To qualify for Stafford Loan deferment or cancellation, you must either serve in a school that provides services to a low-income population, or you must teach in a subject that has been identified as a critical shortage area. Loan cancellation is only available to those who work in low-income schools – borrowers who teach in critical shortage areas are only eligible for a loan forbearance.

If you work in a low-income school, you must complete 5 years of full-time employment, and you must be accredited as a “highly qualified” instructor. The maximum forgiveness amount is $5000, unless you work in mathematics, science, or special education, in which case you could qualify for a maximum forgiveness of $17,500.

You can not apply for the program until you have completed the 5 years of employment. There’s a good brochure here that describes the Stafford Loan Forgiveness Program, or you can read all of this in more detail on the Department of Education’s web page here:

Do not confuse this program with the newer TEACH Grant program that offers grants of up to $4000 for current students who sign a contract agreement obligating them to work in low-income schools upon graduation.

If you want to see the list of low-income schools that qualify for the cancellation program, that list can be accessed and searched here:

I hope that helped – as you can see – no guesses!

Good luck!