Teacher Loan Forgiveness Program

More Resources

Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits
Are you teaching at a low-income school that may qualify you for Teacher Loan Forgiveness? Find out here!

Order of Loan Forgiveness

Unless you notify your loan holder to apply the funds differently, your loan holder must apply the proceeds of any loan forgiveness for which you qualify in the following order:

Unsubsidized Federal Stafford loan/Direct loan balances**
Subsidized Federal Stafford loan/Direct loan balances**
Federal Consolidation loan balances** — Only the outstanding portion of the Consolidation loan that was used to repay an eligible subsidized or unsubsidized Federal Stafford or Federal Direct loan qualifies for loan forgiveness.

If your student loans are held by more than one holder, it is to your advantage to apply for loan forgiveness first with the holder that holds the largest balance of unsubsidized loans. To determine which holder has the largest unsubsidized balance, please review a summary of your loans on the National Student Loan Data System (NSLDS) website.

** Balance is defined as principal and interest.