Loan Forgiveness Programs for Teachers | Learn.org

If you work as a teacher and are worried about paying off your federal student loans, you may be eligible for financial aid to cover the cost of a teaching degree, as well as various loan forgiveness programs that could reduce or erase your student debt. But where do you find these programs, and how do you take advantage of them?

The federal government offers several loan forgiveness programs for teachers, and some states offer similar programs. The programs typically have conditions attached to them. For example, you may have to work full-time at a low-income school for a certain length of time.

Keep reading to find out more about how teachers can get student loan forgiveness.

What Are Loan Forgiveness Programs?

Loan forgiveness programs help borrowers get out of debt more quickly by paying off student loans. Depending on the program, some types of loans that are covered may include subsidized and unsubsidized federal direct loans, like Stafford loans. Some private student loans may also be covered.

The federal government has numerous loan forgiveness programs in place, and almost every state offers at least one forgiveness program. These programs are often specific to certain career paths or subject areas.

Teacher loan forgiveness options are specifically designed to help school teachers pay off their student debt. Highly qualified teachers meeting all eligibility requirements may have up to 100% of their student loan debt erased depending on the program (or programs) they take advantage of.

Best Loan Forgiveness Programs for Teachers

Now that you know a little about student loan forgiveness programs, let's look at some of the programs available for teachers.

1. Public Service Loan Forgiveness (PSLF) for Teachers

The Public Service Loan Forgiveness program applies to professionals in various public service fields, particularly those who work for government agencies and nonprofit organizations. Teachers who work for public schools may qualify for this program.

Eligibility Requirements

To be eligible for this program, you must meet the following Public Service Loan Forgiveness eligibility requirements:

• work for a qualifying employer
• have direct loans or consolidated loans
• work full-time
• have made 120 consecutive monthly payments

How PSLF Works for Teachers

The PSLF program covers the remaining balance of your loans after you have made the minimum number of qualifying payments. Full-time teachers can take advantage of this program if they work for a public school considered a qualifying employer. Teachers are encouraged to follow an income-driven repayment plan to take full advantage of this program.

2. Teacher Loan Forgiveness Program

The Teacher Loan Forgiveness (TLF) Program is designed specifically for teachers. Those meeting basic eligibility requirements can have a portion of their loans paid back after five years of employment.

Those with less than the required experience can apply for TLF forbearance, which allows them to hold off on making loan payments. With this, teachers can save money and maximize the amount of loan forgiveness they receive.

Eligibility Requirements

You must meet the following requirements to take advantage of this program:

• work at an eligible school for five consecutive years
• apply for the program after working five years
• have federal direct or federal Stafford loans

Amount of Forgiveness

Highly qualified special education teachers, as well as those who teach math and science at the secondary school level, can receive up to $17,500 in loan forgiveness. Other teachers receive up to $5,000.

3. Federal Perkins Loan Cancellation

This loan forgiveness program specifically applies to the Federal Perkins Loan. Eligible teachers can receive up to 100% forgiveness through this loan cancellation program.

Eligibility Requirements

To qualify for this program, you must:

• have a Federal Perkins Loan
• teach full-time
• teach at a qualifying low-income public or private school, or
• teach science, mathematics, special education, bilingual education, foreign language, or another subject determined to have a teacher shortage in your area

Cancellation Schedule

The Perkins Loan Forgiveness Program repays your loan in increments over five years. The debt cancellation schedule is as follows:

• 15% during your first and second year
• 20% during your third and fourth year
• 30% during your fifth year

4. State-Specific Teacher Loan Forgiveness Programs

Various states offer loan forgiveness programs for teachers who work within the state. Some states offering these programs include Illinois, Iowa, Texas, and Arizona.

How Do These Programs Work?

Each program available varies from the next, as each state sets its own terms. That said, most state-based loan forgiveness programs require teachers to teach specific subjects or teach low-income students to qualify for the program. Award amounts vary widely, ranging from $2,500 to $30,000.

Eligibility Requirements

Since each program is different, each program has its own eligibility requirements. Some common requirements include:

• teach a subject experiencing teacher shortages
• teach in a low-income school
• receive funding from federal loan forgiveness programs
• teach math, science, or special education
• be in the top 25% of their graduating class

Examples of State Programs

Illinois's Teachers Loan Repayment program provides an extra $5,000 for those already receiving federal aid. Texas offers up to $2,500 to address teacher shortages through its Teach for Texas Loan Repayment Assistance Program. The Alabama Math and Science Teacher Education Program provides $7,500 each year for four years in loan forgiveness to those teaching math and science.

5. Teacher Loan Repayment Assistance Programs (LRAPs)

Loan Repayment Assistance Programs, or LRAPs, are commonly used to help former college students pay back their loans. These programs may be used by teachers, as well as other professionals.

What Are LRAPs?

Loan Repayment Assistance Programs are different from loan forgiveness programs. They are more like scholarships you receive after completing your education; they provide funds to help you pay back your loans.

Eligibility Requirements

Eligibility requirements vary depending on the type and source of the LRAP you receive. Those offered by states, for example, may have different requirements from those offered by schools or employers.

Check with your school, state, and employer to find out if any LRAPs are available to you and what their terms are. You can also check with outside organizations such as My LRAP.

Examples of LRAPs for Teachers

Some states, like Alabama, offer LRAPs specifically designed for teachers. However, in many cases, LRAPs are not career-specific; they may be used regardless of your chosen career path. If your state, school, or employer doesn't offer LRAPs, check with the options available through My LRAP.

How to Maximize Your Loan Forgiveness Opportunities

Considering the various loan forgiveness opportunities available, you may be wondering how to best take advantage of them to reduce or eliminate your student debt. Keep reading for some top tips.

Combine Programs for Maximum Benefit

If you qualify for multiple loan forgiveness programs, you may not have to choose which one to use. Many programs allow you to combine them, using benefits from both to supplement each other.

For example, if one program pays 85% of your remaining loan balance, a second program may cover the remaining 15%. This way, 100% of your loans are repaid with no out-of-pocket cost to you.

Keep Accurate Records

It's important to keep records of the loan payments you have made over time, as well as when you started making payments and the dates when each payment was made. This will help you know exactly how much you owe at any given time.

This can be beneficial when you apply for loan forgiveness programs, as it will help you provide an accurate record of what you owe and may increase your chances of qualifying for the program.

Stay Informed

Understand the eligibility requirements and benefits you can receive from each loan forgiveness program. This way, you won't waste time applying for programs you don't qualify for.

You'll also want to be informed about any teaching service commitments attached to the programs you benefit from. You must keep these commitments to maintain your eligibility for loan forgiveness.