1. Live The Life You Want Understanding Federal Student Loan Forgiveness Programs

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4. This workshop does not intend to provide borrowers with any financial advice concerning their student loans. While we can provide information, we cannot recommend or suggest courses of action.
Borrowers are solely responsible for any determination to enroll in an Income-Driven Repayment plan and/or federal loan forgiveness programs.
NEA and its affiliate staff cannot be held liable for borrowers’ decision to enroll or not enroll in federal student loan repayment plans or loan forgiveness programs.
VOICE OVER: It’s important that we do not present ourselves as student debt experts. We are not experts. We should frame DnD member workshops as opportunities to share information and collectively educate ourselves on the federal government loan repayment and forgiveness programs. We should never encourage members to enroll or not to enroll in programs. Moreover, we should encourage members to proactively conduct their own research on which program(s) make sense for them and their families.
This is workshop is to educate local and state affiliate staff on the federal student loan repayment programs.
DISCLAIMER: This workshop does not prepare participants to provide members any personal financial advice concerning their student loan debts. While we can provide members the information, we cannot recommend or suggest courses of action.
Borrowers are solely responsible for any determination to enroll in an Income-Driven Repayment and/or Public Service Loan Forgiveness programs.
NEA and its Degrees Not Debt trainers cannot be held liable for members’ decision to enroll or not enroll in a federal student loan repayment program.

5. Applying for your FSA ID
FSA = Federal Student Aid
FSA ID allows you to access federal tools that estimate any cost savings of Income Driven Repayment and/or Public Service Loan Forgiveness Programs.
Your FSA ID gives you access to your federal student loan information on the National Student Loan Database (NSLD), an online database operated by the U.S. Department of Education
Register for your FSA ID at
FSA = Federal Student Aid. Register for your FSA ID at
FSA ID allows you to access federal tools that estimate any cost savings of Income Driven Repayment and/or Public Service Loan Forgiveness Programs.
Your FSA ID gives you access to your federal student loan information on the National Student Loan Database (NSLD), an online database operated by the U.S. Department of Education
FSA ID was previously known as the FAFSA Pin.
FSA ID allows you to access your federal student loan information
FSA ID allows you to look up your loan type, your loan servicer (a private contractor hired by the federal government).

6. Loan Info
Go to the National Student Loan Database (NSLDS):
Under the tab, “Log into NSLDS” user your FSA ID to log in. Below is an example of what you will see.
Loan Info
There are many types of federal student loans, including direct and indirect loans, subsidized and unsubsidized loans, and other such as Federal Perkins Loans and Direct PLUS Loans.
Not all federal loans are eligible for the federal Income Driven Repayment programs.
We can identify your loan type using your FSA ID.
Only federal loans will be identified. No private loans will be included.

7. Loan Info Continued
In the example above, this borrower has 10 separate loans. The National Student Loan Database chart provides the following information:
Loan Type
Loan Amount
Loan Date (date borrower assumed debt)
Loan Amount Disbursed
Loan Amount Canceled (if any)
Outstanding Principal
Outstanding Interest
By selecting or using your mouse to click on each loan, we can find out the loan’s status – whether it is in repayment, forbearance, etc. – and the loan’s loan servicer.
Using the example above, let’s click on the first loan listed. Here’s what comes up for this borrower:

8. Teacher Loan Forgiveness
General Requirements:
Receive a Stafford Loan through the Federal Family Education Loan (FFEL) Program or have a Direct Loan (subsidized, unsubsidized or consolidated)
You were a new borrower (no outstanding balance on an FFEL after October 1, 1998)
You have been employed for at least five consecutive years in an elementary or secondary school designated as a low-income school
You are not in default on the loan for which you are seeking forgiveness
At least one of your five years of qualifying teaching service must be after the academic year
You received the loan for which you are requesting forgiveness before the end of your fifth year of qualifying teaching
Source:

9. Teacher Loan Forgiveness
You may receive up to $17,500 in loan forgiveness if you are:
“Highly qualified” full-time mathematics or science teacher in a secondary school
“Highly qualified” special education teacher
You may receive up to $5,000 in loan forgiveness if:
Your five years of qualifying teaching service began before October 30,2004 and you were:
A full time elementary teacher who demonstrated knowledge and teaching skills in reading, writing, mathematics, and other areas of the elementary school curriculum
A full time secondary teacher who taught in a subject area relevant to your academic major
Your first five years of qualifying service began on or after October 30, and you were a “highly qualified” full time elementary or secondary school teacher
Source:

