Credible takeaways
- Eligible teachers can take advantage of several loan forgiveness programs offered by the government and state.
- If you have federal Direct Loans, Public Service Loan Forgiveness may be the fastest path to loan cancellation.
- Consider Teacher Loan Forgiveness if you don’t have a large amount of federal debt and want to get forgiveness quicker.
- Check your state’s Department of Education website to find state-based forgiveness programs for teachers.
Teaching can be a rewarding career, but many teachers face the challenge of repaying student loans. In fact, the Learning Policy Institute reports that about 1.3 million U.S. teachers are still managing student debt, with average monthly payments reaching up to $342.
This financial strain can be overwhelming, but fortunately forgiveness programs are available to help you pay off your debt faster. Depending on your job, years of service, and loan type, you have several teacher loan forgiveness options to explore.
1. Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness (PSLF) program is one of the most generous federal teacher loan forgiveness options, offering forgiveness with no maximum cap.
PSLF is available to teachers with federal Direct Loans who work at not-for-profit schools. Most public and private elementary, secondary schools, and colleges are not-for-profit and qualify for PSLF.
To reach forgiveness, teachers must make 120 qualifying monthly payments while working full-time for an eligible employer. After meeting these requirements, the remaining balance on their Direct Loans is completely forgiven, tax-free.
- Best for: Teachers with high student loan debt
- Who qualifies: Teachers who work full-time at public or not-for-profit schools or government agencies for at least 10 years
- Forgiveness amount: Any remaining balance on your eligible federal loans after making 120 qualifying payments
- How to apply: Use the PSLF Help Tool to submit your application and certify your employment each year.
2. Teacher Loan Forgiveness
The federal Teacher Loan Forgiveness (TLF) program requires highly-qualified teachers to work five consecutive, full-time years at a low-income school or educational service agency. To be considered "highly qualified," you need at least a bachelor's degree and a full state teaching certification that wasn’t issued under emergency, temporary, or provisional conditions.
Only Direct Loans or Federal Family Education Loans (FFEL) are eligible for forgiveness through TLF. If you teach secondary-school level math, science, or special education at a primary or secondary school, you may receive up to $17,500 in loan forgiveness. Teachers in other subjects can receive up to $5,000 in loan forgiveness.
- Best for: Teachers with low loan balances
- Who qualifies: Teachers who work for five consecutive years in a low-income school or service agency. At least one of these years must have been after the 1997-98 academic year.
- Forgiveness amount: Up to $17,500
- How to apply: Submit the Teacher Loan Forgiveness Application to your loan servicer after your five consecutive years of service.
3. Perkins loan cancellation
Although the federal Perkins Loan program ended in September 2017, you might still have a lingering Perkins Loan balance. The Perkins Loan Cancellation program is accessible to eligible preschool, pre-kindergarten, elementary and secondary school teachers, as well as special education teachers.
This program offers up to 100% loan cancellation, distributed incrementally over five years. You can receive cancellation for 15% of your loan in years one and two of service, 20% in years three and four, and 30% in year five.
- Best for: Teachers with Perkins Loans
- Who qualifies: Preschool, pre-kindergarten, elementary and secondary school teachers, and special education teachers with a Perkins Loan.
- Forgiveness amount: Up to 100% of your Perkins Loan amount
- How to apply: Contact the school you attended when you obtained your Perkins Loans.
4. State-sponsored forgiveness
The state where you teach might offer its own teacher loan forgiveness program. Unlike federal programs, many states can help repay or forgive private student loans, too. Contact your state’s department of education to see what relief options are available.
Here are a few examples:
- Texas: The Teach for Texas Loan Repayment Assistance Program (TFTLRAP) offers up to $2,500 in loan forgiveness in exchange for a five-year, full-time service commitment. You must be a certified teacher in critical shortage subjects like bilingual/English as a Second Language (ESL), career and technical education, technology applications and computer science, and special education. You must also have served at least one full-time year at a Texas public school.
- Colorado: The Colorado Department of Higher Education offers Colorado teachers up to $5,000 in loan repayment per eligible year, for up to five years. To qualify, you must be state-licensed, and work at an approved public rural school or district, or shortage area, as a teacher, principal or special service provider. Only federal student loans under the educator’s name qualify for loan forgiveness.
- Illinois: Teachers in Illinois who have already qualified for and received federal TLF might be eligible for a loan forgiveness match through the Illinois Teachers Loan Repayment Program. Participants must be U.S. citizens or eligible non-citizens, Illinois residents, and must have served at least five years at a low-income state school.
Each state’s forgiveness program has different eligibility and service requirements to qualify for loan forgiveness. Weigh your options carefully before committing to a forgiveness program as it might disqualify you from pursuing others.
Check out: 12 Strategies To Pay Off Student Loans Faster
Can I combine forgiveness programs?
You might qualify for multiple teacher loan forgiveness programs and can pursue more than one simultaneously. However, these situations are often nuanced.
Let’s say you have Federal Direct Loans and Perkins Loans. If you avoid consolidating your Perkins Loans through the Direct Consolidation Loan program, you can pursue PSLF for just your Direct Loans, and participate in Perkins Loan Cancellation for your Perkins Loan debt.
In another scenario, you might be eligible for both TLF and PSLF, but you can’t count the same service years for both programs. If you receive TLF loan forgiveness after five consecutive service years, those payments won’t count toward the 120 qualifying payments needed for PSLF.
This means qualifying for forgiveness from both programs would take longer, up to 15 years in total. Depending on your situation, focusing on PSLF might get your entire remaining eligible loan balance forgiven faster.
What if I don’t qualify for teacher loan forgiveness?
If you don't qualify for teacher loan forgiveness and have private student loans, student loan refinancing could be a viable alternative. Refinancing might help you secure a lower interest rate, reducing the overall cost of your loans.
To lower your monthly payments, consider extending your repayment term during refinancing. This will increase the total interest paid over time, but it can make your payments more manageable throughout your teaching career.
However, try to avoid refinancing federal student loans into private loans. Doing so will make you ineligible for federal protections and forgiveness programs, which can be crucial safety nets for managing your debt.
Check out: When Should I Refinance My Student Loans?
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