Teacher Loan Forgiveness

Transcription

1 Teacher Loan Forgiveness Presented by: Craig Stevens, Regulatory Compliance Specialist For The NHHEAF Network Organizations Center for College Planning

2 Agenda TLF Background Forgiveness v. Forbearance Qualifications Loans Teaching Service School How to Apply Resources

3 TLF Background Introduced as part of HEA Amendments in 1998 Act created $5,000 in forgiveness $17,500 later added for specialized teachers Designed to promote students going to school to become and remain teachers Specifically promotes teachers in low-income communities Mixture of state and federal laws make determination

4 Forgiveness v. Forbearance TLF Program has an annual forbearance available Forbearance is available for borrowers completing requirements of TLF Forbearance only allowed if amount that will be forgiven will eliminate all outstanding FFELP or DL debt i.e. if qualifying for $5,000, must have less than $5,000 (including expected accrued interest) in total loan debt

5 Forgiveness v. Forbearance Forbearance form is self-certified, TLF is certified by school administrator School administrators: Principals, Asst. Principals, Superintendents, etc. Cannot be signed by Administrative Assistants, Secretaries, etc. If Forbearance is granted, interest will continue to accrue on all loan types

6 Qualifications - Loans TLF and Forbearance are for Stafford and Consolidations Borrower must have had no outstanding balance on October 1, 1998 in either the FFEL or Direct Loan Programs Could have had loans prior to 10/1/98 if they were completely paid off, not by consolidation, before new loans were borrowed. Consolidation loans underlying loans determine qualification

7 Loans Consolidation Example The Consolidation Loan is not eligible for TLF because the underlying loans were first disbursed prior to 10/1/1998

8 Qualifications - Loans Guarantors use the disbursement dates of the loan to determine eligibility National Student Loan Database System (NSLDS) Borrowers can check their own NSLDS record to confirm information Perkins Loans have their own forgiveness program, not eligible as part of Consolidation.

9 Qualifications Teaching Service Job service determines level of forgiveness borrower qualifies for Higher Education Act of 1998 created program with $5,000 loan forgiveness for teachers in low-income schools Taxpayer-Teacher Protection Act of 2004 introduced $17,500

10 Qualifications Teaching Service $5,000 Either Elementary or Secondary School Teacher State makes determination of Elementary v. Secondary Elementary School Teacher Teacher shows proficiency in reading, writing, math, and other areas, or Is Highly Qualified (state certification) Secondary School Teacher Teaching in subject relevant to academic major Is Highly Qualified (state certification)

11 Qualifications Teaching Service $17,500 Either Elementary or Secondary School Teacher Teaching as a Highly Qualified teacher for children with disabilities Special Education must be primary responsibility, not having children with disabilities integrated in a classroom Secondary School Teacher Only Highly Qualified Mathematics teacher Highly Qualified Science teacher

12 Qualifications Teaching Service Borrower must complete five (5) complete, consecutive academic years at a qualifying school Half-years could count, even in different academic years Borrowers may change schools part-way through qualifying teaching service and still qualify if both schools qualify Educational Service Agency after July 1, 2010, teachers employed by ESA will be considered eligible for any teaching service conducted in the school year.

13 Qualifications Teaching Service School years must be consecutive and complete academic years, with some exceptions: If a borrower misses teaching time for FMLA, Active Service Military Duty, or to attend Postsecondary schooling directly related to their teaching service Half-years of teaching service may count as full academic years if they are consecutive

14 Qualifications School Borrower s school must be low-income Low-income defined by mix of federal and state laws School must have at least 30% of students eligible for Title I services (info collected by state Dept of Ed) Title I services include free and reduced lunch programs School must appear on US Dept of Ed s Teacher Cancellation Low Income (TCLI) database *all schools that appear on TCLI are Title I, but not all Title I schools appear on TCLI

15 Qualifications School Schools appear and fall off TCLI database annually depends on populations of students attending Combined elementary/middle/high schools generally appear on database separately Once school appears on list, borrower s qualifying teaching service begins If a school falls off the list in subsequent years, borrower is still performing qualifying service

16 How to Apply Contact your lender/servicer If you are a NHHELCO/GSM&R Borrower, you can download the form here: and fax it to Customer Services: F: or call to speak to a Customer Service Representative

17 Weblinks Student NSLDS link TCLI Database Department of ED Teacher s Website cancel.jsp?tab=repaying

18 Other Programs Income-Based Repayment (ibrinfo.org) Repayment Program using borrower s income versus the amount owed in federal loans Borrowers pay a percentage of their income over the federal poverty guidelines Public Service Loan Forgiveness Direct Loan Program Loans forgiven for 10 years of public service