Upgrade StorageDefaulted Student Loans : Curriculum Vitae
Department of Education
Below, a look at the different Education forgiveness programs as a result due to the rise in Defaulted Student Loans.
Forgiveness Programs
Federal Family Education Loans (FFEL) and William D. Ford
Direct Loan Program (DL)
The largest student loan programs are the FFEL and DL programs administered by ED; together FFEL and DL provided $45.8 billion in new loans in FY2003, and they will provide an estimated $52.2 billion in FY2004. They constitute the nation’s largest source of direct aid for educational expenses of postsecondary students.
The Student Loan forgiveness provisions currently applicable to FFEL and DL loans were adopted in the 1998 reauthorization of the Higher Education Act of 1965, as amended (HEA).
These provisions are for a teacher loan forgiveness program as well as a demonstration loan forgiveness program for childcare providers. These provisions apply to outstanding principal and accrued interest from subsidized and unsubsididized Stafford loans through the FFEL and DL programs.
The teacher loan forgiveness program is an entitlement program, i.e., qualified teachers who apply for the forgiveness will receive it; however, the loan forgiveness program for childcare providers is subject to appropriations. Under both programs, ED is obligated to repay loan holders for student loans forgiven.
Those qualified for this loan forgiveness, and the relevant ratios of required service to amounts of debt forgiven, are summarized at the references below.