Loan Deferment/Forgiveness Programs for Educators

Each year, the U.S. Department of Education announces the low-income and teacher shortage areas approved as eligible for loan deferment/cancellation for the current school year. This could be important to teachers who have Perkins, Stafford or Federal Supplemental Loans or who are qualified under the Paul Douglas program.

Low-income schools eligible for Perkins and Stafford Loan Cancellation are posted at the U.S. Department of Education's Low Income School Search site.

The federal designation of teacher shortage areas in Wisconsin under:

• 34CFR 682.210(q) enables borrowers who had no outstanding Federal Family Education Loan (FFEL) Program loans on July 1, 1987 but who had an outstanding FFEL Program loan on July 1, 1993 to qualify for deferment of loan repayment under the Federal Stafford and Federal Supplemental Loans for Students (SLS) Programs anytime within the life of the borrower's loan(s);
• 34CFR 674.53(c) enables Federal Perkins Loan borrowers who are full time teachers of mathematics, science, foreign languages, bilingual education or any other field of expertise where the state educational agency determined there is a shortage of qualified teachers to qualify for cancellation of up to 100% of their loan; and
• 34 CFR 653.50(a)(2)(ii) enables scholars to qualify for the reduction of teaching obligation under the Paul Douglas Teacher Scholarship Program.

A nationwide listing of teacher shortage areas is posted at the: U.S. Department of Education's Office of Postsecondary Education.

Designated Wisconsin teacher shortage areas for the 2007-08 school year are listed below:

• Standard Areas: English as a Second Language (ESL)/Bilingual, Sciences, Library Media, Mathematics, Music, Reading, Foreign Languages
• Special Education: Cognitive Disabilities, Cross Categorical, Deaf and Hard of Hearing, Early Childhood-Special Education, Emotional/Behavioral Disorders, Learning Disabilities, School Speech and Language Disabilities, Visual Disabilities
• Career and Technology Education: Business Education, Family and Consumer Education (FACE), Technology Education

For more information see FAQs - Loan Deferral/Cancellation and the Department of Education's Cancellation/Deferment Options for Teachers Website for information on the Perkins, Stafford, and Douglas Programs. Federal Stafford/SLS borrowers who have questions concerning their loans, including the teacher shortage area deferment, may call the Federal Student Aid Hotline at 1-800-4FED-AID.

Teachers who borrowed through the Wisconsin Higher Educational Aids Board or the Great Lakes Higher Education Corporation should complete the loan deferral form available from those two sources and have the form signed by the employing administrator. Then contact Kathi Nash, Teacher Education, Professional Development and Licensing (608-266-1879) to request a letter verifying your current licensure either in a shortage area or in any area if you are employed in a low-income school building.

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

Last updated on 3/26/2008 1:11:13 PM