Edufacts™

June 2007

Federal Program Offers Student Loan Relief To Teachers At Eligible Schools

For several years now, the federal government has been promoting a program that forgives some student loan debt to thousands of teachers who work at schools that serve low-income students.

Congress established the Teacher Loan Forgiveness (TLF) Program in 1998 as a way to boost the number of teachers in key subjects such as math and science, and to retain teachers in schools where more than 30 percent of the students come from low-income households, which are categorized as Title I schools by the U.S. Department of Education. For math, science, or special education teachers, the incentives can be more than three times that of other teachers.

Under the TLF program, a borrower of federal Stafford loans who teaches five consecutive and complete years at a qualifying school may be eligible for a total of $5,000 in loan forgiveness. Highly-qualified math, science and special education teachers are eligible for as much as $17,500 in loan forgiveness.

This amount of loan relief is substantial since the average loan debt for students upon college graduation is $19,237, according to the 2003-04 National Postsecondary Student Aid Study.

Since 2001, a total of $106 million in federal student loans has been forgiven nationally. In Texas, approximately $7.2 million of student loans guaranteed by TG has been forgiven for about 1,100 teachers, and the number is growing. Last year, more than $3 million in student loans were forgiven for Texas teachers. Many states are now establishing teacher loan forgiveness programs of their own.

"Having had the opportunity to speak with many teachers about loan forgiveness, it is apparent that the Teacher Loan Forgiveness Program has had a significant effect in encouraging teachers to choose or continue teaching in Title I schools," said Sam Wilson, TG's assistant vice president for customer assistance. "Many teachers see this program as making the difference in their decision to remain in the teaching profession, as opposed to leaving to work in a less personally rewarding but more lucrative job. In terms of social benefit, the TLF program has been hugely successful."

Rewarding teachers with loan forgiveness is helping attract and retain talented and dedicated professionals to a traditionally low-paying field. According to the National Education Association, beginning public school teachers earn on average $31,000 annually — the figure is less for new Texas teachers. The low pay for teachers makes it difficult to keep up with an average college loan indebtedness of $19,000, and a loan payment that can approach $400 a month.

The U.S. Department of Education has a list of qualifications for the TLF Program that can be found at www.ed.gov, or by calling the Federal Student Aid Information Center at (800) 433-3243. However, the two key qualifications are:

A teacher cannot have an outstanding balance on a Federal Family Education Loan Program (FFELP) or Federal Direct Loan Program (FDLP) loan as of October 1, 1998, or on the date a FFELP or FDLP loan was obtained after October 1, 1998.
A teacher must be employed full time for five consecutive, complete academic years at an eligible school. An eligible school is considered "low-income" according to certain criteria for funding under Title I of the Elementary and Secondary Education Act and is listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.

Interested teachers will find a TLF application online at www.ifap.ed.gov/dpcletters/attachments/GEN0502Attach2.pdf. Both the teacher and a school's chief administrative officer — superintendent, principal or assistant principal — must complete the form.

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For tips on how to establish high expectations for students as early as middle school and for assistance in planning for higher education academically and financially, visit www.AIE.org. TG provides this Web site has a public service to help all families and students achieve their educational goals and career dreams.

About TG
TG is a public, nonprofit corporation that administers the Federal Family Education Loan Program (FFELP). High resolution files suitable for publication are available as a free download from TG's Web site at http://www.tgslc.org/edufacts/index.cfm. For more information, please e-mail or call ray.perez@tgslc.org or (512) 219-4990.