Frequently Asked Questions - Loan Deferment Programs

Loan Deferment/Cancellation Programs for Teachers

I will be graduating with a teaching degree soon. What information is available on loan deferment or loan cancellation?

There are two loan forgiveness programs available in Wisconsin. Eligibility depends on what type of financial aid you received as a student.

For Paul Douglas or Stafford funds, you must be teaching in a "teacher shortage area" identified by the federal government.
For Carl Perkins loans, you must be teaching in a school building identified as "low income" by the federal government. This program uses employment seniority as part of the formula for loan cancellation.

How do I actually apply for the loan deferment option?

Step 1 is to contact your loan agency and request that they send you an "Education Related Deferment Request Form." You need to fill out the form and then have your employing administrator sign Section 4 - Authorized Official's Certification to verify your employment. Step 2 is to call the DPI Teacher Licensing office and request a verification letter stating that you 1) hold a license in a subject shortage area for the current school year OR 2) hold a license in any category and are teaching in a low-income school building for the present school term.

How soon may I request the deferment verification letter for the next school year?

The U.S. Office of Education generally approves and provides the teacher subject shortage categories and the list of low-income school buildings toward the end of fall (end of first semester) for that particular school year (e.g. in December 2008 for the 2008-09 school year).

I applied for my teaching license but have not yet received it. May I apply for the loan deferment now?

No, you must wait until you actually receive your teaching license. Then you may call the Licensing Office and request the loan deferment verification letter.

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For questions about this information, contact Kathi K. Nash (608) 266-1879

Last updated on 8/26/2008 1:50:20 PM