Program Overview

If you care for young children as your career, you may not have to repay part of your student loan. Under the Loan Forgiveness Demonstration Program for Child Care Providers, certain child care providers can have a portion of their Federal Stafford loans forgiven.

Eligibility

You are eligible if all of the following apply:
      • You have borrowed a Federal Stafford loan.
      • You had no outstanding loan balance on October 7, 1998.
      • You complete a degree in early childhood education.
      • You find a job in a child care facility (including licensed home facilities).
      • For two consecutive years, you have provided child care services full time in a low-income community (a community in which 70% of households earn less than 85% of the State median household income).

Forgiveness Amount

The forgiveness amount is based on the total amount of all loans that were made for the purpose of completing your degree in early childhood education or child care, and that were made on or after October 7, 1998. The program forgives:
      • 20% of the total outstanding loan amount after the second consecutive year of applicable employment
      • 20% after the third year
      • 30% after the fourth year
      • 30% after the fifth year

To Apply

New applicants are no longer being accepted for the Federal Child Care Provided Loan Forgiveness Program because no additional funding has been provided.

However, if you had previously been granted forgiveness under the Child Care Provider Loan Forgiveness Program, you will continue to be eligible for renewal of benefits. To obtain the CHILD CARE PROVIDER LOAN FORGIVENESS APPLICATION FOR RENEWAL BENEFITS, please contact the Department of Education's Child Care Provider Loan Forgiveness Processing Unit at 1-888-562-7002.