1

PART 686—TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION (TEACH) 

GRANT PROGRAM

Subpart A – Scope, Purpose, and General Definitions

§686.1 Scope and purpose.

The TEACH Grant program awards grants to students who intend to teach, to help meet the cost 

of their postsecondary education. In exchange for the grant, the student must agree to serve as a fulltime teacher in a high-need field, in a school serving low-income students for at least four academic 

years within eight years of completing the program of study for which the student received the grant., 

or as a full-time teacher in a high-need field for an educational service agency serving low-income 

students, for at least four academic years within eight years of ceasing enrollment at the institution 

where the student received the grant or, in the case of a student who receives a TEACH Grant at one 

institution and subsequently transfers to another institution and enrolls in another TEACH Grant-eligible 

program, within eight years of ceasing enrollment at the other institution. The eight-year period for 

completing the required four years of teaching does not include periods of suspension in accordance 

with §686.41. If the student does not satisfy the service obligation, the amounts of the TEACH Grants 

received are treated as a Federal Direct Unsubsidized Stafford Loan (Federal Direct Unsubsidized Loan) 

and must be repaid with interest./Ford Loan (Direct Unsubsidized Loan) and must be repaid with 

interest charged from the date of each TEACH Grant disbursement. A TEACH Grant that has been 

converted to a Direct Unsubsidized Loan can be reconverted to a grant only if the Secretary determines 

that the grant was converted to a loan in error or if, within one year of the conversion date, the grant 

recipient provides the Secretary with documentation showing that he or she is satisfying the service 

obligation. 

(Authority: 20 U.S.C. 1070g, et seq.)

§686.2 Definitions.

(a) Definitions for the following terms used in this part are in the regulations for Institutional 

Eligibility under the Higher Education Act of 1965, as amended, (HEA) 34 CFR part 600:

Award year

Clock hour

Correspondence course

Credit hour

Eligible institution

Institution of higher education (institution)
2

Regular student

Secretary

State

Title IV, HEA program

(b) Definitions for the following terms used in this part are in subpart A of the Student 

Assistance General Provisions, 34 CFR part 668:

Academic year

Enrolled

Expected family contribution (EFC)

Free application for Federal student aid (FAFSA)

Full-time student

Graduate or professional student

Half-time student

HEA

Payment period

Three-quarter-time student

Undergraduate student

William D. Ford Federal Direct Loan (Direct Loan) Program

(c) Definitions for the following terms used in this part are in 34 CFR part 77:

Local educational agency (LEA)

State educational agency (SEA)

(d) Other terms used in this part are defined as follows:

Academic year or its equivalent for elementary and secondary schools (elementary or secondary 

academic year):
3

(1) One complete school year, or two complete and consecutive half-years from different school 

years, excluding summer sessions, that generally fall within a 12-month period.

(2) If a school has a year-round program of instruction, the Secretary considers a minimum of 

nine consecutive months to be the equivalent of an academic year.

Agreement to serve (ATS):or repay: An agreement under which the individual receiving a TEACH 

Grant commits to meet the service obligation or repay the loan as described in §686.12 and to comply 

with notification and other provisions of the agreement.

Annual award: The maximum TEACH Grant amount a student would receive for enrolling as a 

full-time, three-quarter-time, half-time, or less-than-half-time student and remaining in that enrollment 

status for a year.

Bilingual education: An educational program in which two languages are used to provide 

content matter instruction.

Educational service agency: A regional public multiservice agency authorized by State statute to 

develop, manage, and provide services or programs to local education agencies (LEAs). 

Elementary school: A nonprofit institutional day or residential school, including a public 

elementary charter school, that provides elementary education, as determined under State law.

English language acquisition: The process of acquiring English as a second language.

Full-time teacher: A teacher who meets the standard used by a State in defining full-time 

employment as a teacher. For an individual teaching in more than one school, the determination of fulltime is based on the combination of all qualifying employment.

High-need field: Includes the following:

(1) Bilingual education and English language acquisition.

(2) Foreign language.

(3) Mathematics.

(4) Reading specialist.

(5) Science, including, but not limited to, computer science.

(6) Special education.
4

(7) Another field documented as high-need by the Federal Government, a State government or 

an LEA, and approved by the Secretary and listed in the Department's annual Teacher Shortage Area 

Nationwide Listing (Nationwide List) in accordance with 34 CFR 682.210(q).).

Highly -qualified: Has (1) When used with respect to any public elementary school or secondary 

school teacher in a State, means that-

(i) The teacher has obtained full State certification as a teacher (including certification obtained 

through alternative routes to certification) or passed the meaningState teacher licensing examination, 

and holds a license to teach in such State, except that when used with respect to any teacher teaching in 

a public charter school, the term means that the teacher meets the requirements set forth in section 

9101(23)the State's public charter school law; and

(ii) The teacher has not had certification or licensure requirements waived on an emergency, 

temporary, or provisional basis;

(2) When used with respect to—

(i) An elementary school teacher who is new to the profession, means that the teacher—

(A) Holds at least a bachelor's degree; and

(B) Has demonstrated, by passing a rigorous State test, subject knowledge and teaching skills in 

reading, writing, mathematics, and other areas of the Elementary and Secondary Education Actbasic 

elementary school curriculum (which may consist of 1965, as amended (ESEA) or in section 

602(10)passing a State-required certification or licensing test or tests in reading, writing, mathematics, 

and other areas of the Individuals With Disabilities Education Act.basic elementary school curriculum); 

or

(ii) A middle or secondary school teacher who is new to the profession, means that the teacher 

holds at least a bachelor's degree and has demonstrated a high level of competency in each of the 

academic subjects in which the teacher teaches by—

(A) Passing a rigorous State academic subject test in each of the academic subjects in which the 

teacher teaches (which may consist of a passing level of performance on a State-required certification or 

licensing test or tests in each of the academic subjects in which the teacher teaches); or

(B) Successful completion, in each of the academic subjects in which the teacher teaches, of an 

academic major, a graduate degree, coursework equivalent to an undergraduate academic major, or 

advanced certification or credentialing; and

(3) When used with respect to an elementary, middle, or secondary school teacher who is not 

new to the profession, means that the teacher holds at least a bachelor's degree and—
5

(i) Has met the applicable standard in paragraph (2) of this definition, which includes an option

for a test; or

(ii) Demonstrates competence in all the academic subjects in which the teacher teaches based 

on a highly objective uniform State standard of evaluation that—

(A) Is set by the State for both grade-appropriate academic subject matter knowledge and 

teaching skills;

(B) Is aligned with challenging State academic content and student academic achievement 

standards and developed in consultation with core content specialists, teachers, principals, and school 

administrators;

(C) Provides objective, coherent information about the teacher's attainment of core content 

knowledge in the academic subjects in which a teacher teaches;

(D) Is applied uniformly to all teachers in the same academic subject and the same grade level 

throughout the State; and

(E) Takes into consideration, but is not based primarily on, the time the teacher has been 

teaching in the academic subject;

(F) Is made available to the public upon request; and

(G) May involve multiple, objective measures of teacher competency.

(4)(i) When used with respect to any public or other non-profit private, elementary or secondary 

school teacher who is exempt from State certification requirements means that the teacher is permitted 

to and does satisfy rigorous subject knowledge and skills tests by taking competency tests in the 

applicable grade levels and subject areas. 

(ii) For purposes of paragraph (4)(i) of this definition, the competency tests taken by a private 

school teacher must be recognized by five or more States for the purpose of fulfilling the highly qualified 

teacher requirements as described in paragraphs (1), (2), and (3) of this definition, and the score 

achieved by the teacher on each test must equal or exceed the average passing score of those five 

States. 

Institutional Student Information Record (ISIR): An electronic record that the Secretary transmits 

to an institution that includes an applicant's—

(1) Personal identification information;

(2) Application data used to calculate the applicant's EFC; and
6

(3) EFC.

Numeric equivalent: (1) If an otherwise eligible program measures academic performance using 

an alternative to standard numeric grading procedures, the institution must develop and apply an 

equivalency policy with a numeric scale for purposes of establishing TEACH Grant eligibility. The 

institution's equivalency policy must be in writing and available to students upon request and must 

include clear differentiations of student performance to support a determination that a student has 

performed at a level commensurate with at least a 3.25 GPA on a 4.0 scale in that program.

