ED approves new teacher loan forgiveness forms
Last week, ED released Dear Colleague Letter (DCL) GEN-05-02, announcing the availability of the revised Teacher Loan Forgiveness Application and Teacher Loan Forgiveness Forbearance Form. The previous versions of the forms expired October 31, 2004; however, ED has allowed FFELP participants to use the expired forms until the revised forms became available.
Changes to the forms
Because of certain provisions of the Taxpayer-Teacher Protection Act (Act) signed by President Bush on October 30, 2004 (see Shoptalk Online, Edition 279), significant changes have been made to the teacher loan forgiveness forms. The revised forms include new eligibility criteria brought about by the Act that, if met, may increase benefits (up to $17,500) for a borrower who:
- Served full time for five complete, consecutive years at an eligible Title I secondary school teaching mathematics, science, or special education, or at an eligible Title I elementary school teaching special education.
- Received his or her first student loan between October 1, 1998, and October 1, 2005.
- Meets the definition of a "highly qualified" teacher as defined in the No Child Left Behind Act of 2001.
FFELP participants may begin distributing the revised forms for immediate use. Beginning July 1, 2005, only the revised forms may be provided to borrowers. However, in some instances, the previous version of the forms may continue to be processed after that date. For example, a borrower who submits the previous application after July 1 and is eligible for the increased loan amount will either need to provide the required certifications to supplement the previous version of the application, or complete the new version of the application.
TG has posted the revised Teacher Loan Forgiveness Application and Teacher Loan Forgiveness Forbearance Form on TG Online at www.tgslc.org/forms/frms_disforg.cfm.
If a borrower believes that he or she may qualify for either the standard or the increased forgiveness amount, the borrower should call TG customer assistance at (800) 845-6267 for additional information and instructions. To access DCL GEN-05-02, visit the Information for Financial Aid Professionals (IFAP) website at www.ifap.ed.gov/dpcletters/GEN0502.html. Watch for a series of questions and answers to aid with implementing the new teacher loan forgiveness forms in next week's edition of Shoptalk Online.
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ED releases updated unpaid refund discharge application
ED recently published Dear Colleague Letter (DCL) GEN-05-03/FP-05-03 announcing the approval of the Loan Discharge Application: Unpaid Refund for use in the FFELP and the Federal Direct Loan Program.
The Loan Discharge Application: Unpaid Refund is used to evaluate discharge eligibility for borrowers who did not receive refunds to which they were entitled from their schools.
Program participants may begin distributing the revised form immediately. Beginning July 1, 2005, only the revised form may be provided to borrowers. However, the previous version of the form may continue to be processed after that date.
More information and questions
The Loan Discharge Application: Unpaid Refund is available for download on TG Online at www.tgslc.org/forms/frms_disforg.cfm. To access GEN-05-03/FP-05-03, go to the Information for Financial Aid Professionals (IFAP) website at www.ifap.ed.gov/dpcletters/GEN0503.html.
For questions regarding the unpaid refund discharge application, call Rose Ortiz-Juarez in TG's compliance administrative operations at (800) 252-9743, ext. 4775, or send an message to email@example.com.
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