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Student Loan Forgiveness Program for Low Income Teachers

By on January 10, 2012
Student Loan Forgiveness Program for Low Income Teachers

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?

Amy

Dear Amy,

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.

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

4 Comments

  1. Mary Lorson

    January 25, 2012 at 5:02 am

    This may change soon too, as the programs seem to be shifting…

  2. Gamache005

    January 23, 2012 at 12:17 pm

    This was very helpful! I really enjoy the blog and the range of questions you tackle.

  3. Daniel Milstein

    January 10, 2012 at 10:59 pm

    That is so true. As an author and business man, I can relate to how you said “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”. I hope more people discover your blog because you really know what you’re talking about. Can’t wait to read more from you!

    • Steve Rhode

      January 11, 2012 at 9:31 am

      Daniel,

      Thanks for the compliment. One way you can easily help is to link to this site. It’s a simple thing to do so people can find it.

      Steve

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