Childcare Provider Loan Forgiveness Program

A new program may allow a lender to forgive a portion of your undergraduate Stafford Loan if you are a child care provider working in a child care facility that serves a low-income community. This demonstration program is intended to bring more highly trained individuals into the early child care profession and to retain those providers for longer periods of time. Requirements for this loan forgiveness program are as follows:

• Be a new borrower (one who has no outstanding loan balance under the FFEL and Direct Loan programs) as of October 7, 1998.
• Have received an associate or bachelor's degree in early childhood education.
• Have worked full-time for two consecutive years as a provider in an eligible child care facility that serves a low-income community. A low income community is one in which at least 70 percent of the children receiving child care at the facility are from families that do not earn more then 85 percent of the State median household income.
• The loan must have been made after October 7, 1998 to a new borrower under the subsidized and unsubsidized Federal Stafford Loan, Direct Subsidized Loan, and Direct Unsubsidized Loan programs (does not include PLUS, Consolidation, Perkins, and graduate loans); and it must be a loan that a borrower received before beginning qualifying service and for the purpose of completing the borrower's associate or bachelor's degree in early childhood education or child care.

• Child Care Provider Loan Forgiveness Application [Acrobat PDF Format].