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Teacher Forgiveness Programs January, 2003 Prepared by Steve Bomeisl New York State Higher Education Services Corporation

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Presentation on theme: "Teacher Forgiveness Programs January, 2003 Prepared by Steve Bomeisl New York State Higher Education Services Corporation"— Presentation transcript:

1 Teacher Forgiveness Programs January, 2003 Prepared by Steve Bomeisl New York State Higher Education Services Corporation

2 History of Teacher Forgiveness Programs in FFELP Established in 1992 Reauthorization Allowed forgiveness of up to 100% of balance after working 5 years Congress never funded 1992 “Federal Stafford Loan Forgiveness Demonstration Program” (Teaching and Nursing professions)

3 “Targeted” Teacher Deferment Available to “new borrowers” with loans made from July 1987 – June Up to 3 years as a full time teacher Teaching in a teacher-shortage area designated by Chief State School Officer Teacher shortage area is NOT restricted by community location

4 Update On Teacher Forgiveness Program 1998 Reauthorization Program is funded Two major restrictions: Eligibility – available to new borrowers Forgiveness amount – up to $5,000

5 Eligibility Available to new borrowers on/after 10/1/98 Borrowers must teach 5 consecutive complete academic years One of those 5 years must begin after the academic year Teach in elementary or secondary “Low Income” school

6 Forgiveness Amount Principal and interest up to $5,000 O/S balance calculated after borrower teaches 5 years No refund of any overpayments allowed

7 How Can Schools Help? Exit Interview – provide fact sheets Reconfirm: “New Borrower” and $5,000 max Encourage contact with lenders or HESC

8 Other Forgiveness/Repayment Programs Forgiveness for Child Care Providers – HEA 1998 For new borrowers as of 10/7/98 AA or Bachelor’s – EARLY CHILDHOOD EDUCATION Work full time for 2 years in daycare “facilities” that serve low-income communities Payoff – up to 100% after 5 years of qualified employment

9 Other Forgiveness/Repayment Programs Repayment of Title IV Loans for Federal Employees (4/11/2001) Financial incentive to recruit “highly qualified” personnel Three years minimum service requirement Approval and procedures are agency specific Repayment amount - $6,000/$40,000 total

10 Loan Forgiveness “Proposals” in Congress For full time Head Start Teachers (Perkins and FDSL only) Increase Teacher Forgiveness to $17,500 (HR5091) Forgive Perkins for Active Duty personnel (Frank) S1806 – Forgiveness for Pharmacists to address serious shortage of pharmacists Other proposals on Congressional and State Websites

11 Other Teacher Forgiveness Program Websites


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