Has anyone completed the five years for teacher loan forgiveness?

Discussion in 'Teacher Time Out' started by pete2770, May 28, 2013.

  1. pete2770

    pete2770 Comrade

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    May 28, 2013

    I'm curious if anyone has done the five years here, and how it worked out.

    The school I'm going to be working in this coming fall is title 1/eligible for teacher loan forgiveness.

    I know it's capped at $17,500 - so in an ideal world one would try to use IBR and try to get the principal balance right around that point for the five year mark.

    A couple of questions, if anyone knows the answers...

    Is this based on number of qualified payments like the 10 year public service forgiveness (e.g. make 120 payments to be eligible - teacher forgiveness 60 payments) or is it only based on teaching for five years and keeping your loans in good standing? (If it's not based on payments, I think it would be wise for me to keep the loan in deferment via taking college courses as I'll need the education for PD anyways.)

    Also, we live in an economy that's not very certain - and I will be working in a rural school with a slowly declining population. The five years has to be consecutive, right (does the 10 year?), would it still be possible to obtain the forgiveness if you switched schools but went to another title 1/Native American run school?

    I hate the idea of not having the job for five years and paying all that extra interest for nothing.

    I'm really debating between putting 60% of my net income towards loan repayment or going on IBR and hoping to get the majority cancelled after 5 years.

    I like the certainty of the tried and true method, and I can afford to live on 40% of my income as I'm single without kids.

    The advantage for me going the other route, if it worked out, is 5 years of capped IRA and almost capped 403(b) and a paid off loan; the plan would be to use my IRA/403(b) to keep my AGI low enough to qualify for a minimum payment that would put my principal at 17.5k at the end of five years. (For the investment savvy here, this is a triple win as I also don't plan on retiring in this state, so not only am I lowering my tax burden, but also saving my state's income tax, eventually, on all contributions).

    Any advice is appreciated.
     
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  3. MissCeliaB

    MissCeliaB Aficionado

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    My husband just did his. The first time they declined it because he filled out a form wrong. He filled out one line that wasn't supposed to be, and they made him start over. His were in deferment most of the time, and they still forgave them.
     
  4. Caesar753

    Caesar753 Multitudinous

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    I filled it out but I didn't get anywhere near $17,500. Mine topped out at $5,000.
     
  5. BumbleB

    BumbleB Habitué

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    The $17,500 is the MAX for some high needs positions, such as math and special education.

    I thought that I read somewhere that the years don't have to be consecutive, and don't have to be all at the same school. As long as it's five complete school years at a low income school.

    I plan on doing the loan forgiveness...only three more years!
     
  6. teacherwithlove

    teacherwithlove Comrade

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    I haven't heard about this! I've been working in a low income school (making a low income as well) for 2 years. I teach in CA. Would I qualify for this loan forgiveness in 3 years? I owe 16k in loans and am an APLE Participant but... that program is no help whatsoever. APLE is a pain in my BEHIND.

    :/
     
  7. pete2770

    pete2770 Comrade

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    Thanks for the information guys, I think I am going to risk going forward with hoping for the forgiveness at the risk of having some extra interest.

    @teacherwithlove: The only eligible loans are direct subsidized and unsubsidized federal loans made after 2004 (I believe - for the 17.5k), but not Plus loans.

    You'll have to check on how it interacts with state forgiveness programs as the Feds always love to put stipulations in to keep anyone out they can.
     
  8. comaba

    comaba Cohort

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    When I did mine, it wasn't necessary that the school be Title I for all five years, just the first one that you use to qualify. (I think... it's been a while.)

    Also, there's something about taking out subsequent loans before paying off the first that will disqualify you. I can't remember exactly what it is, but don't start grad school with a new loan until after you've gotten your loan forgiveness (or checked out this iffy information!)
     
  9. mrachelle87

    mrachelle87 Fanatic

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    My loan was forgiven in three years. I paid on it for six months and my supt did the paperwork for me. While I was working there my payments were deferred. I was able to pay everything off in three.
     
  10. comaba

    comaba Cohort

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  11. yellowdaisies

    yellowdaisies Fanatic

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    Yes, but from what I know you can't apply until you have completed the 5 years of work in a low income school.

    Also, why is APLE a pain? I regrettably missed the deadline to apply for APLE during my credential program so I'm not getting it. :(

    To the OP - are you sure you're getting $17,500? I know that is the max but it's for very specific things, as BumbleB stated.
     
  12. pete2770

    pete2770 Comrade

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    Pretty sure. Special Ed in a rural, title 1 eligible school with all of my loans made after 2004. Of course, who knows!
     
  13. FourSquare

    FourSquare Fanatic

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    :mad: Is this a thing?! Maybe I shouldn't be going back to grad school after all. :whistle:
     
  14. Emily Bronte

    Emily Bronte Groupie

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    I didn't qualify which is total bs because I had a stafford loan balance on a certain date ( from my undergrad) two other teachers at my school were in the same position; gen Ed teachers who moved to SPED. And couldn't get anything from loans for sped licensure forgiven...bs
     
  15. Leila921

    Leila921 New Member

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    Hi, I know this thread is old but I am doing research with my teacher loan forgiveness. Did you apply for the perkins forgiveness or the teacher loan forgiveness?
     
  16. mrachelle87

    mrachelle87 Fanatic

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    To be honest, I really don't remember. I just remember that I had to teach in a low income school or Title I school....each year for three years, they deferred payments. After three years, it was forgiven.
     
  17. Leila921

    Leila921 New Member

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    Thank you for your help. I hope I qualify, wish me luck! :)
     
  18. Leila921

    Leila921 New Member

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    Thank you! Congrats! It helps with all of the loans...education is expensive! :)
     
  19. MsAbeja

    MsAbeja Companion

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    When I graduated with my BA I consolidated all of my loans, not realizing that I shouldn't have included my Perkins. I think that I assumed I'd never become a teacher. Well, now I'm teaching in a Title I school, and I kick myself every day for consolidating that loan!
     
  20. Backroads

    Backroads Aficionado

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    I totally forgot about it. Technically I was elligible, but... my student loans were all of 3,000$ Those were paid off long ago.
     

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