Higher Education Reconciliation Act of 2005

Up to $17,500 available for some critical needs teachers

On February 8, 2006, a new law made permanent loan forgiveness of up to $17,500 for new special education, math, and science teachers. Other subject area teachers who began teaching after October 30, 2004, can receive up to $5,000. See the link at right for full info.

Please note this is a FEDERAL program.  It is not funded, sponsored, or controlled by Judson ISD.

The Basics of the Program

Teacher Loan Forgiveness Eligibility Rules Applicable to All Federal Family Education Loan (FFEL) and Federal Direct Loan Program Borrowers

The following rules apply to all applicants for Teacher Loan Forgiveness benefits:

• A teacher seeking student loan forgiveness must be a new borrower, which is defined as a borrower who did not have an outstanding balance on a FFEL or Direct Loan on October 1, 1998, or on the date the borrower obtained a FFEL or Direct Loan after October 1, 1998.
• Eligible loans include Federal Stafford Loans (subsidized and unsubsidized); Federal Direct Stafford/Ford Loans (Direct Subsidized Loans); Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans); and any portion of a Federal Consolidation Loan or Federal Direct Consolidation Loan that was used to pay off one of these eligible loans.
• The loan cannot be in a default status.
• A teacher must have taught for five consecutive complete academic years in an eligible, low-income school. A low-income school is an elementary or secondary school that ...
  • is in a school district that qualifies for funds under Title I of the Elementary and Secondary Education Act of 1965, as amended;
  • has been selected by the Secretary based on a determination that more than 30 percent of the school's total enrollment is made up of children from low-income families; and
  • is listed in the annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.