Teachers have the most options (compared to other careers) for student loan forgiveness. That's awesome – but it can also be confusing. With so many programs, and so many requirements, student loan forgiveness for teachers is a complicated subject (get it… subject…sorry, lame teacher joke).
If you're a teacher, you have four main programs/ways to get student loan forgiveness. You also have a secondary avenue for student loan forgiveness based on your repayment plan.
Given that the average teacher only makes around $38,727 based on Payscale, and that the average student loan debt in 2017 is $37,000 according to The College Board, any help that teachers can get is essential.
Let's break down the four main ways to get student loan forgiveness for teachers, what the other options are, and how to get professional help if you want it.
Option 1. Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness (PSLF) is one of the top ways to get student loan forgiveness. This program allows you to get complete Federal student loan forgiveness after 120 qualifying payments.
What's great about this program is that it offers the most options for teachers - you don't have to be at a qualifying Title 1 school. Any teacher at any school counts. In fact, any worker at a school counts (librarian, teacher's aid, principal, janitor, etc.).
There are three major requirements for PSLF:
- Certified Employment For 120 Payments - You can find the employment certification form here.
- Direct Loans - Other loan types (such as FFEL) don't count.
- Qualifying Repayment Plan - The qualifying repayment plans for PSLF are the Standard 10-year plan, IBR, PAYE, RePAYE, ICR, and certain payments made under the graduated plan.
We have a short online training on Public Service Loan Forgiveness if you want more details or want to ensure you remain compliant with the program.
Option 2. Teacher Loan Forgiveness
Teacher Loan Forgiveness is a program that was started before PSLF, and allowed teachers at qualifying schools to have up to $17,500 of your Direct or FFEL loans forgiven after 5 years.
This program has many more stipulations that PSLF, and also forgives a smaller amount. The major requirements for Teacher Loan Forgiveness are:
- 5 Complete & Consecutive Years At A Qualifying School - You can find the list of qualifying schools here. The five years must be completed after 1998.
- Certain Teachers Get Up To $17,500, Others Up To $5,000 - If you're a highly qualified secondary math or science teacher, or special education teacher, you can receive up to $17,500 in forgiveness.
Once you've completed your 5 consecutive years, you can apply for forgiveness under the program.
**As a side note, you can combine both PSLF and Teacher Loan Forgiveness, just not at the same time. For example, you'd need to work 5 years and do Teacher Loan Forgiveness, then 10 years and apply for PSLF. This doesn't really make any sense because PSLF forgives the entire amount after 10 years. So, if you're considering this route, just go with PSLF.
A circumstance where it might not make sense is if you don't plan on working for 10 years. If you meet the 5 year criteria, and don't plan on teaching any longer, Teacher Loan Forgiveness could make sense.
Another circumstance where it could make sense is if you haven't consolidated your loans and have FFEL loans. Since FFEL loans don't qualify for PSLF, you could do Teacher Loan Forgiveness first, then consolidate your loans and go for PSLF.
Option 3. Perkins Teacher Loan Forgiveness
If you have Perkins Loans, you can get forgiveness up to 100% of your loan balance if you teach full time at a low-income school or teaching certain subjects.
If you have Perkins Loans, you can see your entire loan balance forgiven over 5 years. The great thing about this program is that it gives forgiveness in increments, so even if you don't make it 5 years, you can at least see some of your loan balance disappear.
Here's how it breaks down:
- Year 1: 15% Forgiveness
- Year 2: 15% Forgiveness
- Year 3: 20% Forgiveness
- Year 4: 20% Forgiveness
- Year 5: 30% Forgiveness
This program also has a lot of stipulations. Here are the key requirements:
- Must Teach At A Low Income School or Certain Subjects - You can find the list of qualifying schools here.
- The Qualifying Subjects Include - math, science, foreign language, bilingual studies, and others that have been determined to be in shortage in your state.
- Private Schools Potentially Eligible - If your school is a 501(c)(3) non-profit, it is eligible under this program.
The difficult part of Perkins loans is that they are administered by your college where you received the loan. In order to apply for forgiveness, you need to reach out to your loan servicer or the financial aid office where you received the Perkins Loan.
Option 4. State-Based Loan Repayment Assistance Programs
45 states and the District of Columbia all offer state-based student loan repayment assistance programs. These programs are designed to help states staff teachers in areas or programs where they have shortages.
We have a complete list of state-based student loan forgiveness programs here: Student Loan Forgiveness Programs By State.
It's important to note that, while you may qualify for multiple programs, you cannot overlap programs. For example, if you qualify for a state-based program, you cannot qualify for PSLF at the same time - you would need to do it sequentially.
