Teacher Loan Forgiveness

Recent federal legislation made significant changes in the terms of teacher loan forgiveness for Federal Stafford-loan borrowers. The eligibility requirements and maximum amounts of loan forgiveness now differ depending on when a borrower began teaching service that qualifies for loan forgiveness and the subject matter that the borrower is employed to teach.

Who is eligible?

  • You must have been a new borrower as of Oct. 1, 1998, who had no outstanding loan balance on a Federal Family Education Loan Program or William D. Ford Federal Direct Loan Program loan as of that date or the date you obtained a loan after Oct. 1, 1998.
  • You must have been employed as a full-time teacher for five consecutive, complete years in a qualified elementary or secondary school serving a low-income community or for an educational service agency. 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 you are in default on the loans for which you seek loan forgiveness, you must have made satisfactory repayment arrangements with your loan holder.
  • You may not seek loan forgiveness based on teaching service for which you already have received a benefit through the AmeriCorps program.

Additional eligibility requirements for teachers who began teaching service that qualifies for loan forgiveness prior to Oct. 30, 2004.

  • If you are employed as an elementary-school teacher, you must have demonstrated knowledge and teaching skills in reading, writing, mathematics and other areas of the school's curriculum.
  • If you are employed as a secondary-school teacher, you must be teaching a subject that is relevant to your academic major.
  • 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.

Additional eligibility requirements for teachers who began teaching service that qualifies for loan forgiveness on or after Oct. 30, 2004.

  • You must be a highly qualified teacher as defined in the Elementary and Secondary Act of 1965.
  • 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.

Additional eligibility requirements to qualify for a maximum $17,500 in loan forgiveness.

  • You must be a highly qualified teacher as defined in the Elementary and Secondary Act of 1965 and employed for the required period as a full-time secondary-school teacher of mathematics or science, or as an elementary- or secondary-school special-education teacher.

Definition of highly qualified teacher.

To be deemed highly qualified, teachers must have: 1) a bachelor’s degree, 2) full state certification or licensure, and 3) prove that they know each subject they teach.

Additional information

  • The program forgives only the outstanding principal and interest of qualified federal education loans. Amounts that you previously paid will not be refunded.
  • If you are engaged in qualified teaching service, you may apply to your lender or loan servicer for forbearance to suspend payments on qualified loans for up to one year at a time.
  • Teachers who are employed by private, nonprofit schools and who are exempt from state-certification requirements may qualify for loan forgiveness by taking competency tests in applicable grade levels and subject areas.
How does a teacher apply for loan forgiveness?