10. Teacher Cancellation Low Income Directory
VOICE OVER:
This screen allows you to search the Teacher Cancellation Low Income Directory of public and private nonprofit elementary and secondary schools designated by the U.S. Department of Education as having a high concentration of students from low-income families. The Teacher Cancellation Low Income Directory also lists educational service agencies authorized by State statute that have been designated as serving a high concentration of low-income families. (If you are a student who needs to search a directory prior to , contact the following: for a Perkins loan the school that made you the loan; For Direct Stafford Loan, the Direct Loan Servicer; or for a FFEL Stafford Loan, your Stafford Loan holder or servicer in the Federal Family Education Loan Program.)
To look up a low-income school or educational service agency:
Select a state and the school or educational service agency name. If you are unsure of the school or educational service agency name, just select the state to see the list of all low-income schools and educational service agencies in that state.
Note that you can provide partial information for a search box. For example, if you select a State and enter "Red" in the School or Educational Service Agency Name search box, and then click the Search button, the results page will list schools and educational service agencies that begin with the word Red in their name such as Redwood, Redmond, etc. Using an example similar to the one above, to find all schools and educational service agencies that contain the text "red" anywhere in their name, enter "%red" into the name field. The results page will list schools and educational service agencies that have the word "red" in their name such as Fredrick High School, Bredington Elementary, etc. Either search method described can also be used in the Location field. All search results will be displayed in alphabetical order by school or educational service agency name.
Source:

11. Teacher Loan Forgiveness
Must complete a Teacher Loan Forgiveness Application and return it to the holder(s) of the loan(s) for which you are requesting forgiveness
The Administrator where you performed your qualifying teaching service must certify on the application that your teaching service met the requirements for loan forgiveness for all five years
Your Federal Student Loan Booklet:
student-loans_0.pdf
Student Loan Forgiveness Brochure:
for-teachers.pdf
Teacher Loan Forgiveness Application:
Application.pdf
Source:
Form:

12. Teacher Loan Cancellation Perkins
You qualify for cancellation:
if you 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.
If you had a portion cancelled for one year of teaching you can continue to get cancellation for service at that school even if no longer on list
You may qualify for deferment while qualifying for cancellation
Source:

13. Teacher Loan Cancellation Perkins Loans
Teaching in a designated subject shortage area
Each year the state education agency determines any subject shortage areas in the elementary and secondary schools within the state
Listing of Teacher Shortage Areas Nationwide Listing:
State listing of teacher shortage areas:

14. Teacher Loan Cancellation Perkins Loans
How do I apply for teacher cancellation?
Request the paperwork from the office that administers the Federal Perkins Loan program at the school that holds your loan
You must also provide any documentation the school requests to show that you qualify for cancellation
Cancellation amounts for years of service
If a borrower is eligible for teacher cancellation under any of the categories listed above, up to 100 percent of the loan may be canceled for teaching service, in the following increments:
15 percent canceled per year for the first and second years of service,
20 percent canceled for the third and fourth years, and
30 percent canceled for the fifth year.
Each amount canceled per year includes the interest that accrued during the year.
Source:

15. Public Service Loan Forgiveness Program Direct Loans
The PSLF Program is intended to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, you may qualify for forgiveness of the remaining balance due on your William D. Ford Federal Direct Loan Program loans after you have made 120 qualifying payments on those loans while employed full-time by certain public service employers.

16. Repayment Estimator Calculator
VOICE OVER:
Borrowers can determine whether they are eligible for an IDR plan, or any other federal repayment plan, by using the federal repayment estimator calculator. To maximize the repayment estimator calculator’s value, borrowers should register and obtain their Federal Student Aid (FSA) ID and sign into the calculator with the FSA ID. The FSA ID is a username ( ) and password, and is different than the FAFSA pin. A FSA ID (formally known as FAFSA PIN prior to May 10, 2015) is a borrower’s unique ID issued by the U.S. Department of Education. FSA ID will allow borrowers to access information about their federal student loans such as loan type, disbursal date, and loan servicer. It is also the equivalent of a borrower’s signature on any documents related to your student loans. You may have participants that have a FAFSA pin, as they applied and received federal loans prior to May 10, They would need to register and obtain a FSA ID.
Borrowers want to use the FSA ID to sign in, rather than selecting the “proceed” option (which permits individuals to use the calculator without their FSA ID) because signing in with the FSA ID automatically pulls that borrower’s individual loan profile into the calculator – and importantly, bases any estimate off of their unique borrower profile. If a borrower does not use their FSA ID to log in, they will be required to manually enter each individual federal student loan, including various interest rates, date disbursed, loan type and whether the loan is subsidized or unsubsidized.