That's why it's important to look at the value of the state-based program and your own situation prior to signing up for any program.
Secondary Ways To Get Student Loan Forgiveness For Teachers
Beyond these student loan forgiveness programs, there are "secret" student loan forgiveness options that most teachers don't realize. These are secondary ways to get loan forgiveness if something doesn't work out with the above programs (for example, you might stop teaching or working before you qualify).
This "secret" is that all income-based repayment programs (IBR, PAYE, RePAYE, ICR) all include student loan forgiveness on any remaining balance after the repayment period (typically 20 or 25 years). These programs are automatically part of your repayment plan, and you don't have to do anything to sign up (other than continue to maintain eligibility on the repayment plan).
So, if you somehow don't qualify for one of the forgiveness programs listed above, hope is not lost. It will just be a longer process, but you can still potentially get loan forgiveness.
How To Get Professional Help With Your Student Loans
It's important to note that you can do everything with your student loans yourself for free. StudentLoans.gov has a lot of great resources and online applications where you can apply for these programs. However, some people may want to pay for professional help with the student loan debt.
If you want help applying for student loan forgiveness programs, we recommend Ameritech Financial. You can learn more here on their website or call them 24 hours a day: 1-866-863-3870. Ameritech certifies all their specialists and they will be able to evaluate your current loan structure and help guide you through the enrollment process. If loans need to be consolidated in order for you to qualify, they’ll be able to help you with that as well.
If you don’t qualify, refinancing your student debt presents an alternate opportunity to save thousands. Credible enables you to fill out one form and look at personalized offers from multiple lenders.
Final Thoughts
Student loan forgiveness for teachers is a real thing. Teachers have more options for student loan forgiveness than pretty much any other profession. If you're a teacher, you need to be taking advantage of these programs to get out of student loan debt.
It's essentially free money you're ignoring by not taking action. If you need help, reach out! There are lots of ways to get help to ensure you get the student loan forgiveness you deserve.
Carlee says
Hello! I am wondering if these options apply to those with a cosigner who is a teacher in a low-income area. My mom has been a teacher for 15+ years in a low income area and she was the cosigner for several of my brother’s student loans. Would that make his loans qualified for any of these programs? Or does it need to be the actual borrower who is a teacher?
Robert Farrington says
Likely no. When you say “cosigner”, you’re either talking about Parent PLUS Loans or private loans.
Parent PLUS Loans are loans that are 100% in her name. Learn about your options here: http://thecollegeinvestor.com/17101/options-if-you-cant-afford-your-parent-plus-loans/
Private loans are offered by private banks and typically require a cosigner. Both your mom and brother are equally responsible. Learn more about your options here: http://thecollegeinvestor.com/18536/options-if-you-cant-afford-your-private-student-loans/
Victoria says
This guide is really helpful. Thanks for sharing. Hopefully I can pay up my student loan soon.
Robert Farrington says
Glad we could help!
Lillian Fines says
This is a scary process. It’s difficult to trust any one. I am always so skeptical of corporations saying they can help you. I was in touch with someone today whose fee is $895. I’m looking into if the Doan Solutions is a quality company.
Help…my college education is drowning me in finances.
Robert Farrington says
Hi Lillian, it can be difficult to know if a company is legitimate or a scam. We put together a guide with red flags to look for if you’re going to pay a company for help. Read this before moving forward with anyone: http://thecollegeinvestor.com/16429/is-your-student-loan-repayment-company-a-scam/
Becky Cain says
I consolidated my loans in 2005 but took out original loans prior to the 1998 date for the Teacher Forgiveness Loan. Which date will they look at in order to see if I qualify for the forgiveness?
Robert Farrington says
Since you had an “outstanding balance” in 1998, that will prevent you from getting Teacher Loan Forgiveness.
If you still are struggling to repay your loans, and are looking for forgiveness options, consider Public Service Loan Forgiveness.
You can re-consolidate your loans today, so you have a qualifying Direct loan.
Then, you would just have to meet the other criteria:
– Qualifying Repayment Plan
– 120 payments while working at a qualified employer
Amber Schultz says
My husband and I consolidated our loans together right after college. At the time (mid to late 1990’s) that “disqualified” us for forgiveness options according to Nelnet. I have taught special education in a title one public school for 10 years. Do we have new options?
Robert Farrington says
Ugh, spousal consolidation was the worst thing ever – and it’s gone for a reason. Sadly, there isn’t much you can do. You don’t have any forgiveness options and you can’t re-consolidate. You also are limited in your repayment plans as a result of the consolidation.
