Student Loan Forgiveness Guide

1. Student Loan Forgiveness Guide There are various student loan forgiveness programs ranging from Public Service Loan Forgiveness to Teacher Loan Forgiveness.

2. Teacher Student Loan Forgiveness Teachers are public servants who are often underpaid, but who create significant positive impact in our communities. To give back to teaches for their selfless service to others, the federal government created a teacher student loan forgiveness program. The goal of the Teacher Student Loan Forgiveness Program to encourage promising individuals to enter into the teaching profession and to give back to their communities in low income schools. What are eligibility requirements for Teacher Student Loan Forgiveness? You must be a full-time teacher for five consecutive years in a designated elementary or secondary school or educational service agency that serves students from low income families. Also, your loans must have originated after October 1, 1998. Which loans are eligible for Teacher Loan Forgiveness? Federal direct loans and Stafford Loans are eligible for teacher loan forgiveness, whereas Parent PLUS loans are not eligible.

3. “Public Service Loan Forgiveness” What Is Public Service Loan Forgiveness? Public Service Loan Forgiveness forgives federal student loans for borrowers who are employed full-time in an eligible state, local or federal public service job or 501(c)(3) non-profit job who make 120 eligible on-time payments after October 1, 2007. This equates to 10 years of student loan payments. The 10 years of student loan payments can be made under several qualifying plans: •Standard Repayment •Income-Based Repayment •Pay As You Earn Repayment •Revised Pay As You Earn •Income-Contingent Most borrowers prefer an income-based repayment plan because they can lower their monthly student loan repayment, thereby taking full advantage of the Public Service Loan Forgiveness by having a larger amount of their student loan forgiven.

4. What are eligibility requirements for Public Loan Forgiveness? To be eligible, a borrower must either have a direct loan or a consolidated student loan, including loans under Family Federal Education Loans (FFEL), which existed before direct loans were introduced. To remain eligible for Public Service Loan Forgiveness, FFEL (as well as Perkins Loans) must be consolidated under direct loans. You do not have to be employed at the same employer continuously for 10 years. Which types of student loans are eligible for the Public Service Loan Forgiveness Program? Direct loans or a consolidated student loan are eligible. This includes: •Federal Direct Subsidized Stafford/Direct Loans •Federal Direct Unsubsidized Stafford/Direct Loans •Federal Direct Consolidations Loans •Federal Direct PLUS Loans (for parents and graduate and professional students)

5. Federal Perkins Student Loan Cancellation For Teachers Who is eligible for a Federal Perkins Student Loan Cancellation Program? How much of your student loan can be forgiven? Federal Perkins student loans can be forgiven up to 100% for teachers who work full-time at a qualifying low income public or non-profit elementary or secondary school in subject areas such as math, science and special education for a period of five years. How is the student loan cancellation applied over the five years? •Year 1: 15% of your student loan •Year 2: 15% of your student loan •Year 3: 20% of your student loan •Year 4: 20% of your student loan •Year 5: 30% of your student loan