(2) A grading policy that includes only “satisfactory/unsatisfactory”, “pass/fail”, or other similar 

nonnumeric assessments qualifies as a numeric equivalent only if—

(i) The institution demonstrates that the “pass” or “satisfactory” standard has the numeric 

equivalent of at least a 3.25 GPA on a 4.0 scale awarded in that program, or that a student's 

performance for tests and assignments yielded a numeric equivalent of a 3.25 GPA on a 4.0 scale; and

(ii) For an eligible institution, the institution's equivalency policy is consistent with any other 

standards the institution may have developed for academic and other title IV, HEA program purposes, 

such as graduate school applications, scholarship eligibility, and insurance certifications, to the extent 

such standards distinguish among various levels of a student's academic performance.

Payment Data: An electronic record that is provided to the Secretary by an institution showing 

student disbursement information.

Post-baccalaureate program: A program of instruction for individuals who have completed a 

baccalaureate degree, that—

(1) Does not lead to a graduate degree;

(2) Consists of courses required by a State in order for a student to receive a professional 

certification or licensing credential that is required for employment as a teacher in an elementary school 

or secondary school in that State, except that it does not include any program of instruction offered by a 

TEACH Grant-eligible institution that offers a baccalaureate degree in education; and

(3) Is treated as an undergraduate program of study for the purposes of title IV of the HEA.

Retiree: An individual who has decided to change his or her occupation for any reason and who 

has expertise, as determined by the institution, in a high-need field.

Scheduled Award: The maximum amount of a TEACH Grant that a full-time student could receive 

for a year.
7

School or educational service agency serving low-income students (low-income school): An 

elementary orschool, secondary school that—

(1) Is in the school district of an LEA, or educational service agency that is eligible for assistance 

pursuant to title I of the ESEA;

(2) Has been determined by the Secretary to be a school in which more than 30 percent of the 

school's total enrollment is made up of children who qualify for services provided under title I of the 

ESEA; and

(3) Is listed in the Department's Annual Directory of Designated Low-Income Schools 

forDepartment’s Teacher Cancellation Benefits.Low-Income (TCLI) Directory. The Secretary considers all 

elementary and secondary schools and educational service agencies operated by the Bureau of Indian 

Education (BIE) in the Department of the Interior or operated on Indian reservations by Indian tribal 

groups under contract or grant with the BIE to qualify as schools or educational service agencies serving 

low-income students.

Secondary school: A nonprofit institutional day or residential school, including a public 

secondary charter school, that provides secondary education, as determined under State law, except 

that the term does not include any education beyond grade 12.

Student Aid Report (SAR): A report provided to an applicant by the Secretary showing the 

amount of his or her expected family contribution.

TEACH Grant-eligible institution: An eligible institution as defined in 34 CFR part 600 that meets 

financial responsibility standards established in 34 CFR part 668, subpart L, or that qualifies under an 

alternative standard in 34 CFR 668.175 and—

(1) Provides a high-quality teacher preparation program at the baccalaureate or master's degree 

level that—

(i)(A) Is accredited by a specialized accrediting agency recognized by the Secretary for the 

accreditation of professional teacher education programs; or

(B) Is approved by a State and includes a minimum of 10 weeks of full-time pre-service clinical 

experience, or its equivalent, and provides either pedagogical coursework or assistance in the provision 

of such coursework; and

(ii) Provides supervision and support services to teachers, or assists in the provision of services 

to teachers, such as—

(A) Identifying and making available information on effective teaching skills or strategies;
8

(B) Identifying and making available information on effective practices in the supervision and 

coaching of novice teachers; and

(C) Mentoring focused on developing effective teaching skills and strategies;

(2) Provides a two-year program that—

(i) Is acceptable for full credit in a baccalaureate teacher preparation program of study offered 

by an institution described in paragraph (1) of this definition, as demonstrated by the institutions; or

(ii) Is acceptable for full credit in a baccalaureate degree program in a high-need field at an 

institution described in paragraph (3) of this definition, as demonstrated by the institutions;

(3) Offers a baccalaureate degree that, in combination with other training or experience, will 

prepare an individual to teach in a high-need field as defined in this part and has entered into an 

agreement with an institution described in paragraphs (1) or (4) of this definition to provide courses 

necessary for its students to begin a career in teaching; or

(4) Provides a post-baccalaureate program of study.

TEACH Grant-eligible program: An eligible program, as defined in 34 CFR 668.8, is a program of 

study at a TEACH Grant eligible institution that is designed to prepare an individual to teach as a highlyqualified teacher in a high-need field and leads to a baccalaureate or master's degree, or is a postbaccalaureate program of study. A two-year program of study that is acceptable for full credit toward a 

baccalaureate degree is considered to be a program of study that leads to a baccalaureate degree.

Teacher: A person who provides direct classroom teaching or classroom-type teaching in a nonclassroom setting, including special education teachers and reading specialists.

Teacher preparation program: A State-approved course of study, the completion of which 

signifies that an enrollee has met all the State's educational or training requirements for initial 

certification or licensure to teach in the State's elementary or secondary schools. A teacher preparation 

program may be a regular program or an alternative route to certification, as defined by the State. For 

purposes of a TEACH Grant, the program must be provided by an institution of higher education.

Teacher Shortage Area Nationwide Listing (Nationwide List): A list of teacher shortage areas in 

each State as defined under 34 CFR 682.210(q)(8)(vii). 

(Authority: 20 U.S.C. 1070g, et seq.)

[73 35495, June 23, 2008, as amended at 75 FR 66968, Oct. 29, 2010]
9

§686.3 Duration of student eligibility.

§686.4 Institutional participation.

§686.5 Enrollment status for students taking regular and correspondence courses.

§686.6 Payment from more than one institution.

Subpart B—Application Procedures

§686.10 Application.

(a) To receive a grant under this part, a student must—

(1a) Complete and submit an approved signed application, as designated by the Secretary. A 

copy of this application is not acceptable;Free Application for Federal Student Aid (FAFSA) in accordance 

with the instructions in the FAFSA; 

(2b) Complete and sign an agreement to serve and promise toor repay in accordance with 

§686.12; and

(3c) Provide any additional information and assurances requested by the Secretary.

(b) The student must submit an application to the Secretary by—

(1) Sending the completed application to the Secretary; or

(2) Providing the application, signed by all appropriate family members, to and the institution

which the student attends or plans to attend so that the institution can transmit the application 

information to the Secretary electronically.

(c) The student must provide the address of his or her residence.

(d) For each award year, the Secretary, through publication in the FEDERAL REGISTER, establishes 

deadline dates for submitting to the Department the application and additional information and for 

making corrections to the information provided.

(Authority: 20 U.S.C. 1070g, et seq.)

§686.11 Eligibility to receive a grant.

(a) Undergraduate, post-baccalaureate, and graduate students. (1) Except as provided in 

paragraph (b) of this section, a student who meets the requirements of 34 CFR part 668, subpart C, is 

eligible to receive a TEACH Grant if the student—
10

(i) Has submitted a completedmet the application; requirements in §686.10; 

(ii) Has signed an agreement to serve as required under §686.12;

(iii(ii) Is enrolled in a TEACH Grant-eligible institution in a TEACH Grant-eligible program;

(iviii) Is completing coursework and other requirements necessary to begin a career in teaching 

or plans to complete such coursework and requirements prior to graduating; and

(viv) Has—

(A) If the student is in the first year of a program of undergraduate education as determined by 

the institution—

(1) A final cumulative secondary school grade point average (GPA) upon graduation of at least 

3.25 on a 4.0 scale, or the numeric equivalent; or

(2) A cumulative GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent, based on courses 

taken at the institution through the most-recently completed payment period;

(B) If the student is beyond the first year of a program of undergraduate education as 

determined by the institution, a cumulative undergraduate GPA of at least 3.25 on a 4.0 scale, or the 

numeric equivalent, through the most recently completed payment period;

(C) If the student is a graduate student during the first payment period, a cumulative 

undergraduate GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent;

(D) If the student is a graduate student beyond the first payment period, a cumulative graduate 

GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent, through the most-recently completed 

payment period; or

(E) A score above the 75th percentile of scores achieved by all students taking the test during 

the period the student took the test on at least one of the batteries from a nationally-normed 

standardized undergraduate, graduate, or post-baccalaureate admissions test, except that such test may 

not include a placement test.

