[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR685.217]



[Page 846-848]

 

                           TITLE 34--EDUCATION

 

 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

PART 685_WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM--Table of Contents

 

                      Subpart B_Borrower Provisions

 

Sec. 685.217  Teacher loan forgiveness program.



    (a) General. The teacher loan forgiveness program is intended to 

encourage individuals to enter and continue in the teaching profession. 

For new borrowers, the Secretary will repay up to a combined total of 

$5,000 of subsidized and unsubsidized Federal Stafford Loans, Direct 

Subsidized Loans, Direct Unsubsidized Loans, and, in certain



[[Page 847]]



cases, Federal Consolidation Loans or Direct Consolidation Loans. The 

forgiveness program is only available to a borrower who has no 

outstanding loan balance under the FFEL Program or the Direct Loan 

Program on October 1, 1998 or who has no outstanding loan balance on the 

date he or she obtains a loan after October l, 1998. In addition, the 

borrower must have been employed as a full-time teacher for five 

consecutive complete academic years, at least one of which was after the 

1997-1998 academic year, in certain eligible elementary or secondary 

schools that serve low-income families. The loan for which the borrower 

is seeking forgiveness must have been made prior to the end of the fifth 

year of qualifying teaching service.

    (b) Definitions. The following definitions apply to this section:

    Academic year means one complete school year at the same school, or 

two complete and consecutive half years at different schools, or two 

complete and consecutive half years from different school years at 

either the same school or different schools. Half years exclude summer 

sessions and generally fall within a twelve-month period. For schools 

that have a year-round program of instruction, a minimum of nine months 

is considered an academic year.

    Elementary school means a public or nonprofit private school that 

provides elementary education as determined by State law or the 

Secretary if that school is not in a State.

    Full-time means the standard used by a State in defining full-time 

employment as a teacher. For a borrower teaching in more than one 

school, the determination of full-time is based on the combination of 

all qualifying employment.

    Secondary school means a public or nonprofit private school that 

provides secondary education as determined by State law or the Secretary 

if the school is not in a State.

    Teacher means a person who provides direct classroom teaching or 

classroom-type teaching in a non-classroom setting, including Special 

Education teachers.

    (c) Borrower eligibility. (1) A borrower may obtain loan forgiveness 

under this program if he or she has been employed as a full-time teacher 

for five consecutive complete academic years, at least one of which was 

after the 1997-1998 academic year, in an elementary or secondary school 

that--

    (i) Is in a school district that qualifies for funds under title I 

of the Elementary and Secondary Education Act of 1965, as amended;

    (ii) Has been selected by the Secretary 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

    (iii) 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.

    (2) If the school at which the borrower is employed meets the 

requirements specified in paragraph (c)(1) of this section for at least 

one year of the borrower's five consecutive complete academic years of 

teaching and the school failed to meet those requirements in subsequent 

years, those subsequent years of teaching qualify for purposes of this 

section for that borrower.

    (3) A borrower who is employed as an elementary school teacher must 

demonstrate knowledge and teaching skills in reading, writing, 

mathematics, and other areas of the elementary school curriculum, as 

certified by the chief administrative officer of the school in which the 

borrower was employed.

    (4) A borrower who is employed as a secondary school teacher must 

teach in a subject area that is relevant to the borrower's academic 

major as certified by the chief administrative officer of the school in 

which the borrower was employed.

    (5) The academic year may be counted as one of the borrower's five 

consecutive complete academic years if the borrower completes at least 

one-half of the academic year and the borrower's employer considers the 

borrower to have fulfilled his or her contract requirements for the 

academic year for the purposes of salary increases, tenure, and 

retirement if the



[[Page 848]]



borrower is unable to complete an academic year due to--

    (i) A return to postsecondary education, on at least a half-time 

basis, that is directly related to the performance of the service 

described in this section;

    (ii) A condition that is covered under the Family and Medical Leave 

Act of 1993 (FMLA) (19 U.S.C. 2654); or

    (iii) A call or order to active duty status for more than 30 days as 

a member of a reserve component of the Armed Forces named in section 

10101 of title 10, United States Code.

    (6) If a borrower meets the requirements of paragraph (c)(5) of this 

section, the borrower's period of postsecondary education, active duty, 

or qualifying FMLA condition including the time necessary for the 

borrower to resume qualifying teaching no later than the beginning of 

the next regularly scheduled academic year, does not constitute a break 

in the required five consecutive years of qualifying teaching service.

    (7) A borrower who teaches in more than one qualifying school during 

an academic year and demonstrates that the combined teaching was the 

equivalent of full-time, as supported by the certification of one or 

more of the chief administrative officers of the schools involved, is 

considered to have completed one academic year of qualifying teaching.

    (8) A borrower is not eligible for teacher loan forgiveness on a 

defaulted loan unless the borrower has made satisfactory repayment 

arrangements to re-establish title IV eligibility, as defined in Sec. 

685.200(b).

    (9) A borrower may not receive loan forgiveness for qualifying 

teaching service under this section if the borrower receives a benefit 

for the same teaching service under subtitle D of title I of the 

National and Community Service Act of 1990.

    (d) Forgiveness amount. (1) A qualified borrower is eligible for 

forgiveness of up to $5,000 of the aggregate amount of a borrower's 

Direct Subsidized Loan, Direct Unsubsidized Loan, or Direct 

Consolidation Loan obligation that is outstanding after the borrower 

completes his or her fifth consecutive complete academic year of 

teaching as described in paragraph (c) of this section. Only the 

outstanding portion of a Direct Consolidation Loan that was used to 

repay an eligible subsidized or unsubsidized Federal Stafford loan, an 

eligible Direct Subsidized Loan, or an eligible Direct Unsubsidized Loan 

qualifies for loan forgiveness under this section.

    (2) A borrower may not receive more than a total of $5,000 in loan 

forgiveness for outstanding principal and accrued interest under both 

this section and 34 CFR Sec. 682.215.

    (3) The Secretary does not refund payments that were received from 

or on behalf of a borrower who qualifies for loan forgiveness under this 

section.

    (e) Application. (1) A borrower, after completing the qualifying 

teacher service, must request loan forgiveness from the Secretary on a 

form provided by the Secretary.

    (2) If the Secretary determines that the borrower meets the 

eligibility requirements for loan forgiveness under this section, the 

Secretary--

    (i) Notifies the borrower of this determination; and

    (ii) Unless otherwise instructed by the borrower, applies the 

proceeds of the loan forgiveness first to any outstanding Direct 

Unsubsidized Loan balances, next to any outstanding Direct Subsidized 

Loan balances, next to any qualifying Direct Unsubsidized Consolidation 

Loan balances, and last to any qualifying outstanding Direct Subsidized 

Consolidation Loan balances.

    (3) If the Secretary determines that the borrower does not meet the 

eligibility requirements for loan forgiveness under this section, the 

Secretary notifies the borrower of this determination.



(Approved by the Office of Management and Budget under control number 

1845-0021)



(Authority: 20 U.S.C. 1087a et seq.)



[65 FR 65629, Nov. 1, 2000]