Teacher Loan Forgiveness Questions (license, graduated, teachers, public school)

[Clevelander17]

I have some specific questions and I was wondering if anyone had any experience with this process and might be able to help:

1) I noticed that for Stafford Loan forgiveness, they require a teacher to work for five consecutive years in schools that fit the given description (usually schools that are low income in nature). I am bit concerned that with the way schools are laying off teachers these days, what happens if I am in year three or four of my commitment and then get laid off? Would that be held against me, even if I desired to work in a challenging environment and eventually found another job in a qualifying school? Would the five year clock start all over again?

2) I got my teaching license as a post-baccalaureate student, so my Perkins Loan is from my undergraduate years. Is it still eligible for forgiveness? I have to believe that it would be, as long as I meet the requirements for Perkins Loan forgiveness, specifically teaching in a qualifying type of schools for the given time period.

Thanks!

(Oh and if this would be a better fit for another message board, by all means let me know!)

[Octa]

While we're on the subject, does anyone have any experience dealing with the public service loan forgiveness program?

[zthatzmanz28]

I believe the Stafford pays 20% for each year? It did when I graduated in '95.

[Clevelander17]

Originally Posted by zthatzmanz28

I believe the Stafford pays 20% for each year? It did when I graduated in '95.

Oh, okay, now that would make more sense. That way people aren't being penalized for when districts are forced to make cuts.

Perkins does 15% for the first and second years, 20% for the third and fourth years, and 30% for the final year.

[Clevelander17]

Originally Posted by Octa

While we're on the subject, does anyone have any experience dealing with the public service loan forgiveness program?

No experience, but my understanding is that one needs 120 (not necessarily consecutive) months of payments while being employed in a public service job to have all loans wiped away.

[Eresh]

Originally Posted by Clevelander17

No experience, but my understanding is that one needs 120 (not necessarily consecutive) months of payments while being employed in a public service job to have all loans wiped away.

That's my understanding as well - and they have to be on time payments.

[Octa]

Oh okay. Thanks. I should have all my loans payed off before ten years, but apparently it applies to public school teachers as well so it's nice to have that for peace of mind.