Students must obtain a teaching position at a school serving low-income students including any elementary or secondary school that is listed in the Department of Education's Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. High need subject areas are defined as follows:
In the event that a student is unable to fulfill the teaching service requirements, the student must be aware that there are serious financial consequences. If a TEACH grant is disbursed to a student, but the student later does not fulfill the reaching service requirements, the amount of money awarded as a TEACH grant becomes a loan to be repaid with interest (at the same rate as the federal Unsubsidized Stafford Loan), and the interest is compounded from the time the grant was initially disbursed. (Note: once a grant is converted into a loan, the recipient will be given a six-month grace period prior to entering into repayment of this loan.) Once a grant has been converted to a loan, it cannot revert back to a grant. Students must file an annual certification of their status to prove their teaching service requirements are being fulfilled.