Perkins Loan Forgiveness Program

The Perkins Loan Forgiveness Program was the first to provide for cancellation of loans for teachers in low-income school districts.

A 2005 Second Circuit decision broadened the Perkins Loan Forgiveness Program to include numerous occupations related to teaching, public interest law and social work. Since the Second Circuit decision, the Department of Education has clarified its position in a “Dear Colleague letter” explaining that the program has indeed expanded to include numerous occupations that are considered socially desirable professions.

A short list of covered occupations include:

  • Full-time nurses or medical technicians;
  • Full-time law enforcement or correction officers;
  • Full-time staff members in the education component of Head Start;
  • Military service;
  • VISTA or Peace Corps volunteers;
  • Full-time fire fighters in local, state, or federal fire departments;
  • Full-time speech pathologists with master’s degrees working in certain elementary or secondary schools;
  • Certain librarians working in certain schools;
  • Full-time attorneys employed in public or community defender organizations.
Borrowers must perform uninterrupted service for a specific length of time to qualify for a Perkins loan discharge. However, the Department of Education has waived the continuous service requirement for borrowers who are members of the military reserves or who are regular active duty members of the Armed Forces.
It is important to note that borrowers lose access to Perkins Loan Forgiveness Program if they consolidate their loans with “Direct Loans.”

Check the following website for more information:

De La Mota v. U.S. Dep’t of Educ., 412 F. 3d 71 (2d Cir. 2005)

U.S. Dep’t of Educ., Child or Family Service Loan Cancellation Benefit in the Federal Perkins Loan Program, Dear Colleague Letter GEN-05-15 (Oct. 19, 2005); 34 C.F.R. § 674.56(b).

Dunne Law Offices, P.C.
1500 John F. Kennedy Boulevard, Suite 200
Philadelphia, PA 19102
(215) 854-6342 (Office)
http://www.thephiladelphiabankruptcyattorney.com

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Teacher Loan Forgiveness Program

Teachers who are full time and work five (5) consecutive years in certain schools that serve low income families are eligible to erase $5,000.00 of their federal student loans.

Math or Science teachers in eligible secondary schools and special education teachers in eligible elementary or secondary schools are allowed to erase up to $17,500.00 of their student loans in return for five (5) consecutive years of employment in certain schools that serve low income families.

The Teacher Loan Forgiveness Program under the FFEL Program and the Direct Loan Program apply only to borrowers with no outstanding loan balances as of October 1, 1998, or later.

FFEL and Direct Loan borrowers are not eligible for the Teacher Loan Forgiveness Program if their loans are in default status. If a borrower is in default status, it is imperative that they get out of default status by taking advantage of the Income Based Repayment (IBR) Program in order to establish their eligibility to participate in the loan forgiveness program.

It is important to note that teachers can take advantage of multiple loan forgiveness programs simultaneously. For example, teachers can apply for the Teacher Loan Forgiveness Program and the Public Service Forgiveness Program at the same time.

Check the following website for more information:

http://ibrinfo.org/

http://studentaid.ed.gov/students/attachments/siteresources/LoanForgivenessv4.pdf

http://studentaid.ed.gov/students/attachments/siteresources/PSLF_QAs_final_02%2012%2010.pdf

Dunne Law Offices, P.C.
1500 John F. Kennedy Boulevard, Suite 200
Philadelphia, PA 19102
(215) 854-6342 (Office)
http://www.thephiladelphiabankruptcyattorney.com

Loan Forgiveness Program

This program is available to all borrowers who work in public service jobs for ten (10) years and participate in a eligible repayment plan (IBR or ICR). The remaining balance of the student loan (principal and interest) is forgiven after ten years of public service is completed.

The program applies only to Direct Loans which encompasses Stafford, Plus, and Consolidation loans. Some borrowers may find it advantageous to consolidate their direct loans with their non-direct federal government loans in order to take advantage of this benefit.

Borrowers with non-direct loans should consolidate with direct loans as soon as possible because only payments made through the Direct Loan Program count towards the ten year forgiveness period. Borrowers who have previously consolidated their loans are eligible to reconsolidate their loans (combine direct loans with non-direct loans) to take advantage of this loan forgiveness program.

In order to qualify, borrowers must not be in default and must have made 120 payments on their loans after October 1, 2007. Payments can made through any of the eligible repayment plans (IBR or ICR). Borrowers must be employed in a public service job at the time of the forgiveness.

Jobs with federal, state, local, or tribal government organizations, public child or family service agencies, 501(c)(3) nonprofit organizations or universities should be considered “public service jobs.”

Borrowers who are working for organizations that provide any of the following services should qualify: Law Enforcement, Public Interest, Military service, Public safety, childhood education, public health care occupations, and public education.

It is important to note that the loan forgiveness is based upon the employer’s eligibility, not the type of job. Anyone working full time for a qualifying employer, regardless of his or her job, may qualify. There is no requirement that borrowers must work in the same public service job for the entire ten year period.

Check the following website for more information:
http://studentaid.ed.gov/students/attachments/siteresources/LoanForgivenessv4.pdf
http://studentaid.ed.gov/students/attachments/siteresources/PSLF_QAs_final_02%2012%2010.pdf