of teaching due to certain reasons, such as illness or military service, that year may still count towards the required five years if specific conditions are met, including completion of at least half the academic year and meeting the employer’s contract requirements.
It’s essential to verify that the school or educational service agency where you taught is classified as low-income.
This can be confirmed by referencing the Teacher Cancellation Low Income (TCLI) Directory published by the U.S. Department of Education annually.
Furthermore, the maximum forgiveness amount varies based on the subject area taught.
Highly qualified mathematics or science teachers at the secondary school level or highly qualified special education teachers may be eligible for up to $17,500 in loan forgiveness, while other qualified elementary or secondary education teachers may receive up to $5,000 in forgiveness.
Once you’ve completed the required five years of qualifying teaching, you can apply for TLF by submitting a Teacher Loan Forgiveness Application to your loan servicer.
It’s crucial to ensure that the certification section of the application is completed by the chief administrative officer of the school or educational service agency where you provided your qualifying teaching service.
