Student Loans of North Dakota: Federal Loan Forgiveness Programs

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Loan forgiveness is the release of a borrower's obligation to repay his or her loan, either in whole or in part, as a result of public service. Information about loan forgiveness programs offered by the state of North Dakota and the Federal Government are listed below.

The North Dakota Legislature has established two state programs that provide loan forgiveness to North Dakota residents working in certain professions. You may click on the links below to get specific information on these programs and the eligibility criteria.

Technology Occupations Student Loan Program - The Technology Occupations Student Loan Program will reduce student loan indebtedness by up to $1,000 per year (maximum of $3,000) for those who have graduated in a technology related field and been employed in a technology occupation in North Dakota for one year.

Teacher Shortage Loan Forgiveness Program - The Teacher Shortage Loan Forgiveness Program will reduce student loan indebtedness by up to $1,000 per year (maximum of $3,000) for those who teach at a grade level or in a content area identified as a teacher shortage area by the superintendent of public instruction.

Federal Loan Forgiveness Programs
Congress has authorized two federal programs that provide loan forgiveness to qualified Federal Family Education Loan Program (FFELP) borrowers. Both of these programs and their corresponding borrower eligibility criteria are outlined in the section below.

Teacher Loan Forgiveness Program
Loan Forgiveness Demonstration Program for Child Care Providers

Teacher Loan Forgiveness Program

The Teacher Loan Forgiveness Program is intended to encourage individuals to enter and continue in the teaching profession in certain eligible elementary and secondary schools that serve low-income families. Under this program, the U.S. Department of Education (DOE) repays a maximum of $17,500 (combined total for loans obtained under both the Federal Family Education Loan Program (FFELP) and the Federal Direct Loan Program (FDLP) of a qualified borrower's Stafford loan obligations, and a Consolidation Loan if the Consolidation Loan repaid an eligible Stafford loan(s).

To be eligible for forgiveness up to $5,000, you must meet the criteria under 1 and 2 below.

For forgiveness up to $17,500, you must meet the criteria under 1, 2, and 3 below.

1) Loans made on or after October 1, 1998 qualify for forgiveness if, at the time you received the loan, you did not have an outstanding balance on a Direct Loan or a FFELP loan.

2) You must have been employed as a full-time teacher for five (5) consecutive, complete academic years at a qualifying school, as certified by the chief administrative officer at that school. A qualified school is one that meets all of the following criteria:

Is in a school district that qualifies for funds under Title I of the Elementary and Secondary Education Act of 1965, as amended.
Has been selected by the U.S. Department of Education based on a determination that more than 30 percent of the school's total enrollment is made up of children who qualify for services provided under Title I.
Is listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. (If this directory is not available before May 1 of any year, the previous year's directory may be used.)

3) You must meet the definition of a "highly qualified" secondary teacher of science or math or a "highly qualified" elementary or secondary school special education teacher. The definition of "highly qualified teacher" is contained in section 9101 of the Elementary and Secondary Education Act of 1965.

General information, definitions, and eligibility requirements may be found on the Teacher Loan Forgiveness Application, which can be downloaded using Adobe Acrobat Reader to view and print.

* If after reviewing the application you still have questions, please contact 1-800-472-2166 ext. 5660 or e-mail bndsl@nd.gov.

*If you do not have Adobe Acrobat Reader installed, please visit the PDF Help Page. If you have Acrobat Reader installed and experience problems in downloading the form(s), we recommend that you download the most recent version of Acrobat Reader, which is 6.0.

Child Care Provider Loan Forgiveness Program

The Loan Forgiveness Demonstration Program for Child Care Providers is intended to bring more highly trained individuals into the early child care profession and to retain those providers for longer periods of time. Loan forgiveness under this demonstration program is contingent upon the availability of annual appropriations. Under this program, the U.S. Department of Education repays up to 100% of a borrower's eligible Stafford loan obligations. For the purpose of this program, the term "child care services" is defined as activities and services provided for the education and care of children from birth through age 5.

A borrower must meet the following criteria to qualify for this forgiveness program:

Loans made on or after October 8, 1998 qualify for forgiveness if, at the time you received the loan, you did not have an outstanding balance on a Direct Loan or a FFELP loan.
Your eligible loan(s) must have been made before the beginning of your qualifying child care service.
You must have received an associate's or bachelor's degree in early childhood education after October 7, 1998. This field is defined as education in the areas of early child education, child care, or any other educational area related to child care that the U.S. Department of Education determines to be appropriate.
You must obtain employment in a child care facility, defined as a facility, including a home, that provides child care services and meets applicable state or local government licensing, certification, approval, or registration requirements, if any.
You must work full-time as a child care provider in a low-income community for at least two consecutive years immediately preceding the year during which forgiveness is requested. A low-income community is defined as one in which at least 70% of households within the community earn less than 85% of the state's median household income.

20% after completion of the 2nd year
20% after completion of the 3rd year
30% after completion of the 4th year
30% after completion of the 5th year

DOE will also pay a proportionate amount of the interest that accrues each year.

If an individual not participating in this program returns to school, after initially graduating from school, to obtain an associate or baccalaureate degree in early childhood education, the student may apply to the U.S. Department of Education for repayment under this forgiveness program of qualified loans received for a maximum of two academic years when the student returned to school. Repayment by DOE will be made in accordance with the preceding rate schedule.

DOE will give loan repayment priority to borrowers who received forgiveness in the prior year. No borrowers may, for the same service, receive a benefit under both this Loan Forgiveness Demonstration Program for Child Care Providers and subtitle D of Title I of the National and Community Service Act of 1990.

If eligible, you may request loan forgiveness at the end of the second and each subsequent year of eligible child care employment by submitting a completed Child Care Provider Loan Forgiveness Application, (which can be downloaded using Adobe Acrobat Reader to view and print*), to DOE and providing any supporting documentation DOE requires. DOE will determine the borrower's eligibility and notify the borrower of the amount that is being forgiven.

If after reviewing the application you still have questions, please contact 1-800-472-2166 ext. 5660 or e-mail bndsl@nd.gov.

*If you do not have Adobe Acrobat Reader installed, please visit the PDF Help Page. If you have Acrobat Reader installed and experience problems in downloading the form(s), we recommend that you download the most recent version of Acrobat Reader, which is 8.0.



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