The Teacher Loan Forgiveness Program was instituted by the U.S. Department of Education to allow borrowers of Direct Loans or Federal Family Education Loan (FFEL) loans to have up to $17,500 discharged from their student loans. Direct Loan or Federal Family Education Loan (FFEL) borrowers who are teachers with new loans after October 1, 1998 and who are teaching in selected low-income schools for five consecutive complete academic years may be eligible for the Teacher Loan Forgiveness Discharge.
Check Eligibility online today or call 1.866.494.GRAD
Common Questions about the Teacher Forgiveness Program
What are the eligibility requirements?
You must have taught full-time at a Title I school for at least five consecutive complete academic years (at least one of which must have been after the 97-98 academic year). Contact us if you need any information regarding incomplete academic years
You cannot have had an outstanding Direct Loan or FFEL program loan balance at the time you obtained the loan(s) for which you are seeking forgiveness
The loans for which you are seeking forgiveness must have been disbursed on or after October 1st, 1998
The loan(s) for which you are seeking forgiveness must have been disbursed prior to the end of the fifth qualifying year of teaching service
You are not in default on the loan(s) for which you are seeking forgiveness
The loan(s) must be a Stafford Loan, or a Direct Consolidation Loan that repaid an eligible subsidized or unsubsidized Federal Stafford Loan, an eligible Direct Subsidized Loan or an eligible Direct Unsubsidized Loan (up to the amount of those eligible loans that were repaid through the Consolidation Loan), AND
You cannot have received benefit for the same teaching service under Subtitle D of Title I of the National Community Service Act of 1990
How do I find out if I am teaching in a low-income area?
A school is designated as "low income" if the school is in a school district that qualified for funds in the year for which the cancellation is sought under Title I of the Elementary and Secondary Education Act of 1965 as amended. To determine if the school that employs you is classified as a low income school, you can either contact the *Chief Administration Officer (see definition below) of the school where you are currently working or intend to work or click here to check your eligibility.
The chief administrative officer is the official in your school (such as a principal or assistant principal) with responsibility for supervising your employment as a teacher and who has access to records relating to your experience and qualifications for teaching.
What types of student loans are eligible?
The forgiveness amount will only be applied to Federal Family Education Loans (FFEL) and Direct Loans (Direct Subsidized (formerly known as Stafford), Direct Unsubsidized (formerly known as Stafford), and Direct Consolidation Loans (if the underlying loans are eligible loan types). This program is NOT available for Direct PLUS Loans, PLUS Consolidation Loans, Perkins Loans, Consolidation loans comprised of any ineligible loan types, and HEAL loans.
Where can I get an application to apply for the Teacher Loan Forgiveness Program?
The easiest way to obtain an application for Teacher Loan Forgiveness is to download one from our web site at Forms and Documents.
You can request an application by email (teacherforgiveness@graduatefund.com) or by calling the lender/servicer of your student loans. Also feel free to contact us at 1.866.494.GRAD and we will mail you the application and answer any questions you may have.
When applying for Teacher Loan Forgiveness, you must submit a written request, including your name, address, and social security number to the servicer of your student loans.
Your request must include the following statements:
I have not received a benefit through the Americorps Program under subtitle D of Title 1 of the National and Community Service Act of 1990 for the same teaching service for which I am seeking forgiveness
I have read, understand, and meet all of the eligibility requirements for teacher loan forgiveness
Under penalty of perjury, I swear to the accuracy of the information provided in this request
With your written request you must attach a document from the official in your school with the responsibility of supervising your employment as a teacher and who has access to your records relating to the information requested. Your request should include:
That you are employed as a full-time elementary school teacher who demonstrates knowledge and teaching skills in reading, writing, mathematics, and other areas of the elementary school curriculum
OR
That you are employed as a full-time secondary school teacher in a subject area that is relevant to your academic major
AND
Your academic years of service, including start dates and end dates for each year
The name, address, and phone number of the school at which you taught
That your school is a Title 1 school
The school official must sign and date your request
You may also include any other documentation that you think supports your request and will help determine your eligibility.
If I owe money to more than one lender both FFEL and Direct Loans, how do the funds get applied to the loan balance?
You will need to file an application for Teacher Loan Forgiveness with all your Loan Servicers. The Direct Loan Servicing Center will process your Direct Loan discharges and your FFEL Loan Servicers will handle FFEL discharges.
First, the discharge will be applied to all fees (NSF or late payment) across unsubsidized loans first, then to subsidized loans and lastly to outstanding fees on eligible consolidation loans.
After the forgiveness amount is applied to all fees, the remaining forgiveness amount will be applied to all outstanding interest on unsubsidized loans then subsidized loans, then to all outstanding interest on eligible consolidation loans.
Lastly, the remaining forgiveness amount will be applied to unsubsidized loan principal balances, to subsidized principal loan balances and to the outstanding principal on eligible consolidation loans.