Stephanie says
Hello,
I have been paying $300 a month onfor close to ten years now. It’s still not even close to being paid off. I recently got a part time position as a Art Teacher at a low income school. Is there anything out there for me to lower or forgive my loans?
Robert Farrington says
You must have full time employment in public service to qualify. What’s your other job?
Jeff M says
Hello
My wife is a high school science teacher in MD. She has found out she quilfies for the 120 payments forgiveness. But can she do the 2 year 17500 forgiveness first which will help save some money if it’s paid to maybe one or two loans? Or will it disqualify her in some way?
Robert Farrington says
You can’t combine them at the same time. You can do them sequentially – but it doesn’t usually make sense to.
I would go after PSLF, get on the lowest repayment plan she qualifies for, not make any extra payments, and enjoy getting as much forgiven as possible.
Read this about why she shouldn’t pay more if she’s getting forgiveness: https://thecollegeinvestor.com/19797/pay-ahead-status-loan-forgiveness/
Consider this since you’re married, it could lower her payments even more: https://thecollegeinvestor.com/17807/the-math-behind-married-filing-separately-for-ibr-or-paye/
Leticia says
Thank you for all of the great advice. I have recently begun subbing and the same school i taught for three years prior. Can i still eventually apply for a loan forgiveness??
Robert Farrington says
Are you working full time? For PSLF, you must have full time public service employment.
However, it doesn’t have to be contiguous. Each of the 120 payments is counted individually, so if you go back to full time work, you can pick up where you left off.
Geraldine Lee says
I am a teacher and have been teaching(Math) at a secondary school consecutively for 5 years at a Title 1 school and want to apply for the loan forgiveness program. Can you please send me the link to submit my application or guide to the correct site.
Robert Farrington says
You can find more information about Teacher Loan Forgiveness and the application here: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/teacher
However, if the $17,500 doesn’t cover the entire loan balance, it usually makes sense to go for PSLF if you qualify.
Shawn says
I am a full time high school math teacher and I am having trouble looking at some of these sites. I live in Florida but some of the sites come up blank when you search for low income schools in Florida. Any suggestions?
Robert Farrington says
Talk your your school district about which are Title 1 schools. Sorry the Department of Education doesn’t maintain their website anymore.
Also, remember, PSLF is better than Teacher Loan Forgiveness everyday.
Theresa Armstrong says
I am a Spanish teacher. I have worked at a Catholic School for 4 years full time before being picked up by a Charter School to be resourced out to all the Catholic Schools in the area. I have been with them for the now 3 years at full time. So I have been working 7 years straight full time. Does these years count for anything? Can I apply for the PSLF after ten years?
Robert Farrington says
Yes, if you can certify your employment in public service (which this sounds like it is), then you’re potentially 7 years towards forgiveness.
Remember, you need to certify your employment, have Direct student loans, and have been on a qualifying repayment program this entire time as well.
Sean says
Hi , two questions:
1) How long does this process take I will qualify in June 2018 this year? 2) When you are ready for the $ distribution do they pay you or the loan directly?
Thank you
Robert Farrington says
Hi Sean,
1. What process? PSLF? If you’ve made 120 payments, it typically takes another 1-3 months to process and see your loan forgiven.
2. When you are approved for forgiveness, it goes to the loan directly.
Ruthy says
Hi,
For student loan forgiveness – do you know if the 5 consecutive years of teaching at a qualified school have to be at the same school or can it be at different qualifying schools (i.e. three years at one, two at another)?
Thanks!
Robert Farrington says
The application states that you can use multiple schools if you can get their administrators to certify it.
George says
I’m a math teacher at a title one high school and I started my master program on my third year of teaching. To pay for my graduate classes I took out a direct unsubsidized loan. So after teaching for five straight years, will the loan that I took out to pay for my graduate classes be forgiven? I’m planning on applying for the teacher loan forgiveness. All my loans will combine to $16,500.
Robert Farrington says
As long as you meet the criteria, yes. And the 5 year clock starts when you’re done borrowing, not when you started.
Nathaniel McGee says
I am a full time teacher finishing up year 5. I teach agriculture education, which is very science based. For the first two years of my career I taught Horticulture as a general science credit class for my students but for the last three I have taught at a school that doesn’t give science credit for Horticulture. Would I qualify as a science teacher and receive up to $17,500 or the $5,000 level?
Robert Farrington says
Great question – I think you would need to ask your administration if Horticulture falls under science or elective (or maybe you already know). If it falls under science, then you should be good.