(2)(i) An institution must document the student's secondary school GPA under 

§686.11(a)(1)(v)(A) using—

(A) Documentation provided directly to the institution by the cognizant authority; or

(B) Documentation from the cognizant authority provided by the student.

(ii) A cognizant authority includes, but is not limited to—
11

(A) An LEA;

(B) An SEA or other State agency; or

(C) A public or private secondary school.

(iii) A home-schooled student's parent or guardian is the cognizant authority for purposes of 

providing the documentation of a home-schooled student's secondary school GPA.

(iv) If an institution has reason to believe the documentation provided by a student under 

paragraph (a)(2)(i)(B) of this section is inaccurate or incomplete, the institution must confirm the 

student's grades by using documentation provided directly to the institution by the cognizant authority.

(b) Current or former teachers or retirees. A student who has submitted a completedmet the

application requirements in §686.10 and meets the requirements of 34 CFR part 668, subpart C, is 

eligible to receive a TEACH Grant if the student—

(1) Has signed an agreement to serve or repay as required under §686.12;

(2) Is a current teacher or retiree who is applying for a grant to obtain a master's degree or is or 

was a teacher who is pursuing certification through a high-quality alternative certification route; and

(3) Is enrolled in a TEACH Grant-eligible institution in a TEACH Grant-eligible program during the 

period required for the completion of a master's degree.

(c) Transfer students. If a student transfers from one institution to the current institution and 

does not qualify under §686.11(a)(1)(v)(E), the current institution must determine that student's 

eligibility for a TEACH Grant for the first payment period using either the method described in paragraph 

(c)(1) of this section or the method described in paragraph (c)(2) of this section, whichever method 

coincides with the current institution's academic policy. For an eligible student who transfers to an 

institution that—

(1) Does not incorporate grades from coursework that it accepts on transfer into the student's 

GPA at the current institution, the current institution, for the courses accepted upon transfer—

(i) Must calculate the student's GPA for the first payment period of enrollment using the grades 

earned by the student in the coursework from any prior postsecondary institution that it accepts; and

(ii) Must, for all subsequent payment periods, apply its academic policy and not incorporate the 

grades from the coursework that it accepts on transfer into the GPA at the current institution; or

(2) Incorporates grades from the coursework that it accepts on transfer into the student's GPA 

at the current institution, the current institution must use the grades assigned to the coursework 

accepted by the current institution as the student's cumulative GPA to determine eligibility for the first 
12

payment period of enrollment and all subsequent payment periods in accordance with its academic 

policy.

(Authority: 20 U.S.C. 1070g, et seq.)

§686.12 Agreement to serve or repay.

(a) General. A student who meets the eligibility requirements in §686.11 may receive a TEACH 

Grant only after he or she signs an agreement to serve or repay the grant as a loan provided by the 

Secretary and receives counseling in accordance with §686.32.

(b) Contents of the agreement to serve or repay. The agreement providesto serve or repay—

(1) Provides that, for each TEACH Grant-eligible program for which the student received TEACH 

Grant funds, the grant recipient must fulfill a service obligation by performing creditable teaching 

service by serving—

(1) Serving as(i) As a full-time teacher for a total of not less than four elementary or secondary 

academic years within eight calendar years after completing the program or otherwise ceasing date the 

recipient ceased to be enrolled inat the program for whichinstitution where the recipient received the 

TEACH Grant—, or in the case of a student who receives a TEACH Grant at one institution and 

subsequently transfers to another institution and enrolls in another TEACH Grant-eligible program, 

within eight years of ceasing enrollment at the other institution;

(iii) In a low-income school; as defined in §686.2(d) and subject to the requirements under 

§686.40(a)(3);

(iiiii) As a highly-qualified teacher; as defined in §686.2(d); and

(iiiiv) In a high-need field in the majority of classes taught during each elementary and secondary 

academic year.

(2) Submitting(2) Requires the grant recipient to submit, upon completion of each year of 

service, documentation of the service in the form of a certification by a chief administrative officer of 

the school; and

(3) Complying(3) Explains that the eight-year period for completing the service obligation does 

not include periods of suspension in accordance with §686.41;

(4)(i) Explains the conditions under which a TEACH Grant may be converted to a Direct 

Unsubsidized Loan, as described in §686.43;

(ii) Explains that, if a TEACH Grant is converted to a Direct Unsubsidized Loan, the grant recipient 

must repay the loan in full, with interest charged from the date of each TEACH Grant disbursement; and
13

(iii) Explains that to avoid further accrual of interest as described in paragraph (b)(4)(ii) of this 

section, a grant recipient who decides not to teach in a qualified school or field, or who for any other 

reason no longer intends to satisfy the service obligation, may request that the Secretary convert his or 

her TEACH Grant to a Direct Unsubsidized Loan so that the grant recipient may begin repaying 

immediately, instead of waiting for the TEACH Grant to be converted to a loan under the condition 

described in §686.43(a)(1)(ii); and 

(5) Requires the grant recipient to comply with the terms, conditions, and other requirements 

consistent with §§686.40-686.43 that the Secretary determines to be necessary.

(c) Completion of more than onethe service obligation. (1) A grant recipient must complete aone

service obligation for each program of study for which he or she received all TEACH Grants. received for 

undergraduate study and one service obligation for all TEACH Grants received for graduate study. Each

service obligation begins following the completion or other cessation ofwhen the grant recipient ceases

enrollment by the studentat the institution where the TEACH Grants were received, or, in the case of a 

grant recipient who receives a TEACH Grant-eligible program for which the student received TEACH 

Grant funds at one institution and subsequently transfers to another institution, within eight years from 

the date the grant recipient ceases enrollment at the other institution. However, creditable teaching

service, a suspension approved under §686.41(a)(2), or a military discharge granted under §686.42(c)(2) 

may apply to more than one service obligation.

(2(2) Unless paragraph (c)(3) of this section applies--

(i) In the case of a TEACH Grant recipient who withdraws from an institution before completing 

a baccalaureate or post-baccalaureate program of study for which he or she received TEACH Grants, but 

later re-enrolls at the same institution or at a different institution in either the same baccalaureate or

post-baccalaureate program or in a different TEACH Grant-eligible baccalaureate or post-baccalaureate 

program prior to the date that his or her TEACH Grants are converted to Direct Unsubsidized Loans 

under §686.43(a)(1)(ii) and receives additional TEACH Grants or the Secretary otherwise confirms that 

the grant recipient has re-enrolled in a TEACH Grant-eligible program, the Secretary adjusts the starting 

date of the period for completing the service obligation to begin when the grant recipient ceases to be 

enrolled at the institution where he or she has re-enrolled; and

(ii) In the case of a TEACH Grant recipient who withdraws from an institution before completing 

a master’s degree program of study for which he or she received TEACH Grants, but later re-enrolls at 

the same institution or at a different institution in either the same master’s degree program or in a 

different TEACH Grant eligible master’s degree program prior to the date that his or her TEACH Grants 

are converted to Direct Unsubsidized Loans under §686.43(a)(1)(ii) and receives additional TEACH 

Grants or the Secretary otherwise confirms that the grant recipient has re-enrolled in a TEACH Granteligible program, the Secretary adjusts the starting date of the period for completing the service 
14

obligation to begin when the grant recipient ceases to be enrolled at the institution where he or she has 

re-enrolled. 

(3) In the case of a TEACH Grant recipient covered under paragraph (c)(2)(i) or (ii) of this section 

who completed one or more complete academic years of creditable teaching service as described in 

§686.12(b) during the period between the grant recipient’s withdrawal and re-enrollment—

(i) The Secretary does not adjust the starting date of the period for completing the service 

obligation unless requested by the recipient;

(ii) The completed teaching service counts toward satisfaction of the grant recipient’s service 

obligation under paragraph (c)(2)(i) of this section; and

(iii) If the grant recipient continues to perform creditable teaching service after re-enrolling in a 

TEACH Grant-eligible program, the grant recipient may receive credit toward satisfaction of the service 

obligation for any complete academic years of creditable teaching performed while the recipient is 

concurrently enrolled in the TEACH Grant-eligible program only if the recipient does not request and 

receive a temporary suspension of the period for completing the service obligation under 

§686.41(a)(1)(i).

(4) A grant recipient may request a suspension, in accordance with §686.41, of the eight-year 

time period in paragraph (b)(1) of this section.

