Student loan debt can be overwhelming, especially for borrowers who aren’t in a high-paying field. If you’re a teacher with student loans, you may have loan forgiveness options, such as the Teacher Loan Forgiveness Program.
If you’re considering refinancing your loans, you can use Credible to compare student loan refinance rates from various lenders in minutes.
Teacher Loan Forgiveness is a federal program for full-time teachers who work in low-income schools or educational service agencies. It was created to encourage teachers to work in areas with a shortage of qualified teachers. To be eligible for the Teacher Loan Forgiveness program, you must have federal loans and be considered a highly qualified teacher by the U.S. Department of Education.
According to the U.S. Department of Education, you’re a highly qualified teacher if:
Unfortunately, you won’t qualify for Teacher Loan Forgiveness if you’re a school administrator, counselor, librarian or other staff member in the education field. You must be a teacher working in a classroom setting for a qualifying employer.
The Teacher Loan Forgiveness Program offers up to $17,500 in forgiveness for your Direct Subsidized and Unsubsidized Loans, as well as your subsidized and unsubsidized federal Stafford Loans. You may receive the full $17,500 if you’re a highly qualified special education teacher at the elementary school or secondary school level, or a highly qualified mathematics or science teacher at the secondary education level.
You might be eligible for up to $5,000 in loan forgiveness if you work in a different subject area, as long as you meet the other requirements.
You may qualify for Teacher Loan Forgiveness if:
You can use the Teacher Cancellation Low Income (TCLI) Directory to determine whether your place of employment is considered a low-income school or educational service agency.
You’ll need to click on the directory search and select the academic year and the state you live in. To narrow your search, you can also type in the name of your school or educational agency.
If you find you’re not eligible for any teacher loan forgiveness options, you may want to think about refinancing your student loans.
If you meet the requirements and would like to apply for Teacher Loan Forgiveness, follow these steps:
Keep in mind that if you taught at different schools during the five-year period, the CAO from each school must complete the certification section. And if you have multiple loans with different loan servicers, you’ll need a separate form for each one.
If you’re unsure of how many loans or servicers you have, check your Federal Student Aid account. Once you log in, you’ll be able to find all your student loans and loan servicers.
Your loan servicer will determine how long it takes for your application to be processed. To avoid delays, make sure you’ve filled out your application accurately. Don’t forget to verify that your account has the right contact information, and continue to make your student loan payments to remain in good standing.
Public Service Loan Forgiveness (PSLF) is another option you may want to explore if you’re a teacher. It’s a loan forgiveness program for public service workers, including teachers.
To qualify for Public Service Loan Forgiveness, you must be a qualified full-time employee at a government entity or not-for-profit organization. You must also have federal Direct Loans under an income-driven repayment plan. Once you’ve made 120 qualifying payments, you may qualify to have the remaining balance on your loans forgiven. FFEL and federal Perkins Loans are only eligible if you consolidate them into a Direct Consolidation Loan.
You may be able to take advantage of both Teacher Loan Forgiveness and Public Service Loan Forgiveness. But you’ll need to have separate periods of teaching service to do so. For example, if you receive Teacher Loan Forgiveness after five years of teaching, you won’t be able to count any of those payments toward Public Service Loan Forgiveness. You must make 120 additional qualifying payments beyond that teaching period if you want to qualify for PSLF.
If you’re not eligible for federal student loan forgiveness, it’s a good idea to look into state loan forgiveness options for your profession. Available forgiveness programs and their eligibility requirements will depend on where you live.
If you’re unable to qualify for the Teacher Loan Forgiveness program, you may be able to refinance, sign up for an income-driven repayment plan, or even defer your payments.
You can compare student loan refinance rates quickly and easily with Credible.