Federal Student Loan Consolidation For Teachers

The average teaching student graduates with overunder the Individuals with Disabilities Education Act
$18,000.00 in student loan debt. After interest is added(IDEA), or
you could be paying a total of almost $40,000.00, so it- a full-time teacher of math, science, foreign
is extremely important to make sure you are gettinglanguages, bilingual education, or other fields determined
the best deal possible with your loan consolidation. Youto have a shortage by the state educational agency.
will probably have both federal and private loans butThe Perkins forgiveness loan is forgiven based on the
for this article we will be dealing with only your federalfollowing scheduled:
loans.For full-time teacher
Grace period -- 15% for each of years one and two
One of the benefits to a federal student loan is you- 20% for each of years three and four
don't have to start making payments until 6 months- 30% for year five and each successive year
after graduation. Perkins loans have a 9 month graceFor full-time special education teacher
period. You do still gather interest during this time on- 15% for each year of service
your unsubsidized loans so you may want to goPerkins loans are not eligible for forgiveness if they
ahead and start making payments anyway.have been consolidated.
Forgiveness -In addition you may be eligible for forgiveness by state.
There are a couple programs that offer student loanCheck for the availability in your state here.
forgiveness for teachers. With the Stafford LoanConsolidation -
Forgiveness program you could be eligible for up toOnce you have decided if you will be eligible for
$5000.00 in forgiveness and up to $17,500.00 if youforgiveness or not it's time to start making those
meet certain requirements such as teaching math,payments. A federal student loan consolidation can
science or special ed to low income students. Eligibilityhelp you do that more affordably by extending your
doesn't start until you have taught for 5 years, andrepayment term and lowering your payment and
there are other requirements such as -interest rate. Compare the terms of several
- You must not have had active student loans on Octconsolidation companies and choose the one who will
1, 1998.save you the most money and has the best customer
- Your must be employed for 5 consecutive completeservice. It can be hard to compare different types of
years and your school must have been designated arepayment incentives programs so ask for the bottom
low income school at least the first year you taughtline - how much will you be paying in total interest. The
there.company should have actual people available to
- You are not in default on the loans you are seekinganswer your questions and they should be courteous
forgiveness for.and knowledgeable. You have many choices in lenders
Consolidation will not affect the right to forgiveness forpick one that will deliver for you.
Stafford loans.You must give up what is left of your grace period
The Perkins forgiveness program will forgive up towhen you consolidate so if you aren't ready to start
100%of your loan if you are:making the payments time it so your consolidation is
- a full-time teacher employed in public or nonprofitfunded right at the end. Generally a consolidation takes
elementary or secondary schools in districts eligible for4-6 weeks so you should have your company picked
ESEA Title I-A funding, where the percentage ofout and an application underway by about 4 months
children from low-income families enrolled in the schoolafter graduation..
exceeds 30% of total enrollment, orRepaying your student loans can be a daunting task
- a full-time special education teacher in public orbut with a little forgiveness and the help of a good
nonprofit elementary or secondary schools (includingstudent loan advisor we can take some of the sting
teachers of infants and toddlers) or qualifiesout of it.
professional providers of early intervention services