Iowa Student Loan Teacher Education Loan Forgiveness Program
Frequently Asked Questions
Topics on this page:
Contact Us
If you need assistance or have additional questions, send an e-mail to mbrown@studentloan.org or call (800) 243-7552, ext. 7656 or (515) 273-7656.
Program Background and Details
Q. What is the goal of the Iowa Student Loan Teacher Education Loan Forgiveness Program?
A. The program was created to help increase the preparedness of students for college and the workforce by making teachers available to them in critical subject shortage areas. The program provides recruitment and retention incentives in the form of education loan forgiveness to teachers in designated state teacher shortage subject areas who graduate from Iowa colleges and universities and teach in Iowa.
Q. Who is providing the funding for the program?
A. Iowa Student Loan is providing the funding.
Q. How does this program connect to other state or federal teacher shortage initiatives?
A. This program is designed to supplement existing programs by providing teachers with additional benefits. Iowa Student Loan representatives can provide information on related programs from which qualified applicants may also be able to receive benefits.
Return to Top
Eligibility
Q. Are all current and/or future teachers in Iowa eligible to apply for the program?
A. No. Applicants must be students at an Iowa college or university for at least a portion of the award year covered by the application. The award year covered by this application runs from July 1 through June 30. Once approved, recipients must teach in Iowa in a shortage area designated by the Iowa Department of Education.
Return to Top
Maximum Benefit and Timeframe
Q. How much loan forgiveness can a qualifying teacher receive?
A. A qualifying teacher can receive up to $6,000* in loan forgiveness from the program earned incrementally over five years of teaching. Refer to the Loan Forgiveness Benefit Schedule for more information.
* Loan forgiveness recipients approved during the 2006 – 2007 and 2007 – 2008 academic years will continue to be eligible for loan forgiveness of up to $9,000, as previously awarded
Return to Top
Qualifying Loans
Q. What educational loans qualify for forgiveness through the program?
A. Qualifying education loans include:
- Federal Family Education Loan Program (FFELP) subsidized and unsubsidized Stafford Loans owned or serviced by Iowa Student Loan.
- Private (student) loans owned or serviced by Iowa Student Loan.
- Federal Consolidation Loans, including loans in the William D. Ford Federal Direct Loan Program (Direct Loan), consolidated with Iowa Student Loan.
Iowa Student Loan must be the owner or servicer of any educational loans that you would like considered for the Iowa Student Loan Teacher Education Loan Forgiveness Program.
If Iowa Student Loan is not your current lender for any educational loans, you may want to review federal loan consolidation options with Iowa Student Loan after completing your academic program. Please call Matt Brown at (800) 243-7552, ext. 7656 to discuss your individual situation. Please also review the disclosure related to federal loan consolidation.
Return to Top
Taxes
Q. Are loan forgiveness benefits taxable?
A. Approved applicants who receive loan forgiveness benefits from Iowa Student Loan will be issued an IRS form 1099-C. Applicants should consult a tax professional to understand any tax implications associated with the loan forgiveness amounts that are received.
Return to Top
|