Government programs can forgive the student loans of eligible teachers
Teachers who work with the neediest populations generally don't receive high salaries, but must go through the expensive process of acquiring teacher certification. Recognizing this situation, the federal government has established loan-forgiveness programs to ease the burden. Some states, such as Iowa, will cancel federal loans for teachers who serve in high-need areas.
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Stafford Loan Forgiveness
The Stafford Loan Forgiveness Program will cancel as much as $17,500 in debts for teachers who meet certain requirements. To be eligible, a teacher must have received aid through Stafford's Federal Family Education Loan Program and/or the William D. Ford Federal Direct Loan Program Oct. 1, 1998. The teacher must also have worked five consecutive full school years at a low-income school. Highly qualified special education teachers, and those who are highly qualified to teach math and science, are eligible for the largest amount of loan forgiveness.
Perkins Loan Forgiveness
The Perkins Loan Forgiveness will cancel as much as 100 percent of a teacher's Federal Perkins Loan if the teacher meets the requirements. The program mandates that applicants teach in a school that serves low-income families, teach special education classes to infants, toddlers or disabled youth, or teach a subject where a state education agency has identified a shortage, including mathematics, science and foreign languages.
Public Service Loan Forgiveness
Under the College Cost Reduction Act of 2007, public school teachers and others who have worked full-time for 10 years in public service, are eligible for the Public Service Loan Forgiveness Program. However, applicants must have made at least 120 loan payments since Oct. 1, 2007. The program forgives the remaining principal and interest. It covers subsidized and unsubsidized Federal Direct Stafford Loans, Federal Direct Consolidation Loans and Federal Direct PLUS Loans.
