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HISPANIC NETWORK MAGAZINE www.hnmagazine.com
HIGHER EDUCATION
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f youre a teacher thats still working to pay off your student loans, you may qual- ify for one of the several loan forgiveness programs designed for employed teachers. No matter your situation, income level or the details of the institution you teach at, chances are, one of these programs will work for you. Take a look at the details below:
Public Service Loan Forgiveness (PSLF) Program
This loan forgives the remaining balance on your Federal Direct Loans after 120 qualify- ing payments, estimated over 10 years. Unlike other programs, PSLF does not require you teach at a low-income pub- lic school but only requires that you work for qualifying employer. This includes gov- ernment organizations at any level (U.S. fed- eral, state, local, or tribal), not-for-profit orga- nizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code or other not-for-profit organizations that provide certain types of qualifying public services. You must have Direct Loans. If you have other types of federal loans, like FFEL or Perkins Loans, you must consolidate in order for those loans to qualify. To check which types of loans you have, log in to StudentAid. gov. You should repay your loans on an income-driven repayment plan if you want to get the most value out of the program. You can apply for an income-driven repay- ment plan on StudentAid.gov. In order for payments to count toward the 120 needed for forgiveness, you must meet specific require- ments. Loan amounts forgiven under PSLF are NOT considered taxable by the IRS.
Teacher Loan Forgiveness
Forgives up to $17,500 of your Direct or FFEL Subsidized or Unsubsidized Loans after
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Loan Forgiveness Programs for Teachers
By Nicole Callahan and Miranda Houchins
5 complete and consecutive years of teaching at a qualifying school You must have been employed as a full- time teacher at an eligible school for five com- plete and consecutive academic years, and at least one of those years must have been after the 1997-98 academic year. Certain highly qualified special education and secondary mathematics or science teach- ers can qualify for up to $17,500 in forgive- ness. Other eligible teachers can qualify for up to $5,000. PLUS Loans and Perkins Loans are not eli- gible to be forgiven through this program. Any time you spent teaching to receive ben- efits through AmeriCorps cannot be counted toward your required five years of teaching for TLF. To maximize your forgiveness amount, you can apply for a Teacher Loan Forgiveness Forbearance, which means you will not have to make monthly loan payments (how- ever, interest will still accrue). Borrowers who have a loan balance that is greater than the TLF amount they are applying for (either 17,5000 or $5,000) are not eligible for this type of forbearance. You can apply for TLF after you've completed the five-year teaching requirement.
Perkins Loan Cancellation for Teachers
Forgives up to 100 percent of your Federal Perkins Loan Program if you teach full-time at a low-income school or if you teach certain subjects. This program can only forgive your Federal Perkins Loans. Check to see if you have Perkins loans at StudentAid.gov. If youre eligible for this program, 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 30 percent canceled for the fifth year Each amount canceled per year includes the interest that accrued during the year. To find out if a school is classified as a low- income school, check our online database for the year(s) youve been employed as a teacher. Even if you dont teach at a low-income school, you may qualify if you teach math- ematics, science, foreign languages, bilingual or special education, or a different subject determined by your state education agency to have a shortage of qualified teachers in your state. Private school teachers can qualify if the school has established its nonprofit status with the Internal Revenue Service (IRS), and if the school is providing elementary and/or second- ary education according to state law.
State-Sponsored Student Loan Forgiveness Programs
Many states offer loan forgiveness pro- grams for teachers - especially if you teach in a high need area. The American Federation of Teachers has a great searchable database you can use to find state and local forgiveness pro- grams for which you might qualify. Check out aft.org and their loan forgiveness and funding database to find the right fit for you!
Source: studentaid.gov
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