This document summarizes several student loan repayment plans and forgiveness programs:
The Standard Repayment Plan has fixed monthly payments over 10 years, allowing borrowers to pay off loans the fastest and pay the least interest overall. The Graduated Repayment Plan starts with lower monthly payments that increase every two years over 25 years, ideal for those with increasing incomes. The Income-Based Repayment Plan sets monthly payments as a percentage of discretionary income and offers potential debt forgiveness after 25 years of repayment. The Public Service Forgiveness Program forgives the remaining balance after 120 payments under an income-driven plan while working full-time for a qualifying public service employer. The Teacher Loan Forgiveness Program forgives a portion of debt
2. • A government organization (including a federal, state, local, or tribal organization, agency, or
entity; a public child or family service agency; or a tribal college or university);
• A non‐profit, tax‐exempt organization under section 501(c)(3) of the Internal Revenue Code
(includes most not‐for profit private schools, colleges, and universities);
• A private, non‐profit organization (that is not a labor union or a partisan political organization)
that provides one or more of the following public services: Emergency management
• Military service
• Public safety
• Law enforcement
• Public interest law services
• Early childhood education (including licensed or regulated health care, Head Start, and state‐
funded pre‐ kindergarten)
• Public service for individuals with disabilities and the elderly
• Public health (including nurses, nurse practitioners, nurses in a clinical setting, and full‐time
professionals engaged in health care practitioner occupations and health care support
occupations)
• Public education
• Public library services
• School library or other school‐based service
TEACHER LOAN Forgiveness Program:
To qualify for this program, client must have been employed as a full‐time teacher for five complete and
consecutive academic years, and at least one of those years must have been after the 1997–98
academic year.
Client must have been employed in 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 U.S. Department of Education based on a determination that more
than 30 percent of the school’s total enrollment is made up of children who qualify for services
provided under Title I; and
• is listed in the Annual Directory of Designated Low‐Income Schools for Teacher Cancellation
Benefits. If this directory is not available before May 1 of any year, the previous year’s directory
may be used.
If client meets these qualifications (additional prerequisites may be required, final determination of
eligibility for this program will be made by the SDE processing department during the welcome call
with the client); a portion of their outstanding student loan debt may be forgiven.