To qualify for up to $5,000 loan forgiveness under this program you must not have had an outstanding balance on a FFEL or Direct Loan program loan as of October 1, 1998. To qualify for the increased amount of loan forgiveness up to $17,500 available for certain mathematics, science, and special education teachers, you must not have had an outstanding balance on a FFEL or Direct Loan program loan as of October 1, 1998, or on the date that you obtained a FFEL or Direct Loan program loan after October 1, 1998.
Although a summary of the new requirements is provided below, for complete information about this program, contact the holder of your loan.
To qualify, you must have been employed as a full-time teacher for five consecutive complete academic years in an elementary or secondary school that has been designated as a "low-income" school by the U.S. Department of Education.
Additionally:
* At least one of the five qualifying years of teaching must have occurred after the 1997-98 academic year.
* The loan must have been made before the end of the fifth year of qualifying teaching.
* The elementary or secondary school must be public or private nonprofit.
* A defaulted loan cannot be cancelled for teacher service unless you've made satisfactory repayment arrangements with the holder of the loan.
(Source: studentaid.ed.gov and Student Loan Forgiveness)
