Teacher Student Loan Forgiveness Scheme: What Type Of Schools Provide This Benefit

The Teacher Student Loan Forgiveness Scheme allows teachers to have debt remaining on Stafford Loans they took out to help them through college canceled. It is designed as an incentive to encourage people into the teaching profession, and particularly into the schools and areas that need the most help from professional educators.

The dollar amount you can have canceled under the Teacher Student Loan Forgiveness Scheme varies depending on what you teach and the level to which you are qualified. Highly qualified teachers in math and science fields in elementary or secondary schools that qualify for the program, and teachers that work with children with disabilities or other special needs can get the highest value loan forgiveness, at up to $17,500. Teachers of other subjects in eligible schools can get up to $5000 off of their student loans.

To get your request for the Teacher Student Loan Forgiveness approved you have to have worked as a full time teacher for five consecutive school years, in one of the schools that qualify for the scheme. You don't have to serve these full five years at the same elementary or secondary school, however all schools you work at during this period do have to be on the list that are approved as eligible for the loan forgiveness program.

Schools that are accepted onto the scheme are those that qualify for Title 1 funding because they are in deprived areas, schools that have over 30% enrolled children who are entitled to Title 1 funding and services, and any schools under the Bureau of Indian Education (BIE) or those under contract with the BIE that are run on Indian reservations by tribal groups.

The list of schools is called the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. This list is maintained on a yearly basis, therefore new schools can be added and schools can drop off the list too. If the school you are working at comes off the list after a year or more of your continued service there, any years you work there that follow may still count towards the five consecutive years you need to be able to get your loan cancellation.

Once you have completed five consecutive qualifying years, you can apply for your loan forgiveness benefit. This will apply to the aggregate amount that you have left outstanding on your Stafford Loans, which is made up of the original amount you borrowed plus any interest you have accrued over time. You can apply for 60 days forbearance while you complete and file your request and a decision is made on your application. The scheme only applies to outstanding debt after your five years of full time teaching. You cannot receive any rebates on repayments you have already made.

If teaching is a career you are interested in, then considering starting your career in a school in a low income area could not only give you valuable experience that will make you a better educator, but can also help you get out of your student debt early.