Student loan debt can be debilitating to a college graduate’s finances – especially when the borrower has chosen a career with limited income opportunities. Our nation’s educators are a perfect example. Unlike graduates who study to prepare for a career offering the ability to achieve high income levels, school teachers for the most part will always be limited.
Most students who choose to work in the field of education do so because they enjoy teaching and/or helping others. Our world is extremely fortunate to have such a selfless group among us. If everyone entered college with a goal of selecting a profession merely based on the income potential our world would be in serious trouble.
Consider the limited earning potential for those professionals who take on a more community service role, such as policemen, paramedics, nurses, pro-bono lawyers, etc. Obviously, our Nation’s government has implemented ways to reduce student loan debt for these men and women who aid our communities with their service.
Teacher Loan Forgiveness Program – Who is Eligible?
Student loan forgiveness for teachers is available for those who qualify. A teacher who works full-time for five (5) consecutive years in a qualified elementary, high school or an agency servicing a low-income area may be eligible for loan forgiveness on a federal loan (subsidized or unsubsidized).
Below are just some of the initial requirements for loan forgiveness eligibility:
- Borrower must have obtained and maintained a full state teaching certification and/or license and must be currently active
- The borrower must be current on all federal loan payments as of October 1, 1998
- The student loan must have originated prior to five (5) years of the borrower’s initial teaching certification
- Borrower must have been employed full-time for five (5) consecutive years with at least one year of employment as an elementary or secondary teacher following the 1997-98 school year within a school district approved for funding under Title I of the Elementary and Secondary Education Act of 1965 (with up-to-date amendments). Some exceptions may apply regarding the five year teaching requirement.
Teacher Loan Cancellation
Student loans for teachers granted through the Perkins Loan program are often eligible for loan cancellation up to 100% by teaching full-time at a qualified low-income school or for teaching a specific subject (i.e. math, science, English, etc.). If the teacher is not eligible for a loan cancellation, a deferment may be possible.
To find out if your school is classified as a low-income elementary or secondary school, visit the official online database.
There are countless loan forgiveness programs and the requirements, guidelines and overall loan restructuring process can be overwhelming for many borrowers. Canty & Associates will make the entire procedure simple for our clients. We typically complete all student loan refinance programs within 4 to six weeks. Forgiveness programs take approximately three to five months. All programs require very little effort on behalf of our clients. Contact us via our online submission form and find out if you are eligible for teacher loan forgiveness.