OTHER FUNDING SOURCES - FEDERAL GRANT PROGRAMS
|Federal Family Education Loan (FFEL) Program and William D. Ford Federal Direct Loan Program|
|To announce the eligibility criteria and procedures for implementation of the child care provider loan forgiveness demonstration program authorized by section 428K of the Higher Education Act of 1965, as amended (HEA), for FY 2002. Under the demonstration program, some child care providers may have a portion of their student loans forgiven for continued work in certain child care facilities each year up to 5 years.
Eligibility:(A) To qualify for the child care provider loan forgiveness demonstration program, an applicant must: (1) Be a new borrower with eligible loans, in the FFEL or Direct Loan Programs, as defined in the “Program Definitions” section of this notice; (2) Have received an associate or bachelor's degree in the field of early childhood education or child care that was awarded by an institution of higher education after October 7, 1998; and (3) After receiving an associate's or bachelor's degree in early childhood education or child care, have worked full-time for at least two consecutive years preceding the year during which forgiveness is requested as a child care provider in a facility that serves a low-income community. (B) A borrower may not receive benefits for the same child care service under both subtitles D of title I of the National and Community Service Act of 1990 (Americorps) and this demonstration program. Renewal Applicants Who Received a Partial Forgiveness in FY 2001: (A) To qualify for further loan forgiveness under the Child Care Provider Loan Forgiveness Demonstration Program, a borrower must: (1) Have been determined previously to meet the eligibility requirements for a forgiveness as described in this notice and continues to meet those criteria; and (2) Have completed the third consecutive year of full-time employment as a provider in a child care facility that serves a low-income community.
Funding:FY 2002 appropriation: $1,000,000
Contact:Don Watson, U.S. Department of Education, 830 First Street NE, Washington, DC 20202-5346; Phone: (202) 377-4008