Student Loan Forgiveness for Teachers

More than 60% of full-time public school teachers have taken out student loans to fund their education, according to the Learning Policy Institute. If you’re among them, there are options available that could ease the burden of your federal student loan debt.

Programs such as Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness (TLF) are specifically created to support educators, depending on their teaching role and years of service. As private student loans don’t qualify for federal student loan forgiveness, there are still alternative strategies to manage and reduce that debt.

Here’s a complete guide to understanding how student loan forgiveness works for teachers.

Teachers with federal student loans may qualify for student loan forgiveness through two major programs: Teacher Loan Forgiveness (TLF) and Public Service Loan Forgiveness (PSLF). As both provide loan forgiveness, they have separate qualifications and timelines.

TLF offers partial loan forgiveness after five years of full-time teaching at a low-income school. On the other hand, PSLF clears your remaining loan balance after 10 years of public service, available to teachers employed at government or nonprofit schools.

It’s important to note that the same service years can’t be used for both programs. If you use five years to meet TLF requirements, those years won’t count toward PSLF. However, with different periods of qualifying service, you may still be eligible for both programs.

The Teacher Loan Forgiveness program offers eligible teachers either $5,000 or $17,500 in student loan forgiveness, depending on your subject area. To qualify, you must work full-time for five consecutive years at a low-income school or educational service agency listed in the Teacher Cancellation Low-Income (TCLI) Directory.

Teachers who specialize in secondary math, science, or special education may qualify for the full $17,500 in loan forgiveness. Those teaching other subjects may be eligible for up to $5,000.

You may also want to look at Teacher Loan Forgiveness Forbearance if you want to apply for TLF. With this option, you can stop receiving monthly payments for the years that you qualify for service, but interest will still be charged. It is only accessible if the amount of debt forgiveness you qualify for is less than or equal to your current loan balance.

Public Service Loan Forgiveness is a broader student loan forgiveness option that clears the remaining balance on federal Direct Loans after 120 qualifying payments. These payments are typically made over 10 years while working full-time for an eligible nonprofit or government employer. The payments don’t need to be made consecutively to count.

Qualifying employers include all levels of government such as federal, state, local, or tribal, as well as non-profit organizations that hold tax-exempt status under Section 501(c)(3).

To make payments more affordable, you can enroll in an income-driven repayment (IDR) plan. These plans base your monthly payments on your income and family size, making it easier to stay on track toward loan forgiveness.

While working toward PSLF, you’ll need to submit an Employment Certification Form annually or whenever you change employers. Once you’ve completed the 120 required payments, you can apply for forgiveness of your remaining loan balance.

This is one of the most impactful Loan Forgiveness Programs for Teachers working in public service.

Not every teacher is eligible for loan forgiveness. It’s important to understand the specific requirements tied to each program before applying. Here’s a breakdown of who qualifies for Teacher Loan Forgiveness (TLF) and Public Service Loan Forgiveness (PSLF).

Who Qualifies for Teacher Loan Forgiveness (TLF)?

To be considered for the Teacher Loan Forgiveness program, you need to meet these key conditions:

• You must have worked as a full-time teacher for five straight academic years, with at least one of those years occurring after the 1997-98 school year.
• Your service must be at an eligible elementary or secondary school, or with an educational service agency that serves students from low-income families.
• Your loan must have been disbursed before you completed the five years of required service.
  
  

Even if you didn’t work the full academic year, you may still qualify if:

• You taught for at least half of the school year.
• Your school or agency recognizes your work as complete for that year.
• You left due to pursuing further education, qualifying medical leave under the Family and Medical Leave Act, or being called to active military duty for over 30 days.

For those aiming for the maximum forgiveness amount of $17,500, you must be a highly qualified full-time teacher in secondary-level mathematics, science, or special education. Special education teachers must have taught students with disabilities that match their field of training and proven expertise in the subject matter.

Teachers in other subjects may still qualify for up to $5,000 in loan forgiveness if they are recognized as highly qualified and have worked full-time at the elementary or secondary level.

Who Qualifies for Public Service Loan Forgiveness (PSLF)?

PSLF offers student loan forgiveness to a broader group of educators and public service workers.  Most full-time staff members working at nonprofit public or private schools will generally meet the employment criteria.

To be eligible for PSLF, you need to:

• Work full-time (at least 30 hours per week) for a qualifying employer, which includes U.S. federal, state, local, or tribal government entities or nonprofit organizations.
• Have federal Direct Loans or consolidate other federal student loans into a Direct Consolidation Loan.
• Make your monthly payments under a qualifying repayment plan, such as an income-driven repayment plan or the 10-year Standard Repayment Plan.
• Complete 120 qualifying monthly payments, which usually takes about 10 years of consistent, on-time payments.

Here’s a quick method to apply for teacher loan forgiveness if that’s your goal.

Applying for Teacher Loan Forgiveness (TLF)

After completing the required years of teaching at an eligible school, you can submit a Teacher Loan Forgiveness application through your loan servicer. If you have loans managed by different servicers, remember to send a separate application to each one. You’ll likely need the assistance of your school’s chief administrative officer to complete and verify the application properly.

Applying for Public Service Loan Forgiveness (PSLF)

Start by enrolling in an income-driven repayment plan and ensure that every payment you make is on time and for the full amount; late or partial payments won’t count toward forgiveness.

Use the PSLF Help Tool to submit a PSLF form annually and whenever you switch employers. After processing, your qualifying payments will be updated in your Federal Student Aid dashboard, helping you track your progress toward the 120-payment goal.

After making 120 qualifying payments, apply for student loan forgiveness through your loan servicer and the Department of Education.

Many U.S. states provide their own teacher student debt forgiveness programs in addition to federal initiatives like Teacher debt Forgiveness (TLF) and Public Service Loan Forgiveness (PSLF) to assist teachers who teach essential courses or work in high-need areas.

These state-based student loan forgiveness programs often provide additional relief for public school teachers who meet specific qualifications, such as teaching in underserved districts or specializing in subjects like math, science, or special education.

California – The Assumption Program of Loans for Education (APLE) offers up to $19,000 in loan forgiveness for teachers who commit to teaching in designated subject areas or shortage schools.

Texas – The Math and Science Scholars Loan Repayment Program provides up to $10,000 for eligible public school teachers who teach math or science at the secondary level.

New York – The NY State Teacher Loan Forgiveness Program awards up to $5,000 annually (up to five years) for certified teachers working in shortage areas.

Illinois – Through the Illinois Teachers Loan Repayment Program, educators who qualify for the federal TLF program may receive up to $5,000 in additional state loan repayment benefits.

Georgia – The Georgia Student Finance Authority offers repayment assistance for educators in specific teaching fields or high-need schools.

Each state has unique eligibility criteria, including service location, subject area, and years of employment. To qualify, you often need to be licensed and commit to teaching full-time for a minimum number of years in an approved setting.

There are still a number of methods to make debt payments easier if you are not eligible for teacher student loan forgiveness. The following choices are worth looking into: 

Income-Driven Repayment Plans

Income-driven repayment (IDR) plans, which modify your loan payment amount according to your family size and wages, might be helpful when monthly loan payments appear excessive. Monthly bills are frequently reduced as a consequence. After 10 to 25 years of regular payments, any leftover loan debt may be forgiven, depending on the particular plan.

State Loan Repayment Assistance Programs

Many states offer loan repayment assistance programs designed for teachers. Unlike federal forgiveness options, some state programs may also help pay off private student loans. For instance, teachers in Texas might be eligible for the Math and Science Scholars Loan Repayment Program, which provides up to $10,000 in repayment aid for public school educators in those subjects. Check with your state’s department of education to learn what programs are available where you teach.

Perkins Loan Cancellation

Teaching full-time at a low-income school or in high-need subjects like math, science, special education, or foreign languages may be eligible for full debt cancellation if you have Perkins Loans. Eligibility may extend to educators at nonprofit private institutions that satisfy state education requirements. 

Refinancing Student Loans

Refinancing student loans can help lower your interest rate and reduce the total cost of your loans. You might also extend your repayment term to make monthly payments more affordable. However, be careful when refinancing federal loans into private ones, as doing so can mean losing access to federal benefits like student loan forgiveness and income-driven repayment plans, which are especially valuable for teachers.

Teachers’ ability to manage their educational debt can be greatly impacted by their ability to navigate student loan forgiveness choices. There are workable methods to lessen your debt load, regardless of whether you are eligible for federal programs like Teacher debt Forgiveness or Public Service Loan Forgiveness or look into alternatives like income-driven repayment plans and state help. 

Making a difference in the classroom is what really counts, and staying aware of your alternatives and being proactive will help you concentrate more on that. Examining student loan forgiveness programs might be the secret to both financial comfort and career peace of mind if you’re a teacher with outstanding debt.