Teaching in a Field with a Shortage of Teachers

For shortage cancellations you must:

  • satisfy the criteria for teaching.
  • teach in a field with a shortage of teachers.

Criteria for Teaching in a Field with a Shortage of Teachers

To qualify for this sort of cancellation:

  • the majority of classes must be taught in the borrower's field of expertise
  • that field of expertise must be:
    • science,
    • mathematics,
    • a foreign language,
    • bilingual education, or
    • a subject determined by the State Department of Education to have a shortage of qualified teachers.

If you feel that you qualify for cancellation because you teach in a field with a shortage of teachers, you may verify that your school is in the list of federally-designated teacher shortage areas at the government's Teacher Cancellation site.

Criteria for Teaching

A teacher is a person who provides to students

  • either direct classroom teaching
  • or classroom-type teaching in a non-classroom setting,
  • or educational services directly related to classroom teaching
    (e.g. librarian; guidance counselor)

In addition, the borrower must be:

  • teaching full time
  • in a public or other nonprofit elementary or secondary school system
  • directly employed by the school system.

Teaching in Multiple Locations

A borrower who is simultaneously teaching part time in two or more schools may request a cancellation if an official at one of the schools certifies that the borrower taught full time for a full academic year. For example:

  • under a consortium agreement, a borrower may be employed by the consortium and teach at member schools.
  • two or more schools, by mutual agreement, could arrange to have one school employ the borrower on a full-time basis and then hire out his or her services to the other school(s) involved in the agreement.
  • a borrower can be considered to have been a full-time teacher for an academic year if he or she can obtain appropriate certifications that he or she has taught in two half-time teaching positions for a complete academic year in two elementary or secondary schools or in two secondary schools.

If it cannot easily be determined that the borrower taught full time, then the borrower's cancellation request must be denied.

Incomplete Academic Year

Borrowers who cannot complete the academic year because of illness or pregnancy may still qualify for cancellation if they:

  • have completed the first half of the academic year
  • have begun teaching the second half of the academic year
  • are deemed by their employer to have fulfilled the year's contract.

Rate of Cancellation

Any interest that may have accrued during the year of eligible employment will be canceled. In addition, the following percentages of the original principal loan amount will be canceled.

Years of CancellationRate of Cancellation
First year 15%
Second year 15%
Third year 20%
Fourth year 20%
Fifth year 30%

Forms

Return to Cancellation Page