34 CFR 682.215 and 685.217
Dear
Colleague:
On
October 30, 2004, President Bush signed the "Taxpayer-Teacher Protection
Act of 2004"(P. L. 108-409). This
Act authorizes up to $17,500 in loan forgiveness for new Federal Stafford Loan
borrowers under the Federal Family Education Loan (FFEL) Program and Federal
Direct Loan Program who meet certain criteria. This Dear Colleague Letter discusses
the teacher loan forgiveness provisions of P. L. 108-409.
The new law also modifies the special allowance rates for certain FFEL loans
made or purchased with tax-exempt funds. Information concerning the special
allowance changes will be provided in a separate letter to the holders of loans
made with tax-exempt funds that are affected by these changes.
P.
L. 108-409 changed the requirements for teacher loan forgiveness applicable
to the previously authorized level of $5,000 and established provisions under
which new Stafford Loan borrowers may qualify for teacher loan forgiveness of
up to $17,500 under sections 428J and 460(c) of the Higher Education Act of
1965 (HEA). The increased amount of
teacher loan forgiveness is only available to an individual who had no outstanding
balance of principal or interest owing on any loan made, insured or guaranteed
under Title IV of the HEA prior to October 1, 1998 and has borrowed eligible
loans prior to October 1, 2005.
For
a Stafford loan borrower to qualify for loan forgiveness of up to $17,500, the
borrower must be employed full-time for five consecutive years as a highly qualified
secondary school teacher of science or math or a highly qualified elementary
or secondary school special education teacher.
The definition of "highly qualified teacher" is contained in section
9101 of the Elementary and Secondary Education Act of 1965 and is provided as
an enclosure to this letter.
A
special education teacher in an elementary school or secondary school for purposes
of loan forgiveness is a special education teacher whose primary responsibility
is to provide special education to children with disabilities, as those terms
are defined in section 602 of the Individuals with Disabilities Education Act.
The chief administrative officer of the public or non-profit private elementary
school or secondary school in which the borrower is employed must certify that
the borrower is teaching children with disabilities that correspond with the
borrower's special education training, and has demonstrated knowledge and teaching
skills in the content areas of the elementary school or secondary school curriculum
that the borrower is teaching.
As
under prior law, the borrower must teach 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. (See website address at http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelperk.jsp?tab=repaying)
An
otherwise eligible borrower who has already received loan forgiveness under
the prior requirements is eligible to receive further loan forgiveness, up to
the difference between $17,500 and the amount previously forgiven, once the
borrower has completed the required five years of teaching service as a highly
qualified special education teacher or as a highly qualified secondary school
math or science teacher.
For
a new Stafford loan borrower to qualify for loan forgiveness of up to the previously
authorized level of $5,000 after the date of enactment of P. L. 108-409,
the borrower must now be a highly qualified teacher, as defined in section 9101
of the Elementary and Secondary Education Act of 1965, and employed full-time
for five years in an elementary or secondary school that meets the above standards
for inclusion in the annual Directory of Designated Low-Income Schools.
Please note that a borrower who commenced teaching service under the requirements
that existed under prior law, and who continues to meet those requirements,
will remain eligible for up to $5,000 in loan forgiveness without meeting the
highly qualified teacher standard.
Except
for those specific statutory provisions that have changed, as discussed in this
letter, the regulations implementing the FFEL (34 CFR 682.215) and Direct Loan
(34 CFR 685.217) teacher loan forgiveness programs remain applicable. A revised
“Teacher Loan Forgiveness” application form is currently being developed
and will be made available shortly.
If you have any questions on the matters discussed
in this letter please contact our Customer Service Call Center at 1-800-433-7327.
After hours calls will be accepted by an automated voice response system. Callers
leaving their name and phone number will receive a return call the next business
day.
Sincerely,
Sally L. Stroup
Assistant Secretary for
Postsecondary Education
Enclosure
Definition
of a Highly Qualified Teacher
(23)
HIGHLY QUALIFIED.—The term ‘‘highly qualified’’—
(A)
when used with respect to any public elementary school or secondary school teacher
teaching in a State, means that—
(i)
the teacher has obtained full State certification as a teacher (including certification
obtained through alternative routes to certification) or passed the State teacher
licensing examination, and holds a license to teach in such State, except that
when used with respect to any teacher teaching in a public charter school, the
term means that the teacher meets the requirements set forth in the State’s
public charter school law; and
(ii)
the teacher has not had certification or licensure requirements waived on an
emergency, temporary, or provisional basis;
(B)
when used with respect to—
(i)
an elementary school teacher who is new to the profession, means that the teacher—
(I)
holds at least a bachelor’s degree; and
(II)
has demonstrated, by passing a rigorous State test, subject knowledge and teaching
skills in reading, writing, mathematics, and other areas of the basic elementary
school curriculum (which may consist of passing a State-required certification
or licensing test or tests in reading, writing, mathematics, and other areas
of the basic elementary school curriculum); or
(ii)
a middle or secondary school teacher who is new to the profession, means that
the teacher holds at least a bachelor’s degree and has demonstrated a high
level of competency in each of the academic subjects in which the teacher teaches
by—
(I)
passing a rigorous State academic subject test in each of the academic subjects
in which the teacher teaches (which may consist of a passing level of performance
on a State-required certification or licensing test or tests in each of the
academic subjects in which the teacher teaches); or
(II)
successful completion, in each of the academic subjects in which the teacher
teaches, of an academic major, a graduate degree, coursework equivalent to an
undergraduate academic major, or advanced certification or credentialing; and
(C)
when used with respect to an elementary, middle, or secondary school teacher
who is not new to the profession, means that the teacher holds at least a bachelor’s
degree and—
(i)
has met the applicable standard in clause (i) or
(ii)
of subparagraph (B), which includes an option for a test; or
(ii)
demonstrates competence in all the academic subjects in which the teacher teaches
based on a high objective uniform State standard of evaluation that—
(I)
is set by the State for both grade appropriate academic subject matter knowledge
and teaching skills;
(II)
is aligned with challenging State academic content and student academic achievement
standards and developed in consultation with core content specialists, teachers,
principals, and school administrators;
(III)
provides objective, coherent information about the teacher’s attainment of
core content knowledge in the academic subjects in which a teacher teaches;
(IV)
is applied uniformly to all teachers in the same academic subject and the same
grade level throughout the State;
(V)
takes into consideration, but not be based primarily on, the time the teacher
has been teaching in the academic subject;
(VI)
is made available to the public upon request; and
(VII)
may involve multiple, objective measures of teacher competency.