(d) Majoring and serving Teaching in a high-need field. A grant recipient who completes a TEACH 

Grant-eligible program in a field that is listed in the Nationwide List cannot satisfy his or her. In order for 

a grant recipient’s teaching service obligation to teach in thata high-need field unless listed in the 

Nationwide List to count toward satisfying the recipient’s service obligation, the high-need field in which 

he or she has prepared to teach ismust be listed in the Nationwide List for the State in which the grant 

recipient teaches—

(1) At the time the grant recipient begins teaching atin that field, even if that field subsequently 

loses its high-need designation for that State; or

(2) For teaching service performed on or after July 1, 2010—

(i) At the time the grant recipient begins teaching in that field., even if that field subsequently 

loses its high-need designation for that State; or

(ii) At the time the grant recipient signed the agreement to serve or repay or received the TEACH 

Grant, even if that field subsequently loses its high-need designation for that State before the grant 

recipient begins teaching in that field. 
15

(e) Repayment for failure to complete service obligation. If a grant recipient fails or refuses to 

carry out the required service obligation described in paragraph (b) of this section, the TEACH Grants 

received by the recipient must be repaid and will be treated as a Federal Direct Unsubsidized Loan, with 

interest accruing from the date of each TEACH Grant disbursement, in accordance with applicable 

sections of subpart B of 34 CFR part 685.

(Authority: 20 U.S.C. 1070g, et seq.)

[73 35495, June 23, 2008, as amended at 74 FR 55950, Oct. 29, 2009]

Subpart C—Determination of Awards

§686.20 Submission process and deadline for a SAR or ISIR.

§686.21 Calculation of a grant.

(a)(1)(i) The Scheduled Award for a TEACH Grant for an eligible student is $4,000.

(ii) Each Scheduled Award remains available to an eligible student until the $4,000 is disbursed.

(2)(i) The aggregatetotal amount that a student may receive in TEACH Grants for undergraduate 

and post-baccalaureate study may not exceed $16,000.

(ii) The aggregatetotal amount that a student may receive in TEACH Grants for a master's 

degreegraduate study may not exceed $8,000.

(b) The annual award for—

(1) A full-time student is $4,000;

(2) A three-quarter-time student is $3,000;

(3) A half-time student is $2,000; and

(4) A less-than-half-time student is $1,000.

(c) Except as provided in paragraph (d) of this section, the amount of a student's grant under 

this part, in combination with the other student financial assistance available to the student, including 

the amount of a Federal Pell Grant for which the student is eligible, may not exceed the student's cost of 

attendance at the TEACH Grant-eligible institution. Other student financial assistance is estimated 

financial assistance, as defined in 34 CFR 673.5(c).

(d) A TEACH Grant may replace a student's EFC, but the amount of the grant that exceeds the 

student's EFC is considered estimated financial assistance, as defined in 34 CFR 673.5(c).
16

(e) In determining a student's payment for a payment period, an institution must include—

(1) In accordance with 34 CFR 668.20, any noncredit or reduced credit courses that an institution 

determines are necessary—

(i) To help a student be prepared for the pursuit of a first undergraduate baccalaureate or postbaccalaureate degree or certificate; or

(ii) In the case of English language instruction, to enable the student to utilize already existing 

knowledge, training, or skills; and

(2) In accordance with 34 CFR 668.5, a student's participation in a program of study abroad if it 

is approved for credit by the home institution at which the student is enrolled.

(Authority: 20 U.S.C. 1070g, et seq.)

§686.22 Calculation of a grant for a payment period.

§686.23 Calculation of a grant for a payment period that occurs in two award years.

§686.24 Transfer student: attendance at more than one institution during an award year.

§686.25 Correspondence study.

Subpart D—Administration of Grant Payments

§686.30 Scope.

§686.31 Determination of eligibility for payment and cancellation of a TEACH Grant.

...

(a) For each payment period, an institution may pay a grant under this part to an eligible student 

only after it determines that the student—

(1) Is eligible under §686.11;

(2) Has completed the relevant initial or subsequent counseling as required in §686.32;

(3) Has signed an agreement to serve as described in §686.12;

(4) Is enrolled in a TEACH Grant-eligible program; and

(5) If enrolled in a credit-hour program without terms or a clock-hour program, has completed 

the payment period, as defined in 34 CFR 668.4, for which he or she has been paid a grant.
17

(b)(1) If an institution determines at the beginning of a payment period that a student is not 

maintaining satisfactory progress, but changes that determination before the end of the payment 

period, the institution may pay a TEACH Grant to the student for the entire payment period.

(2) If an institution determines at the beginning of a payment period that a student enrolled in a 

TEACH Grant-eligible program is not maintaining the required GPA for a TEACH Grant under §686.11 or 

is not pursuing a career in teaching, but changes that determination before the end of the payment 

period, the institution may pay a TEACH Grant to the student for the entire payment period.

(c) If an institution determines at the beginning of a payment period that a student is not 

maintaining satisfactory progress or the necessary GPA for a TEACH Grant under §686.11 or is not 

pursuing a career in teaching, but changes that determination after the end of the payment period, the 

institution may not pay the student a TEACH Grant for that payment period or make adjustments in 

subsequent payments to compensate for the loss of aid for that period.

(d) An institution may make one disbursement for a payment period to an otherwise eligible 

student if—

(1)(i) The student's final high school GPA is not yet available; or

(ii) The student's cumulative GPA through the prior payment period under §686.11 is not yet 

available; and

(2) The institution assumes liability for any overpayment if the student fails to meet the required 

GPA to qualify for the disbursement.

(e)(1) In accordance with 34 CFR 668.165, before disbursing a TEACH Grant for any award year, 

an institution must—

(i) Notify the student of the amount of TEACH Grant funds that the student is eligible to receive, 

how and when those funds will be disbursed, and the student's right to cancel all or a portion of the 

TEACH Grant; and

(ii) Return the TEACH Grant proceeds, cancel the TEACH Grant, or both, if the institution 

receives a TEACH Grant cancellation request from the student by the later of the first day of a payment 

period or 14 days after the date it notifies the student of his or her right to cancel all or a portion of a 

TEACH Grant.

(2)(i) If a student requests cancellation of a TEACH Grant after the period of time in paragraph 

(e)(1)(ii) of this section, but within 120 days of the TEACH Grant disbursement date, the institution may 

return the TEACH Grant proceeds, cancel the TEACH Grant, or do both.
18

(ii) If the institution does not return the TEACH Grant proceeds, or cancel the TEACH Grant, the 

institution must notify the student that he or she may contact the Secretary to request that the TEACH 

Grant be converted to a Federal Direct Unsubsidized Loan.

(Authority: 20 U.S.C. 1070g, et seq.)

§686.32 Counseling requirements.

(a) Initial counseling. (1) An institution must ensure that initial counseling is conducted with 

each TEACH Grant recipient prior to making the first disbursement of the grant.

(2) The initial counseling must be in person, by audiovisual presentation, or by interactive 

electronic means. In each case, the institution must ensure that an individual with expertise in title IV, 

HEA programs is reasonably available shortly after the counseling to answer the student's questions. As 

an alternative, in the case of a student enrolled in a correspondence program of study or a study-abroad 

program of study approved for credit at the home institution, the student may be provided with written 

counseling materials before the grant is disbursed.

(3) The initial counseling must—

(i) Explain the terms and conditions of the TEACH Grant agreement to serve or repay as 

described in §686.12;

(ii) Provide the studentgrant recipient with information about how to identify low-income 

schools and documented high-need fields;

(iii) Inform the grant recipient that, in order for the teaching to count towards the recipient's 

service obligation, the high-need field in which he or she has prepared to teach must be—

(A) One of the six high-need fields listed in §686.2; or

(B) A high-need field that is listed in the Nationwide List at the time and for the State in which 

the grant recipient teaches—

(1) At the time the grant recipient begins teaching in that field., even if that field subsequently 

loses its high-need designation for that State; or 

 (2) For teaching service performed on or after July 1, 2010, at the time the grant recipient 

signed the agreement to serve or repay or received the TEACH Grant, even if that field subsequently 

loses its high-need designation for that State before the grant recipient begins teaching in that field. 

