Not always. A lender/loan holder must grant forbearance during each of a borrower’s five years of qualifying teaching service if the lender believes that the forgiveness amount will pay the borrower’s entire loan balance at the request of a borrower. A borrower may be eligible to receive up to $17,500 as a special education teacher.
Any interest that accrues through the forbearance period may be capitalized.
The forbearance is provided in 12 thirty days increments together with debtor must re-apply every year.
Can a debtor having a defaulted ffel loan qualify for Teacher Loan Forgiveness? Yes. If your debtor is in standard of the FFEL loan(s), they could become eligible for forgiveness if they have made satisfactory repayment plans using the holder associated with the defaulted loan(s).