Financial Success and Student Loan Forgiveness
Dealing with “The Walking Debt”
- 14% of student loans default.*
- The average undergraduate borrower from the class of 2013 took on $28,400 in student loan debt.*
- Giant corporations can file for bankruptcy, but bankruptcy is not an option for student loan debt relief.**
- Families have inherited student debt of deceased loved ones.**
- Debt delays starting a family and making major purchases.**
There may be hope
Make a plan
- You may qualify for student loan forgiveness to erase some or all of your student loan debt.
- Begin to save for your future.
- A knowledgeable expert can provide the information you need to develop a successful financial strategy.
Stafford/Ford loan forgiveness program for teachers
- Must work at least five consecutive years of qualified full time teaching service in eligible school or educational service agency serving low income families;
- Must be a “new borrower”;
- Have an eligible Stafford/Ford Loan obtained through the Direct Loan or Federal Family Education Loan Programs (FFEL), Direct Loan or FFEL consolidation loan to repay an eligible Stafford Loan;
- Cannot be in default unless satisfactory repayment arrangements have been made;
- Have not received a benefit for the same teaching service through AmeriCorps or Public Service Loan Forgiveness Program.
- Received the loan for which you are requesting forgiveness before the end of your fifth year of qualifying teaching.
Forgiveness amounts are based on full-time:
- Highly qualified special education teacher for elementary school children with disabilities;
- Highly qualified special education teacher for secondary school children with disabilities;
- Highly qualified mathematics teacher for secondary school students;
- Highly qualified science teacher for secondary school studies;
- Secondary education teacher in a subject area relevant to academic major, or highly qualified secondary education teacher;
- Elementary teacher with demonstrated knowledge and teaching skills in reading, writing, mathematics and other areas of the elementary school curriculum, or highly qualified elementary education teacher.
Forgiveness amounts vary:
- up to $5,000 for some, and
- up to $17,500 for others
Perkins Loan Cancellation and Discharge
- Often referred to as a “Campus based loan”
- The Perkins loan program expired 9/30/15 but does not impact the loan forgiveness at this time.
- Unique requirements based on teaching field:
- Full time teacher in public or nonprofit elementary or secondary school system:
- Serving students from low income families
- Special education for children with disabilities
- Fields of mathematics, science, foreign language, bilingual education or any other field of expertise determined by the state education agency to have a shortage of qualified teachers in that state
- School operated by the Bureau of Indian Affairs or operated on Indian reservations by Indian tribal groups under contract with the Bureau of Indian Affairs.
- Up to 100% of loan cancelled over 5 years
- 15% first two years
- 20% third and fourth years
- 30% after fifth year
- Also offers concurrent deferment if performing qualifying service
- Obtain application from the business office of the college/university that made the loan.
Public Service Loan Forgiveness Program (PSLF)
- Full time service in public education or other qualifying public service organization
- Annually submit the Employment Certification Form.
- In some cases additional documentation may be requested:
- Income level does not directly impact eligibility, it does however impact your required monthly payment amount.
- Make 120 qualifying payments on loan (10 years), after Oct. 1, 2007
- Loan balance
- First forgiveness balances not granted until October 2017
Loan types eligible for forgiveness
- Any non-defaulted loan under the Direct Loan Program
- Direct Plus
- Direct Consolidated