Teacher Loan Forgiveness
Loan Forgiveness was designed as an incentive to enter and continue in the
teaching profession and provides loan reimbursement once a teacher has
completed five consecutive, full-time years of service at a qualifying
low-income elementary school, secondary school, or educational service agency.
The Teacher Loan Forgiveness program pays a $5,000 - $17,500, one-time only
reward towards Federal Stafford loans. For more details on the requirements and
eligibility visit the Federal Student Aid website.
at least 30% low-income families qualify as low-income. For a list of
low-income schools, please visit the Teacher Cancellation Low-Income School Directory (TCLI). Search
the state and the year the teaching service began. The list for the current
school year will be entered into the federal database in April; the most
up-to-date list may be from the previous school year.
the school is not included in the TCLI for the specified year, the school
administrator can complete the School Verification Form for
KDE approval. This form will not be
accepted unless it is completed/verified by a school or district administrator.
Teacher Loan Cancellation
A teacher with a loan from the Federal Perkins Loan Program, teaching at a qualifying low-income school or in certain subject areas can qualify for loan cancellation. Up to 100% of the loan may be cancelled for teaching service. 15% is canceled for the first and second years of service, 20% is canceled for the third and fourth years of service, and 30% is canceled for the fifth year of service.
The TEACH Grant provides up to $4,000 per year to students if they agree to teach in a "high need field" for four complete academic years at qualifying low-income schools. A "high need field" includes academic disciplines/subject areas identified as teacher shortage areas at the time the grant recipient begins teaching in that field. For a complete list of high need fields in Kentucky, please consult the Critical Shortage Instructional Areas and Subjects. Unlike loan forgiveness and cancellation, the TEACH Grant is handled by participating colleges and universities. For a list of participating Kentucky colleges and contact information, please consult the TEACH Grant Contact Sheet.
Public Service Loan Forgiveness
Public Service Loan Forgiveness (PSLF) began in October 2007 and is available for individuals who work full-time for the government or nonprofit organizations for at least ten years and have made 120 on-time payments after October 2007. The first borrowers become eligible for PSLF in October 2017 and the application is expected to be released before that time.
Any loan received under the William D. Ford Federal Direct Loan Program qualifies for forgiveness. Although other federal student loan programs, such as the Perkins Loan Program, do not qualify, they can be consolidated into a Direct Consolidation Loan in order to become eligible for Public Service Loan Forgiveness. To determine if your employment is eligible for PSLF, it is recommended that you complete the Employment Certification for Public Service Forgiveness Loan Forgiveness form annually or whenever you change jobs. The form should be submitted to FedLoan Servicing.
It is important to note that a student loan borrower's forgiveness program may not be binding in some circumstances and could be rescinded.