University of Oregon College of Education

Did You Know? The federal government has recently increased the amount of a Stafford or Perkins student loan that can be forgiven for certain jobs in teaching. This change affects individuals who initiated a Stafford or Perkins loan after October 1, 1998, including those who will take out one of these loans in the future.

The HERA authorizes up to $17,500 in student loan forgiveness for certain full-time secondary school teachers of mathematics or science who meet the "highly qualified" teacher definition under the No Child Left Behind Act (NCLB). The HERA also authorizes up to $17,500 in student loan forgiveness for certain highly qualified full-time elementary and secondary school special education teachers whose primary responsibility is to provide special education to children with disabilities. To qualify, a special education teacher must be teaching children with disabilities that correspond to the teacher’s special education training and must have demonstrated knowledge and teaching skills in the content areas of the elementary or secondary school curriculum in which he or she is teaching.

In addition, teachers who do not teach in the specialties noted above and began teaching after October 30, 2004, may be eligible for up to $5,000 in student loan forgiveness, so long as they meet the "highly qualified" teacher definition under NCLB and the eligibility requirements set forth below. Teachers who began their teaching service prior to October 30, 2004, continue to qualify for up to $5,000 in student loan forgiveness and are not required to meet the "highly qualified" teacher definition.

Applications for loan forgiveness are available from the lender or servicer of the teacher's outstanding student loan in the FFEL program. Applications are available from the Direct Loan Servicer if the teacher has a Federal Direct Loan.

Federal financial aid websites offer detail regarding the various categories of eligibility and definition of "highly qualified" teacher.

Teacher Loan Forgiveness Eligibility Rules
Applicable to all Federal Family Education Loan (FFEL) and Federal Direct Loan Program borrowers, the following rules apply to all applicants for Teacher Loan Forgiveness benefits:
• A teacher seeking student loan forgiveness must be a new borrower, which is defined as a borrower who did not have an outstanding balance on a FFEL or Direct Loan on October 1, 1998, or on the date the borrower obtained a FFEL or Direct Loan after October 1, 1998.
• Eligible loans include Federal Stafford Loans (subsidized and unsubsidized); Federal Direct Stafford/Ford Loans (Direct Subsidized Loans); Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans); and any portion of a Federal Consolidation Loan or Federal Direct Consolidation Loan that was used to pay off one of these eligible loans.
• The loan cannot be in a default status.
• A teacher must have taught for five consecutive complete academic years in an eligible, low-income school. A low-income school is an elementary or secondary school that:
1) is in a school district that qualifies for funds under Title I of the Elementary and Secondary Education Act of 1965, as amended;
2) has been selected by the Secretary based on a determination that more than 30 percent of the school’s total enrollment is made up of children from low-income families; and
3) is listed in the annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.

Questions? Contact the Federal Student Aid Information Center (FSAIC) at 1-800-4-FED-AID.