While not as popular as Public Service Loan Forgiveness, Teacher Loan Forgiveness is another program that forgives a portion of your student loan debt. It only forgives a portion of your debt compared to PSLF which forgives the entire amount after the qualifying payments criteria is met.
However instead of 10 years of qualifying payments for PSLF, only five years of service in a Title I school is needed for TLF. If you qualify, you can have either $5,000 or $17,500 forgiven as a result (we will touch on these criteria later).
Other quick points to hit about TLF is that any forgiveness is non-taxable and that if your loan debt is less than the $5k or $17.5k after interest at the end of your 5 year period, you may qualify for a forbearance that will allow you to skip making payments all together. Similar to the forgiveness criteria this will be covered in a more detailed post at a later time.
The turn around time on this application is also quite long. While it usually only takes approximately 10 business days for a servicer to approve the application, it can take up to 90 business days for the Federal Student Aid organization to review, approve and apply the award to the borrower’s account.
Similar to PSLF and IDR plans, we will cover who qualifies, what loans qualify, and how to qualify. As always if you have any additional questions please contact me and I will be glad to go over the particulars and how they pertain perhaps more to your situation.