Qualifying for a Loan Gives Teachers Loan Gratitude and Peace of Mind
For some students, loan forgiveness may be an appealing option, given that they meet certain qualification requirements. Loan forgiveness is when a lender agrees to forgive some or all of your debt in return for you not paying back the forgiven amount due to your employment. Forgiveness can occur in exchange for a lower monthly payment, forgiveness can also come in the form of deferred payments where the loan is forgiven while you continue to make regular payments, or forgiveness can come in the form of a principal reduction where the amount owed is reduced and the balance forgiven. Of course, the government will not offer forgiveness in this case since it does not make any profit from these loans. Nevertheless, some people would still want to look into loan forgiveness programs and the qualifications needed to qualify.
If you are in a position in your current employment that qualifies for loan forgiveness but you cannot qualify for loan forgiveness because you are unemployed, you may still be able to find relief through other programs. Loan repayment plans are only available to highly qualified full-time secondary school teachers who work in public schools. This includes both charter and public school districts. There is not an exemption for teachers in private schools, military or for-profit schools. Loan repayment programs are usually only available to borrowers who were awarded the loan while they were working.
To find out if you qualify for loan forgiveness, you will need to contact your loan provider. Each of the student loan providers offers different qualification requirements. To determine whether or not you qualify for federal student loan forgiveness, you will need to apply for a Free Application for Federal Student Aid (FAFSA).
A majority of the qualifying teachers will qualify for federal relief programs. According to Department of Education data, almost one in five teachers will qualify for federal help through the Department of Education. It should be noted that the eligibility requirements vary from year to year and you may be eligible for relief even if you were not planning on returning to school the next year. To determine if you qualify for federal loan forgiveness for teachers, you will need to contact the Direct Loan Servicing Center at catalog.edirectgov or your financial aid office.
The most important aspect of qualifying for federal student loan forgiveness for teachers is the credit rating of the teacher. According to the government data, nearly one in four teachers who applied for federal assistance in 2011 had a poor credit rating. A poor credit rating can make it difficult to obtain any type of financial assistance from the government including loans and grants. One way to improve your credit rating for federal assistance is to begin a payment plan as soon as possible.
Teachers who are considered low income may also qualify for other types of financial assistance. Loan forgiveness programs for low-income teachers can often be found through the Department of Education, but specific eligibility requirements may vary from one program to the next. For example, while the Department of Education offers a subsidized Stafford Loan, their other borrower relief options include Perkins, PLUS and FFEL programs. Each of these programs have different qualification requirements.
Eligibility requirements for federal student loans for those with disabilities vary from one program to another. In general, the higher your income, the more likely you will qualify for loan forgiveness. If you have physical health problems, you may be able to reduce your monthly payments through loan forgiveness programs by getting a subsidized private loan. Also, if you meet the economic eligibility guidelines for disability tax credit (EIC) eligibility you could also lower your monthly payments and receive a greater amount of debt forgiveness than if you did not meet the EIC guidelines.
One thing that teachers must do to qualify for loan forgiveness for teachers is to show evidence of continuous employment with a public agency (the government). One of the ways that teachers show continuous employment is by getting employed on a regular basis with a local, state or national education program. The most common ways to get this evidence is by showing pay stubs from past years, proving that you are a full-time teacher and that you meet the low-income qualifying school district’s income and enrollment guidelines. Once you apply for loan forgiveness for teachers, the school district will make you aware of what specific documentation you need to submit so that you can qualify. Some districts require that you submit copies of pay stubs, while others will not consider your application if you do not provide the requested documentation.