Student Loan Forgiveness Available To Some Teachers

There are times when student loans can be cancelled. The following information is found on the Federal Student Aid website,http://www.fsahelp.ed.gov/cancellation.html.

It gives specifics of how a student loan can be cancelled or, as it's more commonly referred to, "forgiven," if the college degree leads to or complements a job in the teaching profession. There are specific guidelines to be aware of...

"Teacher Loan Forgiveness/Teacher Loan Cancellation"

Federal Family Education Loan (FFEL)/Federal Direct Loan Teacher Loan Forgiveness
The Teacher Loan Forgiveness (TLF) Program is intended to encourage individuals to enter and continue in the teaching profession. Eligible applicants can receive loan forgiveness for up to a combined total of $5,000 of subsidized and unsubsidized Federal Family Education Loans (FFEL) or Federal Direct Loans.

The TLF Program is only available if you:

• did not have an outstanding balance on an FFEL or Direct Loan on October 1, 1998, or on the date you obtained an FFEL or Direct Loan after October 1, 1998;
  
• teach full-time at least five consecutive, complete school years as a full-time teacher in an elementary or secondary school designated as a low-income school;
  
• are not in default on the loan for which you are requesting forgiveness;
  have not received a benefit for the same teaching service through the AmeriCorps Program;
  
• completed one of your five years of qualifying teaching service after the 1997-1998 academic year; and
  
• took the loan for which you are requesting forgiveness before the end of your fifth year of qualifying teaching.
  

The best part if you have been in teaching for some time, is this: Highly qualified teachers, as defined by the "No Child Left Behind Act," can qualify for an increased level of $17,500 in TLF if they have been a full-time teacher for five years. This would allow teachers to pursue advanced teaching degrees.

For more detailed information about the eligibility requirements for teacher loan forgiveness, please visit the following website: http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelstaff.jsp?tab=repaying.

Click here for the Teacher Loan Forgiveness Application.

Federal Perkins Loan Teacher Loan Cancellation

In order to be eligible for Federal Perkins Loan teaching cancellation, you must be teaching full-time at a low-income school, as determined by your State's education agency. The low-income designation is based on statistics gathered about the population of each elementary and secondary school in your State.

The Armed Forces also offers loan forgiveness in some instances to people enlisting in the military. Do a Google search for more information about their current offers.