I am a student enrolled in a masters program for special education. When I began school I decided to enter the student loan forgiveness program, which qualifies me to receive up to $17,500 of my loans being paid off, as long as I teach in a title 1 school for five years in a highly qualified area (which I qualify for).
My question is, once I complete the program, at that point am I obligated to start paying back my loan/interest and then after five years I will receive up to $17,500? Or is there a way to postpone the loans until after the five years or completed?
Under the Stafford Loan Forgiveness Program for Teachers your maximum forgiveness amount would be $17,500 from the balance that you owe at the end of five years.
Unfortunately you do not get a pass on payments till that forgiveness date. Your loans must not be in default to be eligible.
But I’m wondering if the Public Service Loan Forgiveness Program might not be a better fit for you.
The downside is that your loans would not be forgiven for ten years but at the end of that time the approved loans would be completely forgiven. Additionally, you could enter into the Income Based Repayment (IBR) program right now to get a really low payment.
Check out the Public Service Loan Forgiveness Program here and let me know if that might be a better approach.
Please post your responses and follow-up messages to me on this in the comments section below.