Federal Stafford Loan Forgiveness Program for Child Care Providers

Eligibility

To be eligible, the provider:

• Must be a new borrower as of October 7, 1998. The definition of a "new borrower" is a borrower who had no outstanding balance on a Federal Family Education Loan Program (FFELP) or William D. Ford Federal Direct Loan (Direct Loan) Program loan on October 7, 1998, or has no outstanding loan balance on the date the borrower obtains a new loan after October 7, 1998.
• Must have earned an associate’s or bachelor’s degree in early childhood education.
• Must have worked at least 30 hours per week for at least two consecutive years at a child care facility that provides for the education and care of children through the age of five. The facility (which may be a home) must meet applicable state or local requirements. At least 70% of the households served by the facility must come from households that earn less than 85% of the state median household income.
• May not receive forgiveness if he or she receives a benefit for the same child care service under AmeriCorps.

Program Benefits

Up to 100% of the outstanding balance of an eligible Federal Stafford Loan may be forgiven in increments based onthe child care provider’s term of qualifying employment, according to the following schedule:

• 20% after two consecutive years of qualifying employment
• 20% after three consecutive years of qualifying employment.
• 30% after each of the fourth and fifth consecutive years of qualifying employment.

This program only pays the outstanding eligible Federal Stafford Loan balances. Amounts previously paid by or on behalf of the child care provider will not be refunded.

Application

NOTE: This federal program is NOT accepting new applicants into the program because no additional funding has been provided. Applications for renewal benefits, however, are available for those borrowers who have previously been granted forgiveness under the Child Care Provider Loan Forgiveness Program.

If you have any questions with regard to the Child Care Provider Loan Forgiveness Program or the Child Care Provider Loan Forgiveness Application, you can contact the Child Care Provider Loan Forgiveness Unit at 1-888-562-7002 (TDD: 1-800-877-8339).

You can also visit studentaid.ed.gov and scroll to the bottom of the page for additional information, including renewal application and forbearance forms.