Loan Cancellation for Teachers

The Stafford Loan Forgiveness program allows eligible borrowers to receive forgiveness of up to $5,000 of their outstanding student loan balances. It also allows for forbearance of repayment during the 5-year teaching period leading up to forgiveness. To qualify for loan forgiveness the borrower must meet all of the following requirements.

1. You borrowed a Stafford Loan through the Federal Family Education Loan (FFEL) and/or the Federal Direct Loan Program.
2. You are a "new borrower" - either you had no outstanding FFEL or Direct Loan balance on October 1, 1998, or if you did have an outstanding balance you paid off that balance before getting the loan(s) for which you are requesting forgiveness.
3. You have been employed for at least 5 consecutive, complete school years as a fulltime teacher in a public, private, nonprofit elementary or secondary school designated as a low-income school. At least one of these years must occur after the 1997-98 academic year. To find out whether your school is considered low-income visit the Federal Student Aid (FSA) Web site. There are 3 exceptions to the "consecutive years" requirement.
   • You are called to active duty military status for more than 30 days.
   • You have a condition covered by the Family Medical Leave Act.
   • You returned to postsecondary education for a purpose related to performing the teaching service for which you are requesting forgiveness.

     For each of the exceptions to be allowable you must have
     
     (a) taught for at least one half of an academic term, and
     (b) your employer must consider you to have fulfilled your contract terms for purpose of salary increases, tenure and retirement.

4. You are not in default on the FFEL or Direct Loan for which you are requesting discharge, or you are in default but have established a satisfactory repayment arrangement with the holder of your loan.
5. You have not received a benefit for the same teaching services under the National Community Service Act of 1990 (Americorps).
6. You have borrowed the loan for which forgiveness is requested prior to the end of the fifth year of qualifying teaching.
7. Your meet the following certification requirements:
   • Elementary schools teachers: Your school's chief administrative officer must certify that you demonstrate knowledge and teaching skills in certain areas of the elementary school curriculum.
   • Secondary school teachers: Your school's chief administrative officer must certify that you teach in a subject area that is relevant to your academic major.

You should include the certification with your request for forgiveness. The holder(s) of your loan(s) can give you an application and other important information.

For additional information visit the Federal Student Aid (FAS) Web site or call the Federal Student Aid Information Center at (800) 433-3243 or TTY: (800) 730-8913.