Other Loans

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.

  • $20,000 maximum per academic year
  • 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 Stafford 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

  • $20,000 maximum can be forgiven.
  • STEP graduates teaching in public schools are eligible for forgiveness, and those teaching in private schools that benefit underserved communities will also be considered. The School of Education will make the final determination of eligibility.
  • You will be required to provide documentation establishing your eligibility every year.
  • 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 principle and interest. The interest rate will correspond to the interest rate for unsubsidized Stafford 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 financialaid@stanford.edu.
  • If you have not applied for financial aid, complete the application requirements for STEP students.

2) Complete Your 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, provide contact information for three references, and sign your promissory note. Using an electronic signature is faster, but you may contact our office if you prefer to sign a paper note.

3) 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.