The Child Care Provider Loan Forgiveness Program began in 2002 as a demonstration program intended to bring more highly trained individuals into the early childcare profession. As such, funds have been very limited over the life of the project. To date, only Fiscal Year 2002-2003 has had funds allocated for distribution. Further, if any future funds are allocated it has been directed that priority will be given to those who have received funds in prior years. To be eligible borrowers must meet the following criteria:

• Must be a new borrower -- No outstanding balance on a Federal Family Education (FFEL) Program or Federal Direct Program Loan as of October 1, 1998.
• Must have an associate or bachelor's degree in early childhood education.
• Must have worked full time for two consecutive years in an eligible childcare facility in a low income community. (A community in which at least 70 percent of the children at the facility are from families earning less than 85 percent of the state's median household income.)
• Must not have received benefits for the same childcare service from the National Community Service Act of 1990 (Americorps).
• Must be working in a facility that meets the licensing, certification, or registration requirements of the state or local government.
• Must maintain full-time employment for successive, uninterrupted 12-month periods.

Forgiveness may be granted in the following increments:

• 20 percent after completing two consecutive years of qualifying employment
• 20 percent after completing the third consecutive year of qualifying employment
• 30 percent after completing the fourth consecutive year of qualifying employment
• 30 percent after completing the fifth consecutive year of qualifying employment

The Child Care Provider Loan Forgiveness and Forbearance application forms are available in Adobe Portable Document Format.