Dorothy Durfee Avery
Loan Forgiveness Program
The Avery Forgivable Loan is an institutional loan available only to students in the Stanford Teacher Education Program (STEP). If you are eligible for this loan it will be offered on your financial aid award letter. Funds are limited.
- $20,000 maximum for the 2014–2015 academic year.
- Borrowers who qualify for forgiveness will have both principal and interest forgiven. For those who do not qualify, the terms of the loan will match the federal Direct unsubsidized loan: 6.8% interest accrues during enrollment, grace, and repayment, with a ten-year repayment term.
- 0% interest rate while you are enrolled in STEP and during the deferment period while working in a teaching position eligible for forgiveness. If you do not teach in an acceptable program, the loan terms convert to those of the federal Unsubsidized Direct loan.
- No Credit Check required. If you are not in default on a prior educational loan, do not owe a repayment of federal grant funds, and meet federal aid eligibility requirements, you will be approved to borrow the loan.
Criteria for Forgiveness
- STEP graduates teaching in public schools are eligible for forgiveness, and those teaching in private schools that benefit underserved communities will also be considered. Those who teach at schools in foreign countries are not eligible for loan forgiveness. The School of Education will make the final determination of eligibility.
- You will be required to provide documentation establishing your eligibility every year.
- The entire amount of the Avery loan is eligible for forgiveness.
- 50% of your loan is forgiven after your second year of teaching; the remaining 50% is forgiven after your fourth year.
- If you do not complete four years of teaching, once you stop teaching you will be required to begin repayment to Stanford University on your remaining loan principal and interest. The interest rate will correspond to the interest rate for federal Direct unsubsidized loans, currently 6.8% with a ten year repayment period.
How to Apply for the Avery Forgivable Loan
1) Accept Your Loan in Axess
- If the loan is included in your award you can accept it in AXESS. Under the Student Center tab, in the Finances section, select "Accept/Decline Awards." You can accept the maximum amount, specify a lower amount, or decline the loan.
- If you do not have the loan included in your award, submit a request to firstname.lastname@example.org.
- If you have not applied for financial aid, complete the application requirements for STEP students.
2) Complete your Self-Certification Form and Promissory Note
- You will receive an email from University Accounting Service (UAS) within two business days of accepting your loan in AXESS. If you do not receive an email from UAS, check for your promissory note at SignMyLoan.
- You will be directed to the UAS site and required to create a PIN and provide contact information for three references. You will then be asked to complete your self-certification form and promissory note.
- Once you have signed your promissory note, UAS will send you a finalized loan disclosure confirming the terms of your loan. At the time that this final disclosure is delivered, your "right-to-cancel" period begins. During this period of six business days, you may cancel the loan by calling UAS at (800) 999-6227 or the Stanford Financial Aid Office at (650) 723-3058.
Receiving Your Loan Funds
Loans are generally divided evenly over the three quarters of the academic year and do not include the summer quarter of STEP. If your promissory note is complete, your loan funds will be applied to your University bill a few days prior to the beginning of each quarter. If the quarter has already begun, you can monitor your loan disbursements in AXESS.
Note: your loan funds cannot be credited to your bill before the end of the "right-to-cancel" period.Updated on July 15, 2014 10:51 AM