Student Loan Forgiveness Educators
If you’re in the education field and have student loans, you may qualify for forgiveness programs. These programs are designed to encourage people to enter public service careers or teach in low-income areas. The government is working hard to help people with student loan debt by offering incentives through these programs. Here’s a look at some of the most popular:
Public Service Loan Forgiveness (PSLF) Program
The Public Service Loan Forgiveness Program (PSLF) is a program that allows you to have your student loans forgiven after you work in qualifying employment for as few 24 months.
- What’s the PSLF? *
The Public Service Loan Forgiveness program is a way to erase your federal student loans if they were taken out after October 1, 2007, and if you’re employed full-time by certain types of organizations or businesses. To qualify, you must make 120 on-time payments on your direct federal student loans while working for an eligible employer (see below).
Teacher Loan Forgiveness
- Teacher loan forgiveness is a federal program that forgives the remaining balance of your federal student loans if you teach for 5 years in a low-income public or private school.
- Teacher loan forgiveness is a federal program that forgives the remaining balance of your federal student loans if you teach for 10 years in a low-income public or private school.
- Teacher loan forgiveness is a federal program that forgives the remaining balance of your federal student loans if you teach for 20 years in a low-income public or private school.
- Teacher loan forgiveness is a federal program that forgives the remaining balance of your federal student loans if you teach for 30 years in a low-income public or private school.
Perkins Loan Cancellation and Discharge
Under the Perkins Loan Cancellation and Discharge program, you may be eligible for cancellation of your remaining balance on your Federal Perkins Loan if:
- You work for a school that has received more than $5 million in Federal Perkins Loans over the last five years.
- You teach at an elementary or secondary school that serves low-income families, at least 50 percent of whom receive free or reduced-price lunches.
If you meet these criteria, you are not required to make any payments on your loans while employed in a qualifying position as long as you remain employed there continuously during the period of service.
State-Based Student Loan Forgiveness Programs
State-based student loan forgiveness programs are not a federal program, but rather, they’re administered by the states. These programs are not entitlements or guarantees—you have to apply for them and meet certain criteria in order to be eligible. Some state-based programs may only be available to you if you work in certain fields that are in high demand or provide services that are needed in your state.
Take advantage of the program you qualify for.
Whether or