Who qualifies
You must have taught full time for five consecutive complete academic years at an elementary or secondary school, or an educational service agency, that serves low-income families. The school must be listed in the Department’s Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits (34 CFR 685.217). If the school was listed for at least one of your five years, the later years still count even if it drops off the list.
How much
| Teacher | Up to |
|---|---|
| Most eligible teachers | $5,000 |
| Highly qualified secondary math or science teachers, and highly qualified special education teachers | $17,500 |
Which loans
Direct Subsidized and Unsubsidized Loans, Subsidized and Unsubsidized Federal Stafford Loans, and in some cases consolidation loans. PLUS loans aren’t covered. The loan must have been made before the end of your fifth year of qualifying teaching.
Also worth knowing
The program is only for borrowers who had no outstanding Direct Loan or FFEL balance on Oct. 1, 1998, or no outstanding balance when they took out a loan after that date.
Teachers can also qualify for PSLF; see PSLF qualifying employers.
Not financial or legal advice. This page explains the published rules. It does not tell you which plan to choose. Your loan servicer and StudentAid.gov have the final word on your account.
Official sources
Last verified Oct 17, 2026. Corrections are logged on What changed.
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