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Teachers, Child-Care Workers May Qualify
for Student-Loan Forgiveness
Certain teachers and child-care workers may benefit from new federal programs to forgive some or all of the student-loan debt they incurred to attend college.
The teacher loan-forgiveness program is restricted to new borrowers as of Oct. 1, 1998, who have taught at least five consecutive years, so few teachers currently qualify. Nonetheless, USA Funds® suggests that aid administrators advise recently hired teachers and current college students who are pursuing teaching degrees to keep this benefit in mind.
Another noteworthy program provides loan forgiveness for some child-care providers. Annual federal appropriations will establish funding for child-care-provider loan forgiveness each year. For the fiscal year that ends Sept. 30, 2001, the application period for child-care-provider loan forgiveness was scheduled to end Sept. 17.
Teacher loan forgiveness
Certain elementary and secondary teachers who teach for at least five consecutive years in schools serving low-income students may qualify to receive up to $5,000 in loan forgiveness on their Stafford loans or the outstanding portion of a consolidation loan that was used to repay a qualifying Stafford loan. To qualify, a teacher must meet the following criteria:
- Was a new borrower as of Oct. 1, 1998.
- Served as a full-time teacher for at least five years in a school serving a low-income area.
- Secondary-school teachers must teach a subject area that is relevant to their academic major.
- Elementary-school teachers must have demonstrated knowledge and teaching skills in reading, writing, mathematics and other areas of the elementary-school curriculum.
Additional restrictions and qualifying provisions may apply. Borrowers who believe they qualify for teacher loan forgiveness should be referred to the holder of their loans or their loan servicer.
Child-care-provider loan forgiveness
The U.S. Department of Education will repay up to 100 percent of an eligible child-care provider's Stafford-loan obligations. To qualify, a child-care provider must meet the following criteria:
- Was a new borrower as of Oct. 7, 1998.
- Has completed at least two consecutive years of full-time employment as a child-care professional serving children through 5 years of age in a licensed child-care facility that serves a predominantly low-income community.
- Has completed a postsecondary degree in early-childhood education.
Additional eligibility criteria may apply.
For more information, visit www.usafunds.org, the USA Funds Web site.
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