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Federal Loan Cancellation and Forgiveness Programs

The Federal Perkins Loan Teacher Cancellation program applies to teachers who have taught in an elementary or secondary school as a:

  • teacher in a school serving students from low-income families
  • special education teacher
  • teacher in the fields of mathematics, science, foreign languages, or bilingual education, or in other shortage areas in the state

If a borrower is eligible for teacher cancellation under any of the categories, up to 100 percent of the loan may be canceled for teaching service in the following increments: 

  • 15 percent for the first and second years of service
  • 20 percent canceled for the third and fourth years
  • 30 percent canceled for the fifth year

To qualify for the federal Teacher Loan Forgiveness program a teacher must have been employed as a full-time teacher for five consecutive, complete academic years in an elementary or secondary school designated as a low-income school by the U.S. Department of Education.

Teachers may receive up to either $5,000 or $17,500 of loan cancellation on direct subsidized and unsubsidized loans and subsidized and unsubsidized Federal Stafford Loans if they teach in a low-income school.

A fully qualified elementary or secondary teacher is eligible for up to $5,000 in loan forgiveness if they teach in a low-income school.

Teachers may receive up to $17,500 in loan forgiveness if they are fully qualified and are a teacher of mathematics or science in an eligible secondary school or a special education teacher.