Teachers rejoice! If you have been struggling with doing what you love and juggling the harsh loan repayments then we want to introduce you to some programs that will lift a significant anxiety from your shoulders.
In case you are a degreed professional and looking to switch a job because of the loans, then these programs could be your cue to unload those loans in exchange for teaching.
Federal Teacher Loan Forgiveness
This program demands that you become and remain a teacher throughout your career. Working as a teacher for full and consecutive years can help you get up to $18,000 of your student loans forgiven. The amount depends primarily on how “highly qualified” you are regarded. Teaching Math and Science at a secondary school and a special education teacher working at a special/disabled children school are highly recommended. This program is valid on all loans that were disbursed after October 1st 1998 and are not in default.
Eligible loans include:
1. Direct subsidized and unsubsidized student loans,
2. Stafford Loans — Subsidized and unsubsidized.
The eligibility requirements for this program are:
1. Your school must be:
a. In a Title I funding qualified district;
b. Qualified for Title I services. Hence it must have more than 30% of enrollment;
c. Listed in a directory of qualifying schools published by the government;
2. The above conditions may be considered valid even if your school had qualified even once in one of the five years;
If you have worked at an educational service agency that qualifies the Title I funding, you will still be considered eligible for the program.
Federal Public Service Loan Forgiveness (PSLF)
This program was designed to encourage working in full-time public service jobs of which teaching is an integral part. Eligible loans include Federal Student Loans such as:
1. William D. Ford Direct Loans — both direct subsidized and unsubsidized loans;
2. Direct PLUS loans; and
3. Direct consolidation loans;
The eligibility criteria for this program is strict and the reason why few loans have been forgiven so far through it.
1. You must make full monthly payments for 10 years. That’s about 120 on-time monthly payments on your direct loans;
2. Only payments made after October 1st 2007 qualify;
3. You must have remained a full-time worker at a qualifying public service when the payments were being made.
The only downside, and only in case you have switched from a different career, is the time-period for which you have to pay those full monthly payments.
Forgiveness Programs Sponsored by Your State and City
Honestly speaking, we are always shocked to know that teachers are unaware of these. There are various programs available and we feel it is right to claim that only the American Federation of Teachers (AFT) searchable database will let you know how many they have at the moment! The database includes a range of forgiveness programs, grants, awards and classroom donation programs.
You can easily search the forgiveness programs that match the grade level you are teaching, subject area, your state, etc.
We hope to have relieved a significant part of your anxiety related to repaying loans. The paperwork may turn out to be complex and overwhelming and we advise that you seek some professional advice to make the whole process work out like a breeze.
Sources:
http://www.tuition.io/blog/2013/01/4-student-loan-forgiveness-programs-for-teachers/
http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/teacher
http://www.tgslc.org/borrowers/teachers/eligible.cfm
