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The basis for the Teacher Loan Forgiveness Program (TLFP) is to encourage individuals to enter the teaching profession and teach at schools that serve low-income families. If you’re willing to dedicate five years at a qualified school, this program may be what you’re looking for.
Qualified teachers may be able to cancel all or a portion of their FFEL and Direct Loan loans. The Stafford Loan Forgiveness Program for Teachers allows teachers to reduce their loans when they teach at qualified low-income elementary and secondary school systems.
According to the website, Student Aid on the Web, “Under this program, individuals who teach full time for five consecutive, complete academic years in certain elementary and secondary schools that serve low-income families and meet other qualifications may be eligible for forgiveness of up to a combined total of $17,500 (for certain specialty disciplines) in principal and interest on their FFEL and/or Direct Loan program loans.” For teachers in other areas, it offers up to $5,000 loan forgiveness.
Eligibility Requirements
Here are just a few of the eligibility requirements for teachers:
• As of October 1, 1998, you cannot have an outstanding loan balance on a Federal Education Loan Program or Federal Direct Loan Program.
• To qualify, you must be employed at a qualified school for five complete and consecutive academic years at an eligible (low-income) school.
• For loan forgiveness on a defaulted loan, you must make payment arrangements.
• You cannot receive benefits from the AmeriCorps Program under Subtitle D of Title I of the National and Community Service Act of 1990 for the same teaching service.
• The loans were made before the end of your five-year teaching service.
This list, however, is abbreviated. For a complete list of eligibility requirements, go to the website.
How to Apply for the Stafford Loan Forgiveness Program for Teachers
Before you apply for loan forgiveness, review all the requirements. Also, before you make a decision about getting a student loan in hopes that all will be forgiven, you need to know that there are no guarantees that you will be accepted into the program, even if you qualify.
The economy has had a negative impact on many loan forgiveness programs. In The New York Times article “Recession Imperils Loan Forgiveness Programs” published May 28, 2009, author Jonathan D. Glater writes, “From Kentucky to Iowa to California, loan forgiveness are on the chopping block.” Although this is not good news to prospective candidates for the program, don’t let the economy dissuade you from applying to the program, but don’t rely on automatic acceptance, either.
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