South Carolina Student Loan

Current Borrowers

Teacher Forgiveness

We are proud to offer loan forgiveness for teachers.  Teachers must meet certain criteria in order to qualify for forgiveness.

Stafford Loan Forgiveness

For borrowers who received a Federal Stafford Loan, you may be eligible for the US Department of Education’s Stafford Loan Forgiveness Program for teaching–if you received your first loan on or after October 1, 1998.  You may be eligible to have up to $5,000 of your indebtedness forgiven after teaching for five consecutive, complete school years in a low income school. Recipients teaching math or science at the secondary level or special education at any level, upon meeting specific criteria including teaching for five consecutive, complete school years in a low income school, may be eligible to forgive up to $17,500.  For additional information, visit the US Department of Education.

If you have taught for five consecutive years, you can apply for the Stafford Loan Forgiveness for Teachers.  
 
If you have not yet taught for five years, you may qualify for a forbearance.  If your loan balance plus five years of interest will be less than the amount of the expected forgiveness, complete this form.

SC Teachers Loan Forgiveness

Borrowers who received a SC Teachers Loan or a SC PACE Loan may be eligible to forgive portions of your loan indebtedness by teaching in certain critical geographic and subject areas in the SC public school system. This forgiveness is available only to certified teachers and not to teacher's aides or teacher assistants and only to recipients of the SC Teachers Loan. 

  • Critical Geographic Schools - If you taught in one of these schools during a particular school year, you may be eligible for forgiveness.  Critical geographic areas are designated annually by the State Board of Education. It is the recipient's responsibility to determine a school's designation prior to accepting employment. 
  • Critical Subject Areas - If you received a loan to teach one of these subjects, you may be eligible for forgiveness.
If you have a signed teaching contract and need to postpone your payments on the SC Teachers Loan, please complete the SC Teachers Loan Forgiveness/Interest Rate Reduction Request.  This form should be completed at the beginning of each school year. 
 
To apply for forgiveness of the SC Teachers Loan or SC PACE Loan, simply complete the SC Teachers And Governor's Teaching Scholarship Confirmation formThis form should be completed at the end of each school year. 
   

FAQ’s for SC Teachers Loans
 

  • Is the Teachers Loan or Career Changers Loan available for summer school?
    No, both loans are only awarded for the fall and spring terms.
  • I was awarded the loan for both the fall and spring semesters, but I plan to transfer to another college for the spring. Will my loan "follow me" to my new college?
    No, we will need to cancel your disbursement for the spring semester and you will have to reapply by submitting a new application for your new college.
  • Is the Teachers Loan or the Career Changers Loan automatically renewable from school year to school year?
    No, you will have to reapply each school year. Normally the new school year's application is on our Web site in mid-to-late February.
    If you are a continuing undergraduate, you do have to pass the Praxis (unless you are exempted due to your SAT and/or ACT scores) and have a 2.75 GPA in order to receive the loan again.
  • How does my South Carolina Teachers Loan or Career Changers Loan get forgiven?
    Your SC Teachers Loan or Career Changers Loan may be eligible for forgiveness by teaching in either or both a critical subject or critical geographic area in the South Carolina public school system.

  • How does the forgiveness get applied to my loan balance?
    The outstanding loan balance including interest is forgiven at a rate of 20% or $3,000, whichever is greater, for each full year of teaching in either a critical subject or geographic area in the SC public school system. Teaching in both a critical subject and a critical geographic area may qualify your loan to be forgiven at a rate of 33 1/3% or $5,000, whichever is greater, for each full year of teaching.
  • I already have a teaching certification but I want to go back to school for another certification.  Am I eligible for SC Teachers Loan forgiveness?
    If you are receiving the SC Teachers Loan and are working on a new certification then you must teach in the critical subject area that you designated on your application for your new certification.
  • When I received the SC Teachers Loan (or Career Changers Loan) for the first year, I listed on the application the subject that I wanted to teach and it was listed as critical at that time.  But now that I am applying for the loan again for the next academic year, I noticed that my subject is no longer on the critical list! Does that mean I cannot apply again? Does it mean that the loan I received last year won't be forgiven once I start teaching that subject?
    If the critical subject area ‘falls off’ the list and you’re still in school and applying for additional SC Teachers or Career Changers loan funds, the subject area will be honored for forgiveness as long as you meet the other eligibility criteria.
  • On my application, I indicated that I plan to teach in a critical geographic area, not a subject area.  But what if my critical geographic area falls off the state's critical geographic area list after I start teaching? Does that mean that my loan won’t be forgiven and will have to repay it?
    To be eligible for forgiveness by teaching in a critical geographic area you should ensure that your school is in a critical geographic area at the time you sign your teaching contract.  If you begin teaching in a critical geographic area and then that area is later determined to be no longer critical, your loan will still be eligible for forgiveness. Forgiveness continues as though the critical geographic area determination had not changed.
  • I am teaching in a subject area that wasn’t deemed critical when I applied for the loan, but now it is on the list of critical subject areas.  Do I qualify for loan forgiveness?
    Yes, if you meet the other criteria for forgiveness, then you will qualify for teaching in a critical subject area, even if your subject area wasn’t deemed critical when you applied for the loan.

  • What if a critical geographic area is added to the list after I begin teaching and have already made loan payments?
    Forgiveness will be calculated based on the outstanding principal at the time of the forgiveness application, not at the time you entered repayment.  No prior payments will be refunded.
  • What if I don’t teach a full year?  Can my loan still be forgiven?
    If you don’t teach the school full year, then your outstanding loan balance including interest is forgiven at a rate of 16 2/3% or $2,500, whichever is greater, for each complete term of teaching. 
  • What if I only teach for part of a term?  Can my loan still be forgiven?
    No, you are not eligible for forgiveness for teaching partial terms.
 

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