The Teacher Loan Forgiveness program is arguably the most beneficial of all the forgiveness options, as teachers are eligible for principal reduction and early ten year forgiveness. An eligible teacher can qualify for principal reduction of $5,000 to $17,500 on their loans, along with full forgiveness after a 10 year term. Any remaining balance at the end of the 10 years would be completely forgiven.
Your Federal Student Loans (Direct Loan or Federal Family Education Loan) must have originated after Oct 1, 1998.
If you are in default on a subsidized or unsubsidized loan, you are not eligible for forgiveness of that loan, unless you have made satisfactory repayment arrangements with the holder of the defaulted loan.
Note: All elementary and secondary schools operated by the Bureau of Indian Education (BIE)—or operated on Indian reservations by Indian tribal groups under contract with BIE—qualify as schools serving low-income students. These schools are qualifying schools for purposes of this loan forgiveness program, even if they are not listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.
A full-time secondary school teacher, teaching in a subject that was related to your academic major
You may receive up to $17,500 in loan forgiveness if you were:
If you were unable to complete an academic year, that year may still count towards your Teacher Loan Forgiveness five consecutive years if:
To be a highly qualified teacher, a public elementary or secondary school teacher, you must have obtained full state certification as a teacher; or: