Student Loan Forgiveness For Teaching
The decision to enter the teaching profession is an important one. Not only is it a difficult job with long hours and low pay, but you also get to work with the next generation of citizens. And while many people agree that teachers are underpaid, they often forget that they can receive some special benefits as well. In this post, we will discuss the various types of student loan forgiveness for teachers and how to qualify for each type.
The TEACH Grant
The TEACH Grant is a grant available to students who plan to teach in low-income schools. The grant, which stands for Teacher Education Assistance for College and Higher Education, is not need based and allows you to use the money however you want (including paying off student loans). You can receive up to $4,000 per year while in school and $16,000 over two years after you graduate.
Perkins Loan Forgiveness Program for Teachers
- You must teach full-time at a low-income school.
- You must be an elementary or secondary school teacher, including special education teachers.
- Your Federal Perkins Loan must be in good standing (not in default). If you are not sure if your loan is eligible, contact the loan servicer handling your loans and ask them to check their records for any outstanding balance on your account. You can also visit www.nslds.ed.gov/nslds_SA/index for more information about student loans and repayment options available to you as well as links to national companies that provide services for student debt management and consolidation, collection of past due payments from salary offset accounts, and other assistance with federal student loans.
Federal Teacher Loan Forgiveness
If you have a federal student loan and are a full-time teacher at an eligible school, you may be eligible for the Federal Teacher Loan Forgiveness program. This program forgives the remaining debt on your federal student loans after five consecutive years of service as a full-time teacher at an eligible school.
Federal Student Loans only include Stafford Loans, GradPLUS Loans and Parent PLUS Loans. Direct Consolidation Loans do not qualify for this program, but if you consolidate your loans into one direct consolidation loan before taking out any more federal loans (or becoming employed), it will count towards the five year requirement.
PSLF Public Service Loan Forgiveness
The Public Service Loan Forgiveness (PSLF) program offers forgiveness for student loans to borrowers who work full-time in public service professions, such as teaching.
To qualify for PSLF, you must make 120 qualifying monthly payments on your loans while working full-time in qualifying public service jobs. Qualifying payments are those made after October 1, 2007 and before October 1, 2023. You can make any type of payment on your federal student loans during this time period—including special repayment plans or interest-only payments—to count toward eligibility for the program’s benefits.
Under PSLF, eligible borrowers are forgiven the remaining balance on their federal Direct Loans after they have made all 120 qualifying monthly payments (or 240 payments if they consolidated into a single loan). The amount forgiven is tax free as long as it doesn’t exceed $17,500 per year over 10 years ($350K total), which means that if you’re approved for PSLF today and work at a qualifying job until 2023 with no gaps between employment periods (like maternity leave), then any debt remaining after graduation could be forgiven up to $350k!
Teaching is an important profession
Teaching is an important profession. Teachers shape the future, and they do so on a daily basis, in their own classrooms, helping to mold young minds (and sometimes even older ones). If you’re considering teaching as a career, it would benefit you to know that there are several loan forgiveness programs available specifically for teachers who decide to go into public service. This can include teachers in private schools or non-profits as well as those working at public schools and colleges/universities.
In addition to loans being forgiven if you teach full-time in a low wealth community for five years after graduating from your school program (or ten years if you attend a more expensive school), there are also some other great incentives for pursuing this rewarding career path:
- You get paid decent money while doing important work! The median salary for teachers is around $57K per year right now and doesn’t vary much by location or experience level–people who have been teaching longer tend to make more than those who just started out though;
- You’ll get free housing! Depending on where your new job is located (this varies wildly depending on which state or city) there may be affordable housing options available within walking distance of both school grounds and other local amenities;
Teaching is a noble profession, and it’s important to show teachers you support them. That’s why there are so many programs out there designed specifically for teachers. The best thing about these programs is that they don’t require any extra work on your part! Just keep doing what you’re doing now, and your student loans will be forgiven after a few years of teaching.