EDU101Loans

This page is under construction. Here's the tidbits of info I have so far:

The Finance Authority of Maine (FAME) handles a forgivable loan program called Educators for Maine. It is $3000 per year. Each year of teaching in Maine qualifies for the cancellation of one year of loan. Students initially apply for it by submitting the application which includes an essay. Renewal recipients reapply annually and are notified by FAME to do so. Students must carry a 3.0 GPA on a 4.0 scale. This program is good for up to $12,000 over 4 years. Here is the web site to find more information on this loan: http://www.famemaine.com/education/financialAidPrograms.asp

The Federal Perkins Loan also has provisions for loan cancellation. This loan is part of the federal funding we receive from the government. There are a number of cancellation provisions for teachers and some other types of employment. Cancellation criteria :For full time teachers in a public or nonprofit elementary or secondary school designated by the Secretary of ED as having a high concentration of low income students and in which more than 30% of the school;s enrollment is Title I children, according to the list published annually in the Federal Register; full time special ed teachers; teachers in a field of expertise such as math, science, foreign languages, bilingual education or other fields where the state education agency determines there is a shortage of qualified teachers.

Beginning in 2008-09 the federal government has come up with a new teacher forgiveness loan program called the Teach Grant. This is a bit of a misnomer as it is really a loan. Legislation is still being worked out on this loan program. What we do know about it is this: if a student accepts this loan while in college then decides to not teach, it reverts to an Unsubsidized Stafford Loan. As the government does not pay interest for the borrower on an Unsubsidized Stafford Loan, we are guessing - because legislation is still unwritten - that the interest will accrue retroactively to the first date of the loan. There are certain criteria that a student must have regarding their GPA (3.25 on a 4.0 scale) or high school grade, must apply annually, providing certain documentation -to be determined in rule making, has a pretty strict service commitment that the recipient who does not teach for at least for years, full time , in a designated high need area in a designate low income school within 8 years of graduation, must repay all funds received, repaying as unsubsidized loans. The amounts are $4000 per year up to $16,000.

For students who currently have an Educators for Maine Loan (EFM) FAME will contact them about renewal. For other students who may be interested in applying we anticipate having applications later this month. They do have to file a FAFSA (FAME changed this rule to require it.)

Perkins Loan is for an on time FAFSA filer with need who indicates they wish to be considered for loan on their FAFSA.

I forgot to also tell you that Stafford Loan has a partial forgiveness program. For students who first borrowed after 10/01/098 and who have taught full time for five years in an eligible school, they may qualify for up to $5000 Stafford Loan forgiven. For this same group but "highly qualified" math or science in secondary schools and special ed in elementary schools they may qualify for up to $17,500 forgiven.

A good site for students to research is http://studentaid.ed.gov/PORTALSWebApp/students/english/discharges.jsp?tab=repaying