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Expanded Loan Forgiveness
Purpose of the Program
Currently, teachers who were new Federal Family Education Loan or Ford Direct Student Loan borrowers as of October 1998 and taught in qualified low-income schools for 5 consecutive years are eligible for up to $5,000 in student loan forgiveness. The Presidents FY-03 budget will substantially increase the amount of forgiveness for some teachers, reaching up to $17,500 for each qualified individual.
New Program Improvements and Resources
This year, President Bushs budget proposed expanding this program, which is estimated to cost $45 million in FY-03 and a total of $112 million over the next five years.