Federal loan consolidation for teachers

The average teaching student graduates with overservices under the Individuals with Disabilities Education
$18,000.00 in student loan debt. After interest is addedAct (IDEA), ora full-time teacher of math, science,
you could be paying a total of almost $40,000.00, so itforeign languages, bilingual education, or other fields
is extremely important to make sure you are gettingdetermined to have a shortage by the state
the best deal possible with your loan consolidation. Youeducational 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 period15% for each of years one and two
One of the benefits to a federal student loan is you20% for each of years three and four
dont have to start making payments until 6 months30% 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 on15% 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.
ForgivenessIn 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 its 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
doesnt start until you have taught for 5 years, andrepayment term and lowering your payment and
there are other requirements such asinterest rate. Compare the terms of several
You must not have had active student loans on Oct 1,consolidation companies and choose the one who will
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 arent ready to start
100%of your loan if you are:a full-time teachermaking the payments time it so your consolidation is
employed in public or nonprofit elementary orfunded right at the end. Generally a consolidation takes
secondary schools in districts eligible for ESEA Title I-A4-6 weeks so you should have your company picked
funding, where the percentage of children fromout and an application underway by about 4 months
low-income families enrolled in the school exceedsafter graduation..
30% of total enrollment, ora full-time special educationRepaying your student loans can be a daunting task
teacher in public or nonprofit elementary or secondarybut with a little forgiveness and the help of a good
schools (including teachers of infants and toddlers) orstudent loan advisor we can take some of the sting
qualifies professional providers of early interventionout of it.