Okay so you qualified for Teacher Loan Forgiveness. Great! There is a specific order in which your forgiveness money is applied. Wonder what it is? The list is explained two ways below for your convenience:
1) Goes to the Oldest Unsubsidized interest and principal, then the newest Unsubsidized interest and principal.
2)The Oldest to newest Subsidized Interest and principal
3) Oldest to newest Unsubsidized Interest and Principal for consolidation loans
4) Oldest to newest Subsidized interest and principal for unconsolidated loans
5) PLUS loans are not eligible so no funds are directed here.
So to review in general:
Forgiveness will be applied first to unsubsidized loan balances, followed by to the unsubsidized balances. Next it will be placed on any eligible consolidation loan portion (excluding PLUS portions) first to unsubsidized then to subsidized but not to any PLUS loans. These funds will be placed to the oldest loans in the category to the newest loans in the category.