Frequently Asked Questions & Answers Federal Student Loan Forgiveness
Q1: I heard the Congress passed a new law identifying speech-language pathologists (SLPs) and audiologists as professions in national need and therefore eligible to have their student loans forgiven, tell me more?
A1: On August 6, 2008, the U.S. Congress sent H.R.4137, the Higher Education Opportunity Act, to the White House. On Thursday, August 14, 2008, the President signed the bill in to law (P.L.110-315).
P.L.110-315 re-authorizes and revises many of the existing federal programs involving higher education (individual loans and grants, institutional aid, and other higher education access programs).
Included in the law is a new program that identifies seventeen professions of national need, including certain SLPs and Audiologists, and therefore eligible for loan forgiveness.
Though ASHA and other groups have requested that this program receive funding, IT HAS NOT RECEIVED ANY FUNDING TO DATE.
Q2: When will the Secretary issue regulations and when will congress fund the program?
A2: First, the Obama Administration has not announced any plans to issue regulations for this program.
Second, authorizing committees that create, revise, and terminate federal programs but do NOT provide funding for them created this loan forgiveness program. The House and Senate Appropriations Committees play this critical role. ASHA requested funding for this program for the 2010 federal fiscal year beginning on October 1, 2009. However, Congress has NOT included funding for this program for 2010.
Q3: Is congress likely to fund this program?
A3: It is unlikely that this program will receive any or even a modest amount of funding in the near future.
There are many demands and constraints on the federal budget. Congress and the Obama Administration will weigh all of these priorities and determine which ones will receive funding.
Q4: If this program is funded, how do I know if I qualify?
A4: For SLPs, P.L.110-315 stipulates that you must:
- be employed full-time as a speech-language pathologist…in an eligible preschool program or a school that has a large number of students in poverty; and
-have, at a minimum, a graduate degree in speech-language pathology or communication sciences and disorders.
For Audiologists, P.L.110-315 stipulates that you must:
- be employed full-time as an audiologists…in an eligible preschool program or a school that has a large number of students in poverty; and
-have, at a minimum, a graduate degree in audiology or communication sciences and disorders.
Q5: I do not work in a school, am I still eligible and why?
A5: No, you are not eligible under this program. Why? The available evidence indicates that shortages of qualified SLPs and Audiologists are most severe in school-based settings. While shortages may exist in other settings either the evidence is limited, cannot substantiate it, or other factors prohibit public funds being used for loan forgiveness.
Q6: How do I find out if the school that I work in is a high-need school under this program?
A6: https://www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubSchoolSearch.jsp
Q7: How much of my loans would this program forgive?
A7: P.L.110-315 states that for each school, academic, or calendar year of full-time employment that an eligible borrower completes on or after the date of enactment [the day the president signed the bill in to law, 8/14/2008] of the Higher Education Opportunity Act, the Secretary of Education shall forgive not more than $2,000 of the student loan obligation of the borrower that is outstanding after the completion of each such school, academic, or calendar year of employment, respectively. Moreover, the Secretary shall not forgive more than $10,000 taken together for any borrower and no borrower shall receive loan forgiveness under this section for more than five years of service.
Q8: What kinds of loans are eligible under this program for forgiveness?
A8: All federal Stafford FFEL and Direct loans except for PLUS loans or consolidation loans are eligible for forgiveness. However, no borrower may receive, for the same service, loan forgiveness under both this program and another federal loan forgiveness program. In essence, there is no double benefit/double dipping allowed.
Q9: When can I sign up or apply for loan forgiveness? What form do I need to fill out or web site I need to visit to begin the forgiveness process?
A9: At this time, there is no form to fill out or web site to visit. The Secretary of Education needs to promulgate regulations on how this program will run and the program needs to receiving funding before applications will be accepted.
Q10: What happens if congress does provide funding for this program but not enough for everyone who is eligible?
A10: If funding is available, the Secretary of Education shall grant loan forgiveness on a first-come, first-served basis, and subject to the availability of funding.
Q11: I have loans from the 1990s that I am still paying off. Will these loans be eligible for forgiveness?
A11: There are no loan origination restrictions in this program. Also, see answer #7.
Q12: Are there other federal loan programs that are up and running that I may be eligible?
A12: 1. In some circumstances, certain SLPs and Audiologists may be eligible for federal loan forgiveness. Please consult the U.S. Department of Education Student Aid Portal web site (http://studentaid.ed.gov/PORTALSWebApp/students/english/repaying.jsp) or your lender for more information.
2. ASHA certified school-based SLPs and Audiologists have been eligible for Federal Perkins Loan forgiveness since 1994. For more information, please go to: http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelperk.jsp?tab=repaying
3. As of July 1, 2009, there is a new federal Income-Based Repayment (IBR) program. This new repayment option (the income-sensitive repayment plan in the FFEL program and the income-contingent repayment plan in the Direct Loan program will continue to be available to borrowers) is available as of July 1, 2009, to all FFEL and Direct Loan borrowers who have a partial financial hardship. Under this plan, your required monthly payment amount will be based on your income during any period when you have a partial financial hardship. Your monthly payment amount may be adjusted annually. The maximum repayment period under this plan may exceed 10 years. If you repay under this plan and meet certain other requirements over a specified period of time, you may qualify for cancellation of any outstanding balance on your loans. Contact the Direct Loan Servicing Center (for Direct Loans) or your FFEL lender (for FFEL Program loans) for more information about the Income-Based Repayment Plan. http://studentaid.ed.gov/PORTALSWebApp/students/english/difficulty.jsp?tab=repaying
4. Through the College Cost Reduction and Access Act of 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, borrowers may qualify for forgiveness of the remaining balance due on their eligible federal student loans after they have made 120 payments on those loans under certain repayment plans while employed full time by certain public service employers. Since borrowers must make 120 monthly payments on their eligible federal student loans beginning after October 1, 2007 before they qualify for the loan forgiveness, the first cancellations of loan balances will not be granted until October 2017. http://studentaid.ed.gov/students/attachments/siteresources/LoanForgivenessv4.pdf
Q13: I want to look at the bill and see exactly what it says, how do I do that?
A13: Go to the Library of Congress, Thomas Legislative Information web site at: http://thomas.loc.gov/, under “Find More Legislation” click on “Search Multiple, Previous Congresses”, check “110th Congress”, type in “College Opportunity and Affordability Act of 2008” in the search box, and hit the “Search” button.
Q14: Whom can I contact for more information?
A14: With ASHA: Neil Snyder, Director of Federal Advocacy at 800-498-2071 xt. 5614 or nsnyder@asha.org.
With the U.S. Department of Education: Federal Student Aid Information Center (FSAIC) at http://studentaid.ed.gov/PORTALSWebApp/students/english/contactus.jsp
Federal Student Aid Information Center (FSAIC) . . . 1-800-4-FED-AID
(1-800-433-3243)
TTY users (for
the hearing-impaired) can call …………………………….1-800-730-8913
Callers in locations without access to 800 numbers may call 1-319-337-5665 (this is not a toll free number)
Q15: How can I find out if my state runs a loan forgiveness program for educators?
A15: The American Federation of Teachers (AFT) has a web page on state teacher loan forgiveness programs. Please go to:
http://www.aft.org/tools4teachers/loan-forgiveness.htm and click on your state.
The New York Times have published a number of articles on state loan forgiveness programs and how they are fairing during this economic downturn. Please go to:
Updated: August 26, 2009