17. PSLF Eligibility Qualifying Employment:
Local, state or federal government departments/organizations
501(c)(3) non-profit organizations
Non-Qualifying Employment:
Any private sector company/business or for-profit organization
Partisan political organizations, including labor unions
Must work full-time:
PSLF defines FT as at least an annual average of 30 hours per week:
If a borrower is employed at more than one qualifying part-time job, the borrower may meet the full-time requirement if their combined qualifying part-time jobs add up to 30 hours or more.
Employees under contract for at least 8 out of 12 months, borrowers must work at least 30 hours during the contractual period and receive credit by employer for a full year’s worth of employment.
(No voice over)

18. PSLF Application
Borrower must submit Employment Certification Form to FedLoan Servicing after their district HR’s department certified their employment.
Recertify annually.
Must be on an IDR repayment plan to maximize PSLF benefits. Only IDR and standard repayment payments are PSLF-eligible.
Loan switches hands from existing loan servicer to FedLoan Servicing.
VOICE OVER:
It will take at least 10 years (120 separate monthly qualifying payments) for an eligible borrower to become eligible for PSLF. Borrowers should annually submit the PSLF Employment Certification form. FedLoan Servicing, the loan servicer responsible for running the PSLF Program will use the information the borrower provide on the form to let the borrower know if you are making qualifying PSLF payments, and how many qualifying payments have counted towards the 120 required payments.
The federal government encourages borrowers to submit the Employment Certification form annually or whenever a borrower changes jobs, so that FedLoan Servicing can help the borrower track their progress toward meeting the PSLF eligibility requirements. If borrowers do not periodically submit the form, then at the time a borrower applies for forgiveness they will be required to submit an Employment Certification form for each employer where they worked while making the required 120 qualifying monthly payments.
FedLoan Servicing will review the Employment Certification form to ensure that it is complete, and to determine whether borrower’s employment is qualifying employment for the PSLF Program. FedLoan Servicing notify the borrower if the form you submitted is incomplete or if we cannot determine, based on the information provided on the form, whether your employment qualifies. FedLoan Servicing may ask the borrower to provide additional information or documentation to help us determine whether borrower were employed by a qualifying public service organization.
If FedLoan Servicing determines that the borrower’s employer is not an eligible public service organization, they will notify the borrower that their employment does not qualify. If the borrower believes there is additional information that would establish the eligibility of their employer, the borrower will have the opportunity to provide that information.
If FedLoan Servicing determines that borrower’s employment qualifies, and if some or all of borower’s federal student loans that are owned by the U.S. Department of Education are not already serviced by FedLoan Servicing (PHEAA), those loans will be transferred to FedLoan Servicing (PHEAA). Borrowers will then have a single federal loan servicer for all of your federally held loans. Borrowers will receive a notice if loans are transferred.
If FedLoan Servicing determines that a borrower’s employment qualifies, FedLoan Servicing will then review payment history (including any payments a borrower made to another federal loan servicer before the borrower’s loans were transferred) to determine how many payments made during the period of employment certified on the Employment Certification form are qualifying monthly payments for PSLF. FedLoan will then inform the borrower that their employment qualifies and notify them of the total number of qualifying payments made, and how many payments must still be made before the borrower can qualify for PSLF.
It is important to know that borrowers have complained that when their loans transferred hands from their current loan servicer to FedLoan Servicing, neither loan servicer was keeping track of the payments that they were making. It’s important to encourage borrowers to save their payment receipts to use as evidence that they made the 120 qualifying payments for loan forgiveness.
Borrowers will not automatically receive PSLF after I’ve made 120 qualifying monthly payments? 
After borrowers make their 120th qualifying monthly payment, they will need to submit the PSLF application to receive loan forgiveness. The application is under development and will be available prior to October 2017, the date when the first borrowers will become eligible for PSLF. Borrowers must be working for a qualified public service organization at the time they submit the application for forgiveness and at the time the remaining balance on your loan is forgiven. Note that loan amounts forgiven under the PSLF Program are not considered income by the Internal Revenue Service. Therefore, you will not have to pay federal income tax on the amount of your Direct Loans that is forgiven after you have made the 120 qualifying payments.

19. Resources NEA’s Degrees Not Debt http://www.nea.org/degreesnotdebt
Student Loan Information
Federal Student Aid ID (FSA ID)
National Student Loan Data System
Income Driven Repayment Plans
Repayment Plan Estimator
Public Service Loan Forgiveness
Public Service Loan Forgiveness Employment Certification Form

20. Resources continued….
Loan Consolidation Information Call Center
Teacher Loan Forgiveness Information
cancellation/teacher#teacher-loan-forgiveness
Teacher Loan Forgiveness Application givenessApp.pdf
Teacher Loan Forgiveness Forbearance Request Form forgiveness.pdf
Teacher loan Cancellation Information Request forms from the institution that holds your loan cancellation/teacher#how-do-i-apply-for-teacher-cancellation

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