(iv) Inform the grant recipient of the opportunity to request a suspension of the eight-year 

period for completion of the agreement to serve or repay and the conditions under which a suspension 

may be granted in accordance with §686.41;
19

(v) Explain to the studentgrant recipient that conditions, such as conviction of a felony, could 

preclude the student from completing the service obligation;

(vi) Emphasize to the studentgrant recipient that if the studentgrant recipient fails or refuses to 

complete the service obligation contained in the agreement to serve or repay or any other condition of 

the agreement to serve or repay—

(A) The TEACH Grant must be repaid as a Federal Direct Unsubsidized Loan; and

(B) The TEACH Grantgrant recipient will be obligated to repay the full amount of each grant and 

the accrued interest from each disbursement date;

(vii) Explain the circumstances, as described in §686.43, under which a TEACH Grant will be 

converted to a Federal Direct Unsubsidized Loan; 

(viii) Explain that—

(A) To avoid further accrual of interest as described in §686.12(b)(4)(ii) of this section, a grant 

recipient who decides not to teach in a qualified school or field, or who for any other reason no longer 

intends to satisfy the service obligation, may request that the Secretary convert his or her TEACH Grant 

to a Direct Unsubsidized Loan that the grant recipient may begin repaying immediately, instead of 

waiting for the TEACH Grant to be converted to a loan under the condition described in §686.43(a)(1)(ii); 

and

(B) If the grant recipient requests that the TEACH Grant be converted to a Direct Unsubsidized 

Loan in accordance with §686.43(a)(1)(i), the conversion of the TEACH Grant to a loan cannot be 

reversed;

(ix) Emphasize that, once a TEACH Grant is converted to a Federal Direct Unsubsidized Loan, it 

cannotmay be reconverted to a grant; only if—

(ix(A) The Secretary determines that the grant was converted to a loan in error; or 

(B) In the case of a grant recipient whose TEACH Grant was converted to a Direct Unsubsidized 

Loan in accordance with §686.43(a)(1)(ii), within one year of the conversion date the grant recipient 

provides documentation showing that he or she is satisfying the service obligation within the eight-year 

service obligation period;

(x) Review for the grant recipient information on the availability of the Department's Student 

Loan Ombudsman's office;

(xxi) Describe the likely consequences of loan default, including adverse credit reports, 

garnishment of wages, Federal offset, and litigation; and
20

(xixii) Inform the studentgrant recipient of sample monthly repayment amounts based on a 

range of student loan indebtedness.

(b) Subsequent counseling. (1) If a student receives more than one TEACH Grant, the institution 

must ensure that the student receives additional counseling prior to the first disbursement of each 

subsequent TEACH Grant award.

(2) Subsequent counseling may be in person, by audiovisual presentation, or by interactive 

electronic means. In each case, the institution must ensure that an individual with expertise in title IV, 

HEA programs is reasonably available shortly after the counseling to answer the student's questions. As 

an alternative, in the case of a student enrolled in a correspondence program of study or a study-abroad 

program of study approved for credit at the home institution, the student may be provided with written 

counseling materials before the grant is disbursed.

(3) Subsequent counseling must—

(i) Review the terms and conditions of the TEACH Grant agreement to serve or repay as 

described in §686.12;

(ii) Emphasize to the studentgrant recipient that if the studentgrant recipient fails or refuses to 

complete the service obligation contained in the agreement to serve or repay or any other condition of 

the agreement to serve or repay—

(A) The TEACH Grant must be repaid as a Federal Direct Unsubsidized Loan; and

(B) The TEACH Grantgrant recipient will be obligated to repay the full amount of the grant and 

the accrued interest from the disbursement date;

(iii) Explain the circumstances, as described in §686.34, under which a TEACH Grant will be 

converted to a Federal Direct Unsubsidized Loan;

(iv) Explain that—

(A) To avoid further accrual of interest as described in §686.12(b)(4)(ii) of this section, a grant 

recipient who decides not to teach in a qualified school or field, or who for any other reason no longer 

intends to satisfy the service obligation, may request that the Secretary convert his or her TEACH Grant 

to a Direct Unsubsidized Loan that the grant recipient may begin repaying immediately, instead of 

waiting for the TEACH Grant to be converted to a loan under the condition described in §686.43(a)(1)(ii); 

and

(B) If the grant recipient requests that the TEACH Grant be converted to a Direct Unsubsidized 

Loan in accordance with §686.43(a)(1)(i), the conversion of the TEACH Grant to a loan cannot be 

reversed;
21

(v) Emphasize that, once a TEACH Grant is converted to a Federal Direct Unsubsidized Loan, it 

cannotmay be reconverted to a grant; and only if—

(v(A) The Secretary determines that the grant was converted to a loan in error; or

(B) In the case of a grant recipient whose TEACH Grant was converted to a Direct Unsubsidized 

Loan in accordance with §686.43(a)(1)(ii), within one year of the conversion date the grant recipient 

provides documentation showing that he or she is satisfying the service obligation within the eight-year 

service obligation period; and

(vi) Review for the grant recipient information on the availability of the Department's Student 

Loan Ombudsman's office.

(c) Exit counseling. (1) An institution must ensure that exit counseling is conducted with each 

grant recipient before he or she ceases to attend the institution at a time determined by the institution.

(2) The exit counseling must be in person, by audiovisual presentation, or by interactive 

electronic means. In each case, the institution must ensure that an individual with expertise in title IV, 

HEA programs is reasonably available shortly after the counseling to answer the grant recipient's 

questions. As an alternative, in the case of a grant recipient enrolled in a correspondence program of 

study or a study-abroad program of study approved for credit at the home institution, the grant 

recipient may be provided with written counseling materials within 30 days after he or she completes 

the TEACH Grant-eligible program.

(3) Within 30 days of learning that a grant recipient has withdrawn from the institution without 

the institution's knowledge, or from a TEACH Grant-eligible program, or failed to complete exit 

counseling as required, exit counseling must be provided either in-person, through interactive electronic 

means, or by mailing written counseling materials to the grant recipient's last known address.

(4) The exit counseling must—

(i) InformReview the terms and conditions of the TEACH Grant agreement to serve or repay as 

described in §686.12 and emphasize to the grant recipient ofthat the four-year service obligation that 

must be completed within the first eight calendar years after completing-year period described in

§686.12;

(ii) Explain the treatment of a grant recipient who withdraws from and then reenrolls in a TEACH 

Grant-eligible program at a TEACH Grant eligible institution as described in accordance with §686.12;(c);
22

(iiiii) Inform the grant recipient of the opportunity to request a suspension of the eight-year 

period for completion of the service obligation and the conditions under which a suspension may be 

granted in accordance with §686.41;

(iiiiv) Provide the grant recipient with information about how to identify low-income schools and 

documented high-need fields;

(ivv) Inform the grant recipient that, in order for the teaching to count towards the recipient's 

service obligation, the high-need field in which he or she has prepared to teach must be—

(A) One of the six high-need fields listed in §686.2; or

(B) A high-need field that is listed in the Nationwide List at the time and for the State in which 

the grant recipient teaches—

(1) At the time the grant recipient begins teaching in that field., even if that field subsequently 

loses its high-need designation for that State; or 

(v) Explain that 2) For teaching service performed on or after July 1, 2010, at the time the grant 

recipient will be requiredsigned the agreement to submit to the Secretary each year written 

documentation of his or her status as a highly-qualified teacher in a high-need field at a low-income

schoolserve or of hisrepay or her intent to complete the four-year service obligation untilreceived the 

dateTEACH Grant, even if that field subsequently loses its high-need designation for that the service 

obligation has been met or the date that State before the grant becomes a Federal recipient begins 

teaching in that field;

(vi) Emphasize to the grant recipient that if the grant recipient fails or refuses to complete the 

service obligation contained in the agreement to serve or repay or fails to meet any other condition of 

the agreement to serve or repay—

(A) The TEACH Grant must be repaid as a Direct Unsubsidized Loan, whichever occurs first;; and

 

(vi(B) The grant recipient will be obligated to repay the full amount of each grant and the 

accrued interest from each disbursement date;

(vii) Explain to the grant recipient that the Secretary will, at least annually during the service 

obligation period, send the recipient the notice described in §686.43(a)(2); 

(viii) Explain the circumstances, as described in §686.43, under which a TEACH Grant will be 

converted to a Federal Direct Unsubsidized Loan;

(vii(ix) Explain that—
23

(A) To avoid further accrual of interest as described in §686.12(b)(4)(ii), a grant recipient who 

decides not to teach in a qualified school or field, or who for any other reason no longer intends to 

satisfy the service obligation, may request that the Secretary convert his or her TEACH Grant to a Direct 

Unsubsidized Loan that the grant recipient may begin repaying immediately, instead of waiting for the 

TEACH Grant to be converted to a loan under the condition described in §686.43(a)(1)(ii); and

(B) If the grant recipient requests that the TEACH Grant be converted to a Direct Unsubsidized 

Loan in accordance with §686.43(a)(1)(i), the conversion of the TEACH Grant to a loan cannot be 

reversed;

(x) Emphasize that once a TEACH Grant is converted to a Federal Direct Unsubsidized Loan it 

cannotmay be reconverted to a grant;

(viii) Inform the grant recipient of the average anticipated monthly repayment amount based on 

a range of student loan indebtedness only if the TEACH Grants convert to a Federal Direct Unsubsidized 

Loan;—

(ix) Review for A) The Secretary determines that the grant recipient available repayment options 

ifwas converted to a loan in error; or

(B) In the case of a grant recipient whose TEACH Grant convertswas converted to a Federal

Direct Unsubsidized Loan, including in accordance with §686.43(a)(1)(ii), within one year of the standard 

repayment, extended repayment, graduated repayment, income-contingent and income-based 

repayment plans, and loan consolidation;conversion date the grant recipient provides documentation 

showing that he or she is satisfying the service obligation within the eight-year service obligation period; 

and

(x) Suggest debt-management strategies to the grant recipient that would facilitate repayment if 

the TEACH Grant converts to a Federal Direct Unsubsidized Loan;

(xi) Explain to the grant recipient how to contact the Secretary;.

(xii) Describe the likely consequences of loan default, including adverse credit reports, 

garnishment of wages, Federal offset, and litigation;

(xiii) Review for the grant recipient the conditions under which he or she may defer or forbear 

repayment, obtain a full or partial discharge, or receive teacher loan forgiveness if the TEACH Grant 

converts to a Federal Direct Unsubsidized Loan;

(xiv) Review for the grant recipient information on the availability of the Department's Student 

Loan Ombudsman's office; and
24

(xv) Inform the grant recipient of the availability of title IV loan information in the National 

Student Loan Data System (NSLDS).

(5) If exit counseling is conducted through interactive electronic means, an institution must take 

reasonable steps to ensure that each grant recipient receives the counseling materials and participates 

in and completes the exit counseling.

(d) Compliance. The institution must maintain documentation substantiating the institution's 

compliance with §686.32(a) through (c) of this section for each TEACH Grant recipient.

(e) Conversion counseling. (1) At the time a TEACH Grant recipient’s TEACH Grant is converted to 

a Direct Unsubsidized Loan, the Secretary conducts conversion counseling with the recipient by 

interactive electronic means and by mailing written counseling materials to the most recent address 

provided by the recipient. 

(2) The conversion counseling—

(i) Informs the borrower of the average anticipated monthly repayment amount based on the 

borrower's indebtedness;

(ii) Reviews for the borrower available repayment plan options, including standard, graduated, 

extended, income-contingent, and income-based repayment plans, including a description of the 

different features of each plan and the difference in interest paid and total payments under each plan; 

(iii) Explains to the borrower the options to prepay each loan, to pay each loan on a shorter 

schedule, and to change repayment plans; 

(iv) Provides information on the effects of loan consolidation including, at a minimum—

(A) The effects of consolidation on total interest to be paid, and length of repayment; 

(B) The effects of consolidation on a borrower's underlying loan benefits, including grace 

periods, loan forgiveness, cancellation, and deferment opportunities; and 

(C) The options of the borrower to prepay the loan and to change repayment plans; 

(v) Includes debt-management strategies that are designed to facilitate repayment; 

(vi) Explains to the borrower the availability of Public Service Loan Forgiveness and teacher loan 

forgiveness; 

(vii) Explains how the borrower may request reconsideration of the conversion of the TEACH 

Grant to a Direct Unsubsidized Loan if the borrower believes that the grant was converted to a loan in 

error; 
25

(viii) Describes the likely consequences of default, including adverse credit reports, delinquent 

debt collection procedures under Federal law, and litigation; 

(ix) Informs the borrower of the grace period as described in §686.43(c);

(x) Provides—

(A) A general description of the terms and conditions under which a borrower may obtain full or 

partial forgiveness or discharge of the loan (including under the Public Service Loan Forgiveness 

Program), defer repayment of the loan, or be granted a forbearance on repayment of the loan; and 

(B) A copy, either in print or by electronic means, of the information the Secretary makes 

available pursuant to section 485(d) of the HEA; 

(xi) Requires the borrower to provide current information concerning name, address, social 

security number, and driver's license number and State of issuance, as well as the borrower's 

permanent address; 

(xii) Reviews for the borrower information on the availability of the Student Loan Ombudsman's 

office; 

(xiii) Informs the borrower of the availability of title IV loan information in the National Student 

Loan Data System (NSLDS) and how NSLDS can be used to obtain title IV loan status information; 

(xiv) Provides a general description of the types of tax benefits that may be available to 

borrowers; and 

(xv) Informs the borrower of the amount of interest that has accrued on the converted TEACH 

Grants and explains that any unpaid interest will be capitalized at the end of the grace period. 

(Authority: 20 U.S.C. 1070g, et seq.)
26

§686.33 Frequency of payment.

§686.34 Liability for and recovery of TEACH Grant overpayments.

§686.35 Recalculation of TEACH Grant award amounts.

§686.36 Fiscal control and fund accounting procedures.

§686.37 Institutional reporting requirements.

§686.38 Maintenance and retention of records.

Subpart E—Service and Repayment Obligations

§686.40 Documenting the service obligation.

(a) Except as provided in §§686.41 and 686.42, within 120 days of completing or otherwise ceasing 

enrollment in a program of study for which a TEACH Grant was received, the grant recipient must 

confirm to the Secretary in writing that—

(1) He or she is employed as a full-time teacher in accordance with the terms and conditions of the 

agreement to serve described in §686.12; or

(2) He or she is not yet employed as a full-time teacher but intends to meet the terms and 

conditions of the agreement to serve described in §686.12.

(b(a) If a grant recipient is performing full-time teaching service in accordance with the 

agreement to serve or repay, or agreements to serve or repay if more than one agreement exists, the 

grant recipient must, upon completion of each of the four required elementary or secondary academic 

years of teaching service, provide to the Secretary documentation of that teaching service on a form 

approved by the Secretary and certified by the chief administrative officer of the school or educational 

service agency in which the grant recipient is teaching. The documentation must show that the grant 

recipient is teaching—

(1) Taught full-time in a low-income school. as a highly-qualified teacher as defined in §686.2(d); 

and 

(2)(i) Taught a majority of classes during the period being certified in any of the high-need fields 

of mathematics, science, a foreign language, bilingual education, English language acquisition, special 

education, or as a reading specialist; or

(ii) Taught a majority of classes during the period being certified in another high-need field 

designated by that State and listed in the Nationwide List, in accordance with §686.12(d). 
27

(3) If the school or educational service agency at which the grant recipient is employed meets 

the requirements of a low-income school in the first year of the grant recipient's four elementary or 

secondary academic years of teaching and the school or educational service agency fails to meet those 

requirements in subsequent years, those subsequent years of teaching qualify for purposes of this 

section for that recipient.satisfying the service obligation described in §686.12(b).

(c)(1) In addition to the documentation requirements in paragraph (b) of this section, the 

documentation must show that the grant recipient—

(i) Taught a majority of classes during the period being certified in any of the high-need fields of 

mathematics, science, a foreign language, bilingual education, English language acquisition, special 

education, or as a reading specialist; or

(ii) Taught a majority of classes during the period being certified in a State in another high-need 

field designated by that State and listed in the Nationwide List, except that teaching service does not

satisfy the requirements of the agreement to serve if that teaching service is in a geographic region of a 

State or in a specific grade level not associated with a high-need field of a State designated in the 

Nationwide List as having a shortage of elementary or secondary school teachers.

(2) If a grant recipient begins qualified full-time teaching service in a State in a high-need field 

designated by that State and listed in the Nationwide List and in subsequent years that high-need field is 

no longer designated by the State in the Nationwide List, the grant recipient will be considered to 

continue to perform qualified full-time teaching service in a high-need field of that State and to continue 

to fulfill the service obligation.

(d) Documentation must also provide evidence that the grant recipient is a highly-qualified 

teacher.

(e(b) For purposes of completing the service obligation, the elementary or secondary academic 

year may be counted as one of the grant recipient's four complete elementary or secondary academic 

years if the grant recipient completes at least one-half of the elementary or secondary academic year 

and the grant recipient's school employer considers the grant recipient to have fulfilled his or her 

contract requirements for the elementary or secondary academic year for the purposes of salary 

increases, tenure, and retirement if the grant recipient is unable to complete an elementary or 

secondary academic year due to—

(1) A condition that is a qualifying reason for leave under the Family and Medical Leave Act of 

1993 (FMLA) (29 U.S.C. 2612(a)(1) and (3)); or

(2) A call or order to Federal or State active duty status for more than 30 days, or Active Service

as a member of a reserve componentReserve Component of the Armed Forces named in 10 U.S.C. 
28

10101, or service as a member of the National Guard on full-time National Guard duty, as defined in 10 

U.S.C. 101(d)(5), under a call to active service in connection with a war, military operation, or a national 

emergency.); or

(f3) Residing in or being employed in a federally declared major disaster area as defined in the 

Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).

(c) A grant recipient who taught in more than one qualifying school or qualifying educational 

service agency during an elementary or secondary academic year and demonstrates that the combined 

teaching service was the equivalent of full-time, as supported by the certification of one or more of the 

chief administrative officers of the schools or educational service agencies involved, is considered to 

have completed one elementary or secondary academic year of qualifying teaching.

(Authority: 20 U.S.C. 1070g, et seq.)

§686.41 Periods of suspension.

(a)(1) A grant recipient who has completed or who has otherwise ceased enrollment in a TEACH 

Grant-eligible program for which he or she received TEACH Grant funds may request a suspension from 

the Secretary of the eight-year period for completion of the service obligation based on—

(i) Enrollment in a program of study for which the recipient would be eligible for a TEACH Grant 

or in a program of study that has been determined by a State to satisfy the requirements for 

certification or licensure to teach in the State's elementary or secondary schools;

(ii) Receiving State-required instruction or otherwise fulfilling requirements for licensure to 

teach in a State’s elementary or secondary schools;

(iii) A condition that is a qualifying reason for leave under the FMLA; or

(iiiiv) A call or order to Federal or State active duty status for more than 30 days, or Active 

Service as a member of a reserve componentReserve Component of the Armed Forces named in 10 

U.S.C. 10101, or service as a member of the National Guard on full-time National Guard duty, as defined 

in 10 U.S.C. 101(d)(5), under a call to active service in connection with a war, military operation, or a 

national emergency.);

(v) Military orders for the recipient’s spouse for—

(A) Deployment with a military unit or as an individual in support of a call to Federal or State 

Active Duty, or Active Service; or

(B) A change of permanent duty station from a location in the continental United States to a 

location outside of the continental United States or from a location in a state to any location outside of 

that state; or
29

(vi) Residing in or being employed in a federally declared major disaster area as defined in the 

Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).

(2) A grant recipient may receive a suspension described in paragraphs (a)(1)(i), (ii), and (iii)

through (vi) of this section in one-year increments that—

(i) Does not exceed a combined total of three years under both paragraphs (a)(1)(i)), (ii), and 

(iiiii) of this section; or

(ii) Does not exceed a total of three years under paragraph (a)(1)(iv) of this section; 

(iii) Does not exceed a total of three years under paragraph (a)(1)(v) of this section; or

(iv) Does not exceed a total of three years under paragraph (a)(1)(vi) of this section.

(b) A grant recipient, or his or her representative in the case of a grant recipient who qualifies 

under paragraph (a)(1)(iiiiv) or (vi) of this section, must apply for a suspension in writing on a form 

approved by the Secretary, prior to being subject to any of the conditions under §686.43(a)(1) through 

(a)(5) that would cause the TEACH Grant to convert to a Federal Direct Unsubsidized Loan.

(c) A grant recipient, or his or her representative in the case of a grant recipient who qualifies 

under paragraph (a)(1)(iiiiv) or(vi) of this section, must provide the Secretary with documentation 

supporting the suspension request as well as current contact information including home address and 

telephone number.

(Approved by the Office of Management and Budget under control number 1845-0083)

(d) On a case-by-case basis, the Secretary may grant a temporary suspension of the period for 

completing the service obligation if the Secretary determines that a grant recipient was unable to 

complete a full academic year of teaching or begin the next academic year of teaching due to 

exceptional circumstances significantly affecting the operation of the school or educational service 

agency where a grant recipient was employed or the grant recipient’s ability to teach. 

(e) The Secretary notifies the grant recipient regarding the outcome of the application for 

suspension.

(Authority: 20 U.S.C. 1070g, et seq.)

[73 35495, June 23, 2008, as amended at 74 FR 55950, Oct. 29, 2009]

§686.42 Discharge of agreement to serve or repay.

(a) Death. (1) If a grant recipient dies, the Secretary discharges the obligation to complete the 

agreement to serve or repay based on—
30

(i) An original or certified copy of the death certificate;

(ii) An accurate and complete photocopy of the original or certified copy of the death certificate;

(iii) An accurate and complete original or certified copy of the death certificate that is scanned 

and submitted electronically or sent by facsimile transmission; or

(iv) Verification of the grant recipient's death through an authoritative Federal or State 

electronic database approved for use by the Secretary.

(2) Under exceptional circumstances and on a case-by-case basis, the Secretary discharges the 

obligation to complete the agreement to serve or repay based on other reliable documentation of the 

grant recipient's death that is acceptable to the Secretary.

(b) Total and permanent disability. (1) A grant recipient's agreement to serve or repay is 

discharged if the recipient becomes totally and permanently disabled, as defined in 34 CFR 

682.200685.102(b), and the grant recipient applies for and satisfies the eligibility requirements for a 

total and permanent disability discharge in accordance with 34 CFR 685.213.

(2) The eight-year time period in which the grant recipient must complete the service obligation 

remains in effect during the conditional discharge period described in 34 CFR 685.213(c)(2) unless the 

grant recipient is eligible for a suspension based on a condition that is a qualifying reason for leave 

under the FMLA in accordance with §686.41(a)(1)(ii)(D).

(3) Interest continues to accrue on each TEACH Grant disbursement unless and until the TEACH 

Grant recipient's agreement to serve is discharged.

(4) If the grant recipient satisfies the criteria for a total and permanent disability discharge during 

and at the end of the three-year conditional discharge period, the Secretary discharges the grant 

recipient's service obligation.

(5) If, If at any time during or at the end of the three-year conditional discharge period, the 

Secretary determines that the grant recipient does not meet the eligibility criteria for a total and 

permanent disability requirements of the three-year period following the discharge, as described in 34 

CFR 685.213(b)(7), the Secretary ends the conditional discharge period andwill notify the grant recipient 

is once again subjectthat the grant recipient’s obligation to satisfy the terms of the agreement to serve

or repay is reinstated.

(3) The Secretary's notification under paragraph (b)(2) of this section will—

(i) Include the reason or reasons for reinstatement;
31

(ii) Provide information on how the grant recipient may contact the Secretary if the grant 

recipient has questions about the reinstatement or believes that the agreement to serve or repay was 

reinstated based on incorrect information; and 

(iii) Inform the TEACH Grant recipient that he or she must satisfy the service obligation within 

the portion of the eight-year period that remained after the date of the discharge. 

(4) If the TEACH Grant made to a recipient whose TEACH Grant agreement to serve or repay is 

reinstated is later converted to a Direct Unsubsidized Loan, the recipient will not be required to pay 

interest that accrued on the TEACH Grant disbursements from the date the agreement to serve or repay 

was discharged until the date the agreement to serve or repay was reinstated.

(c) Military discharge. (1) A grant recipient who has completed or who has otherwise ceased 

enrollment in a TEACH Grant-eligible program for which he or she received TEACH Grant funds and has 

exceeded the period of time allowed under §686.41(a)(2)(ii), may qualify for a proportional discharge of 

his or her service obligation due to an extended call or order to active duty status. To apply for a military 

discharge, a grant recipient or his or her representative must submit a written request to the Secretary.

(2) A grant recipient described in paragraph (c)(1) of this section may receive a—

(i) One-year discharge of his or her service obligation if a call or order to active duty status is for 

more than three years;

(ii) Two-year discharge of his or her service obligation if a call or order to active duty status is for 

more than four years;

(iii) Three-year discharge of his or her service obligation if a call or order to active duty status is 

for more than five years; or

(iv) Full discharge of his or her service obligation if a call or order to active duty status is for 

more than six years.

(3) A grant recipient or his or her representative must provide the Secretary with—

(i) A written statement from the grant recipient's commanding or personnel officer certifying—

(A) That the grant recipient is on active duty in the Armed Forces of the United States;

(B) The date on which the grant recipient's service began; and

(C) The date on which the grant recipient's service is expected to end; or

(ii)(A) A copy of the grant recipient's official military orders; and

(B) A copy of the grant recipient's military identification.
32

(4) For the purpose of this section, the Armed Forces means the Army, Navy, Air Force, Marine 

Corps, and the Coastthe Coast Guard, a reserve component of the Armed Forces named in 10 U.S.C. 

10101, or the National Guard.

(5) Based on a request for a military discharge from the grant recipient or his or her 

representative, the Secretary will notify the grant recipient or his or her representative of the outcome 

of the discharge request. For the portion on the service obligation that remains, the grant recipient 

remains responsible for fulfilling his or her service obligation in accordance with §686.12.

(Approved by the Office of Management and Budget under control number 1845-0083)

(Authority: 20 U.S.C. 1070g, et seq.)

[73 FR 35495, June 23, 2008, as amended at 74 FR 55950, Oct. 29, 2009; 81 FR 76089, Nov. 1, 2016]

§686.43 Obligation to repay the grant.

(a)(1) The TEACH Grant amounts disbursed to the recipient will be converted into a Federal

Direct Unsubsidized Loan, with interest accruing from the date that each grant disbursement was made 

and be collected by the Secretary in accordance with the relevant provisions of subpart A of 34 CFR part 

685 if—

(1i) The grant recipient, regardless of enrollment status, requests that the TEACH Grant be 

converted into a Federal Direct Unsubsidized Loan because he or she has decided not to teach in a 

qualified school or fieldeducational service agency, or not to teach in a high-need field, or for any other 

reason; or

(2) Within 120 days of ceasing enrollment in the institution prior to completing the TEACH Granteligible program, the grant recipient has failed to notify the Secretary in accordance with §686.40(a);

(3) Within one year of ceasing enrollment in the institution prior to completing the TEACH Granteligible program, the grant recipient has not—

(i) Been determined eligible for a suspension of the eight-year period for completion of the service 

obligation as provided in §686.41;

(ii) Re-enrolled in a TEACH Grant-eligible program; or

(iii) Begun creditable teaching service as described in §686.12(b);

(4) The grant recipient completes the course of study for which a TEACH Grant was received and 

does not actively confirm to the Secretary, at least annually, his or her intention to satisfy the 

agreement to serve; or
33

(5) The grant recipient has completed the TEACH Grant-eligible program but has failed to begin 

or maintain qualified employment within the timeframe that would allow that individual to complete 

the service obligation within the number of years required under §686.12.

(2) At least annually during the service obligation period under §686.12, the Secretary notifies 

the grant recipient of—

(i) The terms and conditions that the grant recipient must meet to satisfy the service obligation;

(ii) The requirement for the grant recipient to provide to the Secretary, upon completion of each 

of the four required elementary or secondary academic years of teaching service, documentation of that 

teaching service on a form approved by the Secretary and certified by the chief administrative officer of 

the school or educational service agency in which the grant recipient taught and emphasize the 

necessity to keep copies of this information and copies of the recipient’s own employment 

documentation; 

(iii) The service years completed and the remaining timeframe within which the grant recipient 

must complete the service obligation;

(iv) The conditions under which the grant recipient may request a temporary suspension of the 

period for completing the service obligation; 

(v) The conditions as described under §686.43 (a)(1) under which the TEACH Grant amounts 

disbursed to the recipient will be converted into a Direct Unsubsidized Loan; 

(vi) The potential total interest accrued; 

(vii) The process by which the recipient may contact the Secretary to request reconsideration of 

the conversion, the deadline by which the grant recipient must submit the request for reconsideration, 

and a list of the specific documentation required by the Secretary to reconsider the conversion; and 

(viii) An explanation that to avoid further accrual of interest as described in §686.12(b)(4)(ii), a 

grant recipient who decides not to teach in a qualified school or field, or who for any other reason no 

longer intends to satisfy the service obligation, may request that the Secretary convert his or her TEACH 

Grant to a Direct Unsubsidized Loan that the grant recipient may begin repaying immediately, instead of 

waiting for the TEACH Grant to be converted to a loan under the condition described in §686.43(a)(1)(ii). 

(3) On or about 90 days before the date that a grant recipient’s TEACH Grants would be 

converted to Direct Unsubsidized Loans in accordance with paragraph (a)(1)(ii) of this section, the 

Secretary notifies the grant recipient of the date by which the recipient must submit documentation 

showing that the recipient is satisfying the obligation.
34

(4) If the TEACH Grant amounts disbursed to a recipient are converted to a Direct Unsubsidized 

Loan, the Secretary notifies the recipient of the conversion and offers conversion counseling as defined 

in §686.32(e).

(5) If a grant recipient’s TEACH Grant was converted to a Direct Unsubsidized Loan in accordance 

with paragraph (a)(1)(ii) of this section, the Secretary will reconvert the loan to a TEACH Grant if, within 

one year of the conversion date, the recipient provides the Secretary with documentation showing that 

he or she is satisfying the service obligation.

(6) If any grant recipient who requests reconsideration demonstrates to the satisfaction of the 

Secretary that a TEACH Grant was converted to a loan in error, the Secretary—

(i) Reconverts the loan to a TEACH Grant and—

(A) If the grant recipient completed one or more academic years of qualifying teaching service 

during the period between the date the grant recipient submitted the reconsideration request and the 

date the Secretary determined that the grant was converted to a loan in error, applies that teaching 

service toward the grant recipient’s four-year service obligation requirement; or

(B) If the grant recipient did not complete any academic years of qualifying teaching service 

during the period between the date the grant recipient submitted the reconsideration request and the 

date the Secretary determined that the grant was converted to a loan in error, excludes that period 

from the eight-year period during which the grant recipient must complete the service obligation.

(ii) Ensures that the grant recipient receives credit for any payments that were made on the 

Direct Unsubsidized Loan that was reconverted to a TEACH Grant; 

(iii) Notifies the recipient of the reconversion to a grant and explains that the recipient is once 

again responsible for meeting all requirements of the service obligation under §686.12; and

(iv) Requests deletion of any derogatory information reported to consumer reporting agencies 

related to the grant while it was in loan status and, upon a request from the grant recipient, furnishes a 

statement of error that the recipient may provide to creditors until the recipient’s credit history has 

been corrected. 

(7) If a grant recipient who requests reconsideration does not demonstrate to the satisfaction of 

the Secretary that a TEACH Grant was converted to a loan in error, the Secretary—

(i) Notifies the recipient that the loan cannot be converted to a TEACH Grant;

(ii) Explains the reason or reasons why the loan cannot be converted to a TEACH Grant; and

(iii) Explains how the recipient may contact the Federal Student Aid Ombudsman if he or she 

continues to believe that the TEACH Grant was converted to a loan in error. 
35

(8) A TEACH Grant recipient remains obligated to meet all requirements of the service obligation 

under §686.12, even if the recipient does not receive the notices from the Secretary as described in 

paragraph (a)(2) of this section. 

(b) A TEACH Grant that converts to a loan, and is treated as a Federal Direct Unsubsidized Loan, 

is not counted against the grant recipient's annual or any aggregate Stafford Loan limits.

(c) A grant recipient whose TEACH Grant has been converted to a Federal Direct Unsubsidized 

Loan—

(1) Enters a six-month grace period prior to entering repayment, and

(2) Is eligible for all of the benefits of the Direct Loan Program, including an in-school deferment.

(d) A TEACH Grant that is converted to a Federal Direct Unsubsidized Loan cannot be 

reconvertedconverted to a grant, unless the Secretary determines that the grant was converted to a 

loan in error.

(Authority: 20 U.S.C. 1070g, et seq.)