The Teacher Loan Forgiveness Program was implemented to encourage former students to enter and continue a career in the teaching profession. If a borrower works as a full time teacher for five consecutive years in lower income school districts, they may be eligible for an upfront forgiveness of up to $17,500 of federal student loan debt. Although, many other student loan forgiveness programs are retroactive after a certain number of payments have been made, this program can forgive up to $17,500 immediately. If any loan balance remains after the upfront forgiveness has been applied, teachers may still qualify for combination of multiple programs like The Obama Loan Forgiveness program (PAYE) and the Public Service Loan Forgiveness (PSLF). This can potentially give borrowers the benefit of an immediate upfront forgiveness, lower monthly payments and forgiveness over time.

Teacher Loan Forgiveness F.A.Q

What is better about the PAYE program versus other forgiveness programs?

The Obama Loan Forgiveness program generally gives you a lower monthly payment because it only considers 10% of your discretionary income instead of 15% like some of the other programs. The forgiveness term is also after 240 months instead of 300 months like other retroactive forgiveness programs.

Is a 0$ payment the same as a deferment or forbearance?

No, a 0$ monthly payment is actually considered a qualifying monthly payment towards the forgiveness term and it reflects positively as an on time payment towards your federal student loans.

Can the PAYE program combine with any other programs?

Yes, The Obama Loan Forgiveness program (PAYE) can be combined with The Public Service Loan Forgiveness program (PSLF), which gives you an income sensitive payment and cuts the forgiveness term in half from 240 months to 120 months.

What will happen to my loans if I lose my job and can no longer afford my payments?

The PAYE program will always give you a payment you can afford because it is recalculated each year based off of your income and expenses. If you happen to lose your job or see a reduction in income, your monthly payment will drop accordingly.


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