Student Loan Forgiveness Programs and Teacher Loan Forgiveness Program

1. Student Loan Forgiveness Programsand Teacher Loan Forgiveness Program Presented by James Copeland, Jr., Ed. D. March 24, 2016

2. Purpose of PSLF The PSLF Program was established to encourage individuals to work in public service by forgiving the remaining balance of their Direct Loans after they have made 120 qualifying payments while employed by a qualifying employer

3. PSLF Basics 120 Qualifying Payments …When Applying For & Receiving PSLF In Qualifying Repayment Plans Per IRS, forgiven amount is not taxable income On Direct Loans While Working For A Qualifying Employer… 3

4. PSLF Eligible Loans Parent PLUS Loans - NO Federal Direct Student Loan Perkins Loans - NO FFELP Loans - NO Direct Consolidation Loan - YES PSLF is only for Direct Loans, but all Direct Loans qualify

5. PSLF Qualifying Employment It matters where you work, not what you do… Other not-for-profit organizations providing specific qualifying services 501(c)(3) not-for-profit organization Any government organization 5

6. PSLF Full-Time Employment • Full-time is the greater of: • Employer’s definition of full-time • 30 hours per week • May work multiple qualifying part-time jobs that equal full-time • For borrowers at a non-profit organization, hours spent in religious instruction, worship services, or proselytizing do not count

7. PSLF Qualifying Repayment Plans • 10-Year Standard • IBR • ICR • Pay As You Earn • REPAYE • Others ≥ 10 Year Standard • Income-driven plans are most likely to yield a balance for forgiveness

8. PSLF Qualifying Payments 120 separate monthly payments* Do not need to be consecutive Must be made within 15 days of due date After October 1, 2007 Must be for full amount due under plan *Exception for AmeriCorps, Peace Corp, and DOD

9. PSLF Payment Amount • Multiple partial payments • Count as one payment • All must be received within 15 days of due date • Payments made when not required • Do not qualify • Lump sum payments • Count as one payment • Exceptions for AmeriCorps, Peace Corp, and Department of Defense borrowers

10. PSLF Employment Certification FedLoan Servicing determines borrower has direct loans All federally-held loans transfer to FedLoan Servicing Loan s were made during employed period

11. PSLF Employment Certification Form

12. PSLF ECF

13. PSLF ECF

14. PSLF ECF

15. PSLF ECF

16. Common ECF Issues • Inaccurate or Missing End Date on ECF Form • Blank end date when the borrower is still employed vs. checking “still employed” • Check Box 15 to certify accuracy • Missing required fields (such as EIN number) • Payment Tracking • Must submit an ECF for an updated qualifying payment count • Payments made to other servicers (not just FedLoan) can be counted toward PSLF

17. Common Program Misconceptions Eligible Loan Types All Federal loans can be eligible through Direct Loan Consolidation. Employer Eligibility Qualifying employment for the PSLF Program is not about the specific job a borrower does, but rather, who the employer is. Qualifying Payment Plans Qualifying repayment plans include all income-driven repayment plans and the 10-year Standard Repayment Plan. Consolidation and PSLF Consolidating Direct Loans will erase any qualifying payments made. Appropriate Time to Begin Tracking for PSLF Borrowers shouldn’t wait to submit an ECF until after they have made 10 years of qualifying payments. 17

18. PSLF Qualifying Employment 18

19. PSLF Processed ECF’s 392,571 (70%) Approved 564,325 Processed 171,754 (30%) Denied Source: FedLoan Servicing

20. PSLF Processed ECF’s

21. PSLF Qualifying Payments

22. PSLF Qualifying Repayment Plans

23. QUESTIONS? Visit StudentAid.gov/publicservice for more information about PSLF.

24. Teacher Loan Forgiveness Program

25. Purpose of TLFP The Teacher Loan Forgiveness Program is intended to encourage individuals to enter and continue in the teaching profession. Under this program, if you teach full-time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families, and meet other qualifications, you may be eligible for forgiveness of up to $17,500.00

26. Eligibility Requirements • No outstanding balance on Direct Loans or Federal Family Education Loan (FFEL) Program loans as of Oct. 1, 1998, or on the date that you obtained a Direct Loan or FFEL Program loan after Oct. 1, 1998. • Subsidized or unsubsidized loan, must not be in default therefore are not eligible for forgiveness unless you have made satisfactory repayment arrangements with the holder of the defaulted loan. • The loan(s) for which you are seeking forgiveness must have been made before the end of your five academic years of qualifying teaching service • You must have been employed as a full-time teacher for five complete and consecutive academic years, and at least one of those years must have been after the 1997–98 academic year.

27. Qualifying Loan Programs • Direct Subsidized • Direct Unsubsidized Loans • Subsidized and Unsubsidized Federal Stafford Loans

28. School Requirement(s) You must have been employed in an elementary or secondary school that: • Qualifies for funds under Title I of the Elementary and Secondary Education Act of 1965, as amended; • Has been selected by the U.S. Department of Education based on a determination that more than 30 percent of the school’s total enrollment is made up of children who qualify for services provided under Title I • Is listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. Note: If this directory is not available before May 1 of any year, the previous year’s directory may be used

29. School Requirements(s) Cont. IMPORTANT: Note: All elementary and secondary schools operated by the Bureau of Indian Education (BIE)—or operated on Indian reservations by Indian tribal groups under contract with BIE—qualify as schools serving low-income students. These schools are qualifying schools for purposes of this loan forgiveness program, even if they are not listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.

30. Teaching Requirements You must teach full-time for five complete and consecutive academic years. Service Beginning on or After Oct. 30, 2004 • If your five complete and consecutive years of qualifying teaching service began before Oct. 30, 2004, please note the following: • You may receive up to $5,000 in loan forgiveness if, as certified by the chief administrative officer of the school where you were employed, you were • full-time elementary school teacher teaching skills in reading, writing, mathematics, and other areas of the elementary school curriculum; or • full-time secondary school teacher who taught in a subject area that was relevant to your academic major. • You may receive up to $17,500 in loan forgiveness if, as certified by the chief administrative officer of the school where you were employed, if you were • full-time mathematics or science teacher in an eligible secondary school; or • special education teacher whose primary responsibility was to provide special education to children with disabilities, and you taught children with disabilities that corresponded to your area of special education training and have demonstrated knowledge and teaching skills in the content areas of the curriculum that you taught.

31. Perkins Teacher Cancellation

32. Perkins Teacher Cancellation Applicant qualifies for cancellation (discharge) of up to 100 percent of a Federal Perkins Loan if they have served full-time in a public or nonprofit elementary or secondary school system as a • teacher in a school serving students from low-income families; or • special education teacher, including teachers of infants, toddlers, children, or youth with disabilities; or • teacher in the fields of mathematics, science, foreign languages, or bilingual education, or in any other field of expertise determined by a state education agency to have a shortage of qualified teachers in that state. • Eligibility for teacher cancellation is based on the duties presented in an official position description, not on the position title. To receive a cancellation, you must be directly employed by the school system. There is no provision for canceling Federal Perkins Loans for teaching in postsecondary schools. • Note: Applicant also qualifies for deferment while performing teaching service that qualifies for cancellation. Contact the school that holds your loan for information on applying for deferment.

33. Purpose of Teacher Cancellation If you have a loan from the Federal Perkins Loan Program you might be eligible for loan cancellation for full-time teaching at a low-income school, or for teaching in certain subject areas. You can also qualify for deferment for these qualifying teaching services. Check with the school that made your Federal Perkins Loan for more information.

34. Additional Teaching Considerations for Perkins Cancellation • Teaching Part-time at Multiple Schools • Teaching at a Private School • Teaching at a Preschool or Prekindergarten Program • Teaching at Low-income Schools • Teaching at an Educational Service Agency • Teaching Special Education • Teaching in a Designated Subject Shortage Area Teacher Cancellation Low income Directory https://www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubSchoolSearch.jsp

35. Useful Links for State Contacts, Teacher Shortage listing and Repayment Info State Contact Information Directory https://www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubStateInfo.jsp Teacher Shortage Area Nationwide Listing http://www2.ed.gov/about/offices/list/ope/pol/tsa.pdf Repayment of Loan, Getting out of Default https://studentaid.ed.gov/sa/repay-loans/default/get-out

36. Questions Visit https://search.usa.gov/search?query=Teacher+loan+Forgiveness&op=Search&affiliate=federalstudentaid for more information about TLFP