LOAN FORGIVENESS BENEFIT CHART



QUICK REFERENCE CHART FOR TEACHER LOAN BENEFITS

To Help Teachers Determine if their Student Loans have any Forgiveness/Deferment/Cancellation Benefits. See 5-page Fact Sheet for detailed information.

|Type of Loan |Date FIRST Loan was Taken | | | | | |

|( |Out |Benefit |How the Benefit is Earned |When Is Benefit Received? |What should |Where do you get the forms to |

| |This Determines Benefit | | | |you do? |apply? |

| |Eligibility | | | | | |

|Stafford |ONLY on or after Oct. 1, |Up to a $5000 |After teaching for | At end of fifth |• Make regular loan |From Loan Co. or |

|( |1998 |forgiveness benefit per |5 consecutive years |consecutive year of teaching in a |payments. Submit |TEA website: |

| |On date of 1st loan you |teacher on total balances of|in a designated low-income school.|designated |forgiv-forebearance |tea.state.tx.us |

| |must have no outstanding |his/her loans. (Federal | |low-income school. |form when balance |--click on home |

| |FFELP (Stafford, SLS) or |Consolidation loan |(see definition below) | |due is near $5,000. |page pie chart |

| |Direct loan taken out |is O.K. to get for these | |(At least one yr. must be after |• At end of 5th consec. |“for teachers” |

| |before 10-01-98. |loans.) | |‘97-‘98 school year) |yr., submit forgiv. |(Send to Loan Co.) |

| | | | | |applic. form to loan | |

| | | | | |holder. | |

| | | | | |No refunds possible | |

|Stafford |Between |NO Benefit at all because | | | | |

|( |July 1, 1993 & Sept. 30, |the Congress did not fund | | | | |

| |1998 |forgiveness program that was| | | | |

| |Even if additional loans |legislated in l992. | | | | |

| |made after 10-01-98 = No | | | | | |

| |benefit for any. | | | | | |

|Stafford |ONLY Between July 1, 1987 &|ONLY a Payment Deferment | Must teach in a subject-matter|Whenever you apply. (Be sure of |Use “Education Related Deferment|From Loan Co. or TEA website: |

|( |June 30, 1993 |benefit - up to 3 years – |teacher shortage area in years you|eligibility) |Request - EDU” form to apply. |tea.state.tx.us |

| |Additional later loans |No forgiveness! |apply. |Warning:This benefit is lost if / | |(Send to Loan Co.) |

| |elig. too | |(See list below) |when loans are consolidated. | | |

|Perkins |On or After |100% |After teaching five years in a |Partial Forgiveness is earned as |• At beginning of each |From the college or University|

|( |July 23, 1992 |Forgiveness ( |designated low-income school |follows: |school year, notify |where you took out your |

| |( |Either of 2 ways: |OR | |college or university |Perkins Loan. |

| | | |in a designated subject-matter |End of yr 1 & 2 = 15% ea |where loan was | |

| | | |shortage area |End of yr 3 & 4. = 20% ea |taken out and tell |(Send to College or |

| | | | |End of yr 5 = 30% |them where & what |University) |

| | | |Same as above, but |(Total of 100%) |you are teaching. | |

| |Prior to |100% |Subj. matter shortage area |Warning: Never consolidate a Perkins |• At end of each | |

| |7-23-92 ( |Forgiveness ( |service counted only after Oct. 7,|Loan with other loans, or will lose |school year, fill out | |

| | | |1998 |Perkins benefits! |the application to | |

| | | | | |apply for benefit. | |

Texas Subject-Matter Shortage Areas are: Bilingual, ESL, Math, Science, Special Ed, Foreign Language, (computer) Technology Applications.

Designated Low-Income Schools are: Schools with greater than 30% low-income student enrollment in a DISTRICT eligible for Title I funds.

Dates of Loan Benefits: were determined by dates Congress passed legislation.

[Texas Education Agency Oct. 2002]

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