Cancellation/Deferment Options for Teachers

If you're a teacher serving in a low-income or subject-matter shortage area, it might be possible for you to cancel or defer your student loans.

If you have a loan from the Federal Perkins Loan Program, you might be eligible for loan cancellation for full-time teaching at a low-income school or teaching in certain subject areas. Find out more here. You can also qualify for deferment for these qualifying teaching services. Check with the school that made your Perkins Loan for more information.

If you teach full time for five consecutive years in a low-income school, you might be eligible to have a portion of your loan cancelled. This applies to FFEL^SM Stafford Loans, Direct Subsidized and Unsubsidized Loans, and in some cases, Consolidation Loans.

Stafford Loan Deferment/Forbearance Provisions

If you have a FFEL or Direct Stafford Loan and you're teaching full time in a teacher shortage area, you might be eligible for deferment (postponement of repayment) if you borrowed before July 1, 1993. For more information, click here. If you borrowed on or after July 1, 1993, you might be eligible for forbearance (a temporary postponement or reduction). For more information, click here.

If you have a Paul Douglas Teacher Scholarship, you might be eligible for reduced service obligations. (Note: These scholarships were last awarded in 1995-96.) Recipients of the Paul Douglas Teacher Scholarship may reduce the years of service they must perform by teaching in a shortage area.