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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.
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. (This document requires Adobe Acrobat Reader to view and print. If you do not have Adobe Acrobat Reader installed, please click the link
above to download the latest version free of charge.)
* If after reviewing the application you still have questions, please contact
1-800-472-2166 ext. 5660 or e-mail bndser@nd.gov.
Public Service Loan Forgiveness Program
This program discharges any remaining debt after 10 years of full-time
employment in public service. The borrower must have made 120 payments
as part of the Direct Loan program in order to obtain this benefit. Only
payments made on or after October 1, 2007 count toward the required 120
monthly payments.
Eligibility
The public service loan forgiveness program has several restrictions:
- Term: The forgiveness occurs after 120 monthly payments made on or after October
1, 2007 on an eligible Federal Direct Loan. Periods of deferment and forbearance
are not counted toward the 120 payments.
- What is forgiven? The remaining interest and principal
are forgiven.
- Employment: The borrower must be employed full-time in a
public service job for each of the 120 monthly payments.
Public service jobs include, among other positions, government,
military service, public
safety and law enforcement (police and fire), public health, public
education, public early childhood education, public child care, social
work in a public child or family service agency, public services for
individuals with disabilities or the elderly, public interest legal
services (including prosecutors, public defenders and legal advocacy
in low-income communities), public
librarians, school librarians and other school-based services, and
employees of tax exempt 501(c)(3) organizations. Full-time faculty at
tribal colleges and universities, as well as faculty teaching in
high-need areas, also qualify.
- Eligible Loans: Eligible loans include Federal Direct
Stafford Loans (Subsidized and Unsubsidized), Federal Direct PLUS
Loans, and Federal Direct Consolidation Loans. Borrowers in the Direct
Loan program do not need to consolidate in order to qualify for loan
forgiveness. Borrowers in the FFEL program will need to consolidate
into Direct Loans.
To obtain additional information, please contact 1-800-472-2166 ext. 5660
or e-mail bndser@nd.gov.
Please Note:
The public service loan forgiveness program is targeted at students who
pursue public service careers and who have high debt and low income. Borrowers
with low debt or high income will not benefit as much.
Income-Based Repayment
Income-Based Repayment (IBR) is a new payment option for federal student
loans. Starting July 2009, it will help borrowers keep their loan payments
affordable with payment caps based on their income and family size. For
most eligible borrowers, IBR loan payments will be less than 10 percent
of their household income - and even smaller for borrowers with low earnings.
IBR will also forgive remaining debt, if any, after 25 years of qualifying
payments. For additional information, contact 1-800-472-2166 ext. 5660
or e-mail bndser@nd.gov.
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