Iowa Teacher Loan Forgiveness

/Home/Student Loan Information by State/Iowa Student Loans

Iowa Teacher Loan Forgiveness
The State of Iowa offers cancellation benefits to teachers. The maximum annual award is 20% of the teacher’s total federal Stafford loan balance, including principal and interest, not to exceed the average resident tuition rate established for students attending universities governed by the Iowa Board of Regents for the first year following the recipient’s graduation. For 2008 graduates, the maximum award is $6,420. [Program Fact Sheet] [Application]

To Qualify:
You may be eligible for federal Stafford or Consolidation Loan forgiveness if you meet all of the following Iowa Teacher Loan Forgiveness criteria:
You are a fully licensed teacher and begin your first classroom teaching job in Iowa no earlier than July 1, 2007.1
You are employed full-time for one full year in a teacher shortage area as designated by the Iowa Department of Education.
You keep your loan account(s) in good standing. If you need assistance, contact your loan holder to discuss deferment and forbearance options available to postpone payments.
1“Teacher” means an individual holding a practitioner’s license issued by the Iowa Board of Educational Examiners who is employed in a non-administrative position in a designated shortage area by a school district or area education agency.

You may receive forgiveness for no more than five consecutive years. Applicants who previously received funding under the Iowa Teacher Shortage Forgivable Loan Program will be eligible for a combined total of 5 years of eligibility between the 2 programs. If you fail to complete five consecutive years of teaching in the designated shortage areas in Iowa, you will not be considered for subsequent years. [See the Iowa Teacher Shortage Areas] For this program, only instructional positions qualify (K-12 Counselor and K-12 Principal are NOT considered instructional positions).

To Apply:
You must annually complete an online Iowa Teacher Loan Forgiveness Application and submit it to the Iowa College Student Aid Commission. Applications will be accepted online in July, August, and September of the current academic year.
You may complete and submit an online application.
The administrator of the school where you performed your qualified teaching service must certify your employment.
If your loan balance is less than the maximum forgiveness amount, only your outstanding principal and interest amount will be forgiven.
Federal Teacher Loan Forgiveness

To Qualify (up to $5,000):
You may be eligible for federal Stafford or Consolidation Loan forgiveness of up to $5,000 if you meet all of the following Federal Teacher Loan Forgiveness criteria:
You were a “new borrower” on or after October 1, 1998, who did not have an outstanding balance on a loan through the Federal Family Education Loan Program (FFELP) or Direct Loan Program as of that date.
You teach full-time at a qualified school for five consecutive, complete academic years. At least one of the years of teaching must be after the 1997-1998 academic year.
You complete your teaching service at a designated low income elementary or secondary school.
If you teach in an elementary school, the principal of the school must certify that you demonstrate knowledge in your teaching area.
If you teach in a secondary school, the principal of the school certifies that you teach in a subject area that is relevant to your academic major.
If your teaching service begins on or after October 30, 2004, you meet the definition of a “highly qualified” teacher.2
You received the loan that is to be forgiven prior to completing your final year of qualified teaching service.
You have not received a benefit for the same teaching service through the AmeriCorps Program.
If you have defaulted on student loans, you have made satisfactory repayment arrangements with your loan holder.
To Qualify (up to ($17,500):
To qualify for up to $17,500 in loan forgiveness, you must meet the following additional Federal Teacher Loan Forgiveness criteria:
You are employed full-time as a mathematics or science teacher in an eligible secondary school or a special education teacher whose primary responsibility is to provide special education to children with disabilities in an eligible elementary or secondary school.
You meet the definition of a “highly qualified” teacher.2
The chief administrative officer of the school must certify that you are “highly qualified” as defined by the state in which you teach.
2In Iowa, “highly qualified” means to hold an endorsement in the subject area that you teach. The standards may vary by state.

To Apply:
You must complete a U.S. Department of Education approved Teacher Loan Forgiveness Application and return it to your loan holder(s).
If your loan balance is less than the maximum forgiveness amount, only your outstanding principal and interest amount may be forgiven.
You may be eligible for a forbearance to postpone payments while you complete your teaching service. Check with your loan holder for more details.
Perkins Loan Cancellation
If you have a loan from the Federal Perkins Loan Program, you may be eligible for Perkins Loan Cancellation for full-time teaching at a low-income school or in certain subject areas.

Iowa Student Loan Teacher Education Loan Forgiveness Program
Students who are currently working toward education degrees or endorsement programs that lead to licensure in an approved subject shortage area at accredited Iowa colleges, universities, or other similar educational institutions may be eligible to receive loan forgiveness of up to $9,000. To be eligible, your qualifying student loans must be held by Iowa Student Loan. [Application Details]