Every month, HESC’s “Question and Answer” Web feature includes an interesting question presented to the Office of Counsel and Regulatory Compliance staff.

This month’s winning question is:

I am a qualified full-time special education teacher in my first year of teaching at a low-income designated school that receives Title 1 benefits and I have an outstanding Stafford loan balance of $12,000. Must I make monthly payments to my lender until I am eligible for Teacher Loan Forgiveness upon completion of my fifth year of teaching?

Not necessarily. At the request of a borrower, a lender/loan holder must grant forbearance during each of a borrower’s five years of qualifying teaching service if the lender believes that the forgiveness amount will pay the borrower’s entire loan balance. As a special education teacher, a borrower may be eligible to receive up to $17,500.

Any interest that accrues during the forbearance period may be capitalized.

The forbearance is granted in 12 month increments and the borrower must reapply each year.


Direct questions regarding this guidance to the Office of Counsel and Regulatory Compliance at 518-473-3986; or toll-free at 1-866-431-HESC (1-866-431-4372), press 6; or via email at askpolicy@hesc.org.