As the alternative to your refinancing student loan with the help of private lenders, you can consider government programs. There are four main programs for loan forgiveness for teachers.
Public Service Loan Forgiveness (PSLF) Program
This program is available for teachers, who have already made 120 payments (have been paying for 10 years). You also must have a Direct Loan to qualify. If you have Perkins or FFEL loans, you must first consolidate it and then apply.
There are no strict requirements for the employment. Most of the public and private elementary school teachers will qualify.
All your previous payments must be made not later than 15 days after the defined day and after October 2007.
Teacher Loan Forgiveness
Another loan forgiveness teachers program will forgive up to $17,500 of the FFEL subsidized or unsubsidized or Direct loans. You must work full-time at least 5 complete years at the school. The first academic year must be after 1998.
Unfortunately, only mathematics or science teachers can qualify for the entire sum ($17,500). Other teachers can expect the government to forgive up to $5,000.
Perkins Loan Cancellation for Teachers
This teachers loan forgiveness program will forgive up to 100% of the Federal Perkins Loan. For this program, you must work full-time at a low-income school or teach certain subjects in other types of schools.
The program forgives the portions of the loan including the interest:
- 15% of the loan is forgiven for the first two years of the full-time employment;
- 20% is forgiven for the next two years;
- 30% is forgiven for the fifth year of your work.
If you want to know whether your school qualifies for this federal loan forgiveness for teachers, you can check out it here. Even if you don’t work at a low-income school, you still can qualify if you teach science, mathematics, foreign languages, bilingual or special education or any other subjects that your state defined.
State-Sponsored Student Loan Forgiveness Programs
Each state developed its own loan forgiveness teachers program – you just should check out the options available for your state. Teachers that work in a high-need area have more options to qualify for forgiveness. At the end of this article, you can find available programs for more than 10 states.
Before choosing a program for loan forgiveness for teachers, you should consult with your federal loan servicers to apply for the reasonable forgiveness.