What loans qualify for Teacher Loan Forgiveness?

Like other programs, there are loans that do and don’t qualify for the Teacher Loan Forgiveness program.  This will depend primarily on loan type and date.  Like most things with forgiveness programs, it is very black and white without much room for interpretation.

In order to qualify for this program, you must not have had an outstanding balance on Direct Loans or FFELP loans as of October 1, 1998.  If your loans are older than this date, it will make you ineligible.  However you may still qualify for Public Service Loan Forgiveness.

A consolidation loan is eligible however only if all the underlying loans are eligible.  If any of the underlying loans inside the consolidation were made prior to 10/2/98, the consolidation loan would not be eligible.

Also not eligible is any PLUS loans.  This includes both Parent PLUS and graduate PLUS loans.  Loans disbursed after the 5th year of teaching are also not eligible for forgiveness.  For example if your eligible five years ended in 2008, a loan you obtained in 2010 would not be eligible.  Also in the same way if a loan received during your 5th year has a term end date after your eligibility end date you are not eligible.

Here is an example to illustrate that last part.  A loan will cover a certain term.  So let us say that the disbursement date of the loan is February 8 and the term end date is in November.  However your 5th year ends in June, this loan would not be eligible.  It does not matter when the loan was disbursed but rather what the end date is of the term that it covers.

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