Presented by James Copeland, Jr., Ed. D. March 24, 2016 Student Loan Forgiveness Programs and Teacher Loan Forgiveness Program

Purpose of PSLF The PSLF Program was established to encourage individuals to work in public service by forgiving the remaining balance of their Direct Loans after they have made 120 qualifying payments while employed by a qualifying employer

PSLF Basics Qualifying Payments In Qualifying Repayment Plans …When Applying For & Receiving PSLF On Direct LoansWhile Working For A Qualifying Employer… Per IRS, forgiven amount is not taxable income

PSLF Eligible Loans Federal Direct Student Loan PSLF is only for Direct Loans, but all Direct Loans qualify Parent PLUS Loans - NO Perkins Loans - NO FFELP Loans - NO Direct Consolidation Loan - YES 4

PSLF Qualifying Employment 5 501(c)(3) not-for-profit organization Other not-for-profit organizations providing specific qualifying services Any government organization It matters where you work, not what you do… 5

PSLF Full-Time Employment Full-time is the greater of: Employer’s definition of full-time 30 hours per week May work multiple qualifying part-time jobs that equal full-time For borrowers at a non-profit organization, hours spent in religious instruction, worship services, or proselytizing do not count 6

PSLF Qualifying Repayment Plans 10-Year Standard IBR ICR Pay As You Earn REPAYE Others ≥ 10 Year Standard Income-driven plans are most likely to yield a balance for forgiveness 7

PSLF Qualifying Payments 120 separate monthly payments* After October 1, 2007 Do not need to be consecutive Must be for full amount due under plan Must be made within 15 days of due date *Exception for AmeriCorps, Peace Corp, and DOD 8

PSLF Payment Amount Multiple partial payments Count as one payment All must be received within 15 days of due date Payments made when not required Do not qualify Lump sum payments Count as one payment Exceptions for AmeriCorps, Peace Corp, and Department of Defense borrowers 9

PSLF Employment Certification FedLoan Servicing determines borrower has direct loans All federally- held loans transfer to FedLoan Servicing Loan s were made during employed period 10

PSLF Employment Certification Form 11

PSLF ECF 12

PSLF ECF 13

PSLF ECF 14

PSLF ECF 15

Common ECF Issues Inaccurate or Missing End Date on ECF Form  Blank end date when the borrower is still employed vs. checking “still employed”  Check Box 15 to certify accuracy  Missing required fields (such as EIN number) Payment Tracking  Must submit an ECF for an updated qualifying payment count  Payments made to other servicers (not just FedLoan) can be counted toward PSLF 16

17 Eligible Loan Types Employer Eligibility All Federal loans can be eligible through Direct Loan Consolidation. Consolidation and PSLF Appropriate Time to Begin Tracking for PSLF Qualifying Payment Plans Common Program Misconceptions Qualifying employment for the PSLF Program is not about the specific job a borrower does, but rather, who the employer is. Qualifying repayment plans include all income-driven repayment plans and the 10-year Standard Repayment Plan. Consolidating Direct Loans will erase any qualifying payments made. Borrowers shouldn’t wait to submit an ECF until after they have made 10 years of qualifying payments.

PSLF Qualifying Employment 18

PSLF Processed ECF’s ,325 Processed Source: FedLoan Servicing 392,571 (70%) Approved 171,754 (30%) Denied

PSLF Processed ECF’s 20

PSLF Qualifying Payments 21

PSLF Qualifying Repayment Plans 22

QUESTIONS? Visit StudentAid.gov/publicservice for more information about PSLF. 23

Teacher Loan Forgiveness Program

Purpose of TLFP The Teacher Loan Forgiveness Program is intended to encourage individuals to enter and continue in the teaching profession. Under this program, if you teach full-time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families, and meet other qualifications, you may be eligible for forgiveness of up to $17,500.00

Eligibility Requirements No outstanding balance on Direct Loans or Federal Family Education Loan (FFEL) Program loans as of Oct. 1, 1998, or on the date that you obtained a Direct Loan or FFEL Program loan after Oct. 1, Subsidized or unsubsidized loan, must not be in default therefore are not eligible for forgiveness unless you have made satisfactory repayment arrangements with the holder of the defaulted loan. The loan(s) for which you are seeking forgiveness must have been made before the end of your five academic years of qualifying teaching service You must have been employed as a full-time teacher for five complete and consecutive academic years, and at least one of those years must have been after the 1997–98 academic year.

Qualifying Loan Programs Direct Subsidized Direct Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans

School Requirement(s) You must have been employed in an elementary or secondary school that: Qualifies for funds under Title I of the Elementary and Secondary Education Act of 1965, as amended; Has been selected by the U.S. Department of Education based on a determination that more than 30 percent of the school’s total enrollment is made up of children who qualify for services provided under Title I Is listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. Note: If this directory is not available before May 1 of any year, the previous year’s directory may be used

School Requirements(s) Cont. IMPORTANT: 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.

Teaching Requirements You must teach full-time for five complete and consecutive academic years. Service Beginning on or After Oct. 30, 2004 If your five complete and consecutive years of qualifying teaching service began before Oct. 30, 2004, please note the following: You may receive up to $5,000 in loan forgiveness if, as certified by the chief administrative officer of the school where you were employed, you were full-time elementary school teacher teaching skills in reading, writing, mathematics, and other areas of the elementary school curriculum; or full-time secondary school teacher who taught in a subject area that was relevant to your academic major. You may receive up to $17,500 in loan forgiveness if, as certified by the chief administrative officer of the school where you were employed, if you were full-time mathematics or science teacher in an eligible secondary school; or special education teacher whose primary responsibility was to provide special education to children with disabilities, and you taught children with disabilities that corresponded to your area of special education training and have demonstrated knowledge and teaching skills in the content areas of the curriculum that you taught.

Perkins Teacher Cancellation

Applicant qualifies for cancellation (discharge) of up to 100 percent of a Federal Perkins Loan if they have served full-time in a public or nonprofit elementary or secondary school system as a teacher in a school serving students from low-income families; or special education teacher, including teachers of infants, toddlers, children, or youth with disabilities; or teacher in the fields of mathematics, science, foreign languages, or bilingual education, or in any other field of expertise determined by a state education agency to have a shortage of qualified teachers in that state. Eligibility for teacher cancellation is based on the duties presented in an official position description, not on the position title. To receive a cancellation, you must be directly employed by the school system. There is no provision for canceling Federal Perkins Loans for teaching in postsecondary schools. Note: Applicant also qualifies for deferment while performing teaching service that qualifies for cancellation. Contact the school that holds your loan for information on applying for deferment.

Purpose of Teacher Cancellation If you have a loan from the Federal Perkins Loan Program you might be eligible for loan cancellation for full-time teaching at a low-income school, or for teaching in certain subject areas. You can also qualify for deferment for these qualifying teaching services. Check with the school that made your Federal Perkins Loan for more information.

Additional Teaching Considerations for Perkins Cancellation Teaching Part-time at Multiple Schools Teaching at a Private School Teaching at a Preschool or Prekindergarten Program Teaching at Low-income Schools Teaching at an Educational Service Agency Teaching Special Education Teaching in a Designated Subject Shortage Area Teacher Cancellation Low income Directory

Useful Links for State Contacts, Teacher Shortage listing and Repayment Info State Contact Information Directory Teacher Shortage Area Nationwide Listing Repayment of Loan, Getting out of Default

Questions Visit for more information about TLFP