5 student loan forgiveness programs for teachers

Teachers who borrow student loans take out an average of $55,800 to fund their education, according to a report from the National Education Association. Compare that to an average starting salary of $41,163, as noted by the same report, and you can begin to see the problem. 

But there’s good news: A student loan forgiveness program for teachers could help you get rid of part or even all of your educational debt in one fell swoop.

1. Public Service Loan Forgiveness

Best for: Teachers with high student debt who work at public schools or non-profit organizations

The Public Service Loan Forgiveness (PSLF) program is open to federal student loan borrowers who work in public service full-time (at least 30 hours a week). Any teacher is eligible as long as you work for a qualifying organization, such as a public school or non-profit school. Only Direct Loans are eligible for PSLF, but FFEL or Perkins Loans can become eligible by consolidating them with a Direct Consolidation Loan. 

To reach forgiveness through PSLF, you need to make 120 monthly payments (10 years worth of payments) on an income-driven repayment plan. Once you’ve completed the required payments, your remaining student loan balance gets forgiven.

2. Teacher Loan Forgiveness

Best for: Elementary and secondary school teachers at low-income schools with low outstanding debt 

The Teacher Loan Forgiveness program offers federal student debt cancellation to qualifying teachers after five consecutive years of service — at least one year of service must have been after the 1997-98 school year. This program requires you to be a full-time teacher at an eligible low-income school or educational service agency. It forgives Direct Loans or federal Stafford loans, but PLUS and Perkins loans aren't eligible. 

Highly qualified special education teachers and high school math or science teachers can receive the full $17,500 in forgiveness. Elementary school teachers and secondary school teachers in other subjects can receive up to $5,000 in loan forgiveness. 

If your student loan balance is lower than the amount of forgiveness you’ll receive, you can also pause payments through Teacher Loan Forgiveness forbearance during your five years of teaching. If your balance is greater, however, you won’t qualify for this type of forbearance.s forgiven.

3. Perkins Loan cancellation for teachers

Best for: Teachers with federal Perkins Loans who work at low-income schools or teach certain subjects

While the Perkins Loan program closed in 2017, you may still owe on a Perkins Loan if you borrowed before that time. You could get up to 100% of your Perkins debt forgiven if you teach in a low-income school or teach an eligible subject, such as math, science, foreign languages, or bilingual or special education. Private school teachers can qualify if their school is a nonprofit.

This program offers partial cancellation for each year of service. Specifically, you could get:

• 15% of your loan canceled each year for your first and second year of service
• 20% of your loan canceled for the third and four years
• 30% canceled for your fifth year

4. State-based teacher loan repayment

Best for: Teachers who work in high-need areas as defined by their state

Many states also offer loan repayment assistance programs to qualifying educators. These programs are usually geared towards teachers working in critical shortage areas, and you’ll often need to commit to a certain number of years of service in order to receive funds. Here are a few examples:

• Minnesota’s Teacher Shortage Loan Repayment: This program provides up to $5,000 to teachers who work in a shortage area or rural school district or belong to an underrepresented racial or ethnic group. 
• Teach for Texas Loan Repayment Assistance: Texas will provide up to $2,500 per year for five years to educators in critical-shortage teaching fields or communities. 
• California’s Assumption Program of Loans for Education: If you teach math, science, or special education in a critical teacher shortage area of California, you may receive up to $19,000 in loan repayment assistance. 

The amount of loan repayment can vary by program. Some states offer a fixed amount per year, while others cover a percentage of your total outstanding student loan balance. In most cases, you’ll be able to use the repayment funds to pay off both federal and private student loans. 

5. TEACH Grant

Best for: Current undergraduate or graduate students working towards a career in teaching 

While not technically a form of forgiveness, the federal TEACH Grant can help current students pay for their teaching coursework and certification. If you’re enrolled in an eligible program and meet academic requirements, you could receive up to $4,000 annually.

In exchange for the grant, you must agree to complete four years of teaching a high-need subject at a low-income school. High-need fields include math, science, foreign language, special education, and bilingual education. Your service must be completed within eight years of graduating. If you don’t fulfill your service agreement, any grant money you received will be converted into a Direct Unsubsidized Loan. You’ll have to repay the amount in full, plus interest.

What if I qualify for multiple forgiveness programs? 

You can qualify for more than one teacher forgiveness program, but each year employment can usually only be counted toward one program. For instance, you could spend five years teaching to earn forgiveness under the Teacher Loan Forgiveness program and then an additional 10 years to qualify for PSLF, but your first five years can’t be counted toward both programs.

“Pursuing Teacher Loan Forgiveness first might be a good option for people who are unsure whether they want to pursue a career in teaching,” said financial aid expert Mark Kantrowitz. “Otherwise, teachers who are dedicated to their profession might want to pursue just PSLF, to get forgiveness of the remaining balance sooner.”

How to maximize teacher forgiveness benefits

Student loan forgiveness programs don’t cancel your loans overnight. You’ll need to work for several years to qualify for forgiveness, as well as make sure you meet all the eligibility requirements of the program.

To maximize your teacher forgiveness benefits, make on-time payments on your student loans while you’re teaching, and maintain detailed employment records along the way. Stay informed about any updates or changes to programs that could affect your progress.

As mentioned, teachers with qualifying loan balances can also use Teacher Loan Forgiveness forbearance to pause payments. If this applies to you, you won’t have to make payments on your loans for five years — though interest will still accrue. Once you complete the service requirements, you can get your balance forgiven (up to $5,000 or $17,500, depending on your subject).

Alternatives to teacher loan forgiveness

Pursuing student loan forgiveness for teachers isn’t the only way to manage your debt. Here are other strategies to consider:

• Apply for income-driven repayment. Income-driven repayment (IDR) plans adjust your monthly payments to a percentage of your discretionary income while extending your loan terms to 20 or 25 years. If you still owe a balance at the end of your repayment term, the government will forgive the rest.
• Pause payments through deferment or forbearance. If you can’t afford to pay your student loans at all, you may qualify for a deferment or forbearance. Keep in mind, though, that interest often continues to accrue during this period of paused payments, causing your balance to grow. For that reason, this is best saved as a short-term solution.
• Refinance your student loans for better rates. Teachers with good credit may be able to reduce their interest rates through refinancing. This process also adjusts your monthly payments and lets you choose new terms.It does come with a potential downside, though — refinancing federal student loans turns them private, so they’d no longer be eligible for federal forgiveness programs, repayment plans, or other protections. It wouldn’t make sense to refinance federal student loans if you’re relying on any of these benefits now or plan to in the future.