Special Education Teacher Loan Forgiveness

Perkins Student Loans Cancellation

Nov 19, 2009 Jennifer Ciotta

Educators who teach in the field of special education can qualify for full cancellation of their Perkins student debt. Learn how to apply for this program.

Forgiveness can come in all forms, but for the government, it is rare. Yet, with Perkins loans, the government does make an exception for teachers in the field of special education.

According to Sallie Mae, top education lending provider in the United States, a Perkins loan is given to students with "exceptional" need. Therefore, unlike a Stafford loan with current interest percentages at 6.8 or higher, a Perkins loan has a fixed interest rate of 5 percent, and a longer grace period of nine months. It is preferable for those who fall into the low income category, as seen by the government.

Teacher Forgiveness with Student Debt Relief

It is possible for a special education teacher to have student debt canceled while establishing an extremely meaningful career. According to the government's website on federal student financial aid, here are the services that teachers must provide to qualify for the program:

speech and language pathology
speech and language audiology
physical therapy
occupational therapy
recreational therapy
psychological services
counseling services

The government cites that the special education teacher must acquire proof by the school that s/he is teaching disabled or learning disabled students. The school must be public or nonprofit. To receive the Perkins cancellation benefit, the teacher must submit proof in the form of a letter from the school, bearing the letterhead or appropriate seal, or submit the proper cancellation form.

Additional Qualifications for Perkins Loan Forgiveness

Here are the general qualifications the special education teacher must additionally meet before applying for the teacher cancellation benefit:

The loan must be taken out after 1992. Before July 23 of that year does not qualify.
The levels of education include elementary and secondary only.
The teacher must be licensed, registered and/or certified by the state s/he is working in. The appropriate certification has to be in the area of special education services.
The aforementioned services must be part of the curriculum for disabled students.

If the teacher meets all of these qualifications, they will be eligible to cancel 100 percent of her/his loans over a five-year period. The usual schedule of forgiveness goes as follows: 15 percent for the first and second years of teaching; 20 percent for the third and fourth years; and 30 percent for the fifth year. Thus, a total of five years equals no more debt!

Whether in special education public schools or nonprofit institutions, this career can be very enriching, and the benefit of canceling Perkins loans can set the teacher on a path to financial freedom. Therefore, a teacher should make sure s/he meets all the necessary qualifications and then apply through her/his school.

Another option for teaching is AmeriCorps VISTA where the borrower can teach in an entirely different capacity and receive an education award toward her/his loans.

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