Conditions that Convert a TEACH Grant to a Direct Unsubsidized Loan
A TEACH Grant that you received will be converted into a Direct Unsubsidized Loan under any of the following conditions:
- You request that your TEACH Grant be converted to a loan for any reason (for example, you have decided that you do not want to be a teacher).
- You did not complete the program for which you received a TEACH Grant, and within 120 days of ceasing enrollment you failed to notify your TEACH Grant servicer that:
- You are employed as a full-time teacher in accordance with the requirements described in your TEACH Grant Agreement to Serve (ATS); or
- You are not yet employed as a full-time teacher in accordance with the requirements described in your ATS, but you intend to meet the terms and conditions of your TEACH Grant service obligation.
- You did not complete the program for which you received a TEACH Grant, and within one year after you cease enrollment:
- You have not been determined eligible for suspension of the eight-year period for completing your service obligation;
- You have not reenrolled in a program for which you would be eligible to receive a TEACH Grant; or
- You have not begun qualifying teaching service as described previously.
- You completed the academic program for which you received a TEACH Grant, but do not confirm to your TEACH Grant servicer at least once each year that you intend to satisfy your service obligation.
- You completed the academic program for which you received a TEACH Grant, but do not begin or maintain qualifying employment as a teacher that would allow you to complete your required four years of employment within the maximum eight year period. For example, if more than four years have elapsed since you completed a program for which you received a TEACH Grant and you have not yet begun qualifying teaching service, you would not be able to complete the required four years of teaching within eight years of completing the program.
Other Conditions for Converting a TEACH Grant into a Direct Unsubsidized Loan
In addition to the conditions previously listed, other conditions that prevent you from completing your TEACH Grant service obligation (other than one of the conditions that would qualify you for a discharge of your obligation) could cause your TEACH Grant to be converted to a loan.
For example, a felony conviction (either in the past or in the future) could prevent you from being employed as a teacher, and you would then be unable to complete your service obligation.
In the event that your TEACH Grant is converted to a Direct Unsubsidized Loan, the loan will be serviced by your Federal Loan servicer. Your Federal Loan servicer will provide correspondence regarding your loan(s), including both toll-free phone number and Web site information for your new servicer.