Who is eligible?

• The teacher must have been a new borrower as of Oct. 1, 1998, who had no outstanding loan balance on a Federal Family Education Loan Program (FEELP) or William D. Ford Federal Direct Loan Program loan as of that date or the date the borrower obtained a loan after Oct. 1, 1998.
• The teacher must have been employed full time for five consecutive complete years in an elementary or secondary school serving a low-income community. At least one of the five years of qualified teaching service must have been after the 1997-1998 academic year.
• The loan for which forgiveness is sought must have been made before the end of the fifth academic year of qualified teaching employment.
• If employed as an elementary-school teacher, the borrower must have demonstrated knowledge and teaching skills in reading, writing, mathematics and other areas of the school's curriculum.
• If employed as a secondary-school teacher, the borrower must be teaching a subject that is relevant to the borrower's academic major.
• Teachers who are in default on the loans for which they seek loan forgiveness must have made satisfactory repayment arrangements with their loan holder.
• Teachers may not seek loan forgiveness based on teaching service for which they already have received a benefit through the AmeriCorps program.

How much of the outstanding loan amount can be forgiven?

• Up to $5,000 of the outstanding balance of a qualified Stafford loan, or the outstanding portion of a Consolidation loan used to repay qualified Stafford loans, may be forgiven.
• The program forgives only the eligible outstanding balances of qualified federal education loans. Amounts previously paid by the borrower will not be refunded.
• Borrowers who are engaged in qualified teaching service may apply to their lender or loan servicer for forbearance to suspend payments on qualified loans for up to one year at a time.

How does a teacher apply for loan forgiveness?

• Borrowers must complete a Teacher Loan Forgiveness Application and submit the application to their loan holder or loan servicer.