Forgiveness Programs

From the State of Maryland

Janet L. Hoffman Loan Assistance Repayment Program

Who may apply: Maryland residents who provide public service in Maryland state or local government or non-profit agencies in Maryland to low income or underserved residents.

Applications are available in June and due September 30.

  • Must have earned degree in MD or a resident teacher certificate from MSDE
  • Must be employed full time
  • Annual Salary must not exceed $60,000 if single or $130,000 if married (different for nurse faculty)
  • Cannot fulfill other service requirements at same time

Total Debt

Overall Award Limit

Yearly Payment

$75,001 - Over

$30,000

$10,000

$40,001 - $75,000

$18,000

$6,000

$15,001 - $40,000

$9,000

$3,000

$15,000 - Below

$4,500*

$1,500*

More information about state forgiveness programs.

From the Federal Government

Federal Teacher Loan Forgiveness Program

  • Cannot have outstanding balance on loans as of October 1, 1998
  • Have been employed for at least 5 consecutive years as a full-time teacher designated as low income (check website above to find out about your school)
  • Cannot be in default
  • Cannot have received a benefit for the same teaching service through AmeriCorps
  • Have to have received the loan (s) before the end of your fifth year of teaching
  • $5000 per year
  • $17,500 for certain specialties (Math or science in secondary school OR Special education teacher who taught in areas related to your training)

10 years Public Service Forgiveness

  • Must consolidate with Direct Loans
  • Must do income contingent or income based repayment plan (standard repayment has no benefit)
  • After 120 payments are made, the remaining principle and interest are forgiven
  • Borrower must be employed full time in a public service job:
    • Military service
    • Public safety
    • Law enforcement
    • Public health
    • Public education
    • Social work
    • Public services for people with disabilities
    • Public interest legal services
    • Public librarians
    • Employees of tax exempt organizations
  • Includes any loans that were consolidated into Direct Loans (Stafford, Grad PLUS and Perkins)
  • Targeted for those with high debt and low income o Forgiven amount is not taxable

More information about loan forgiveness programs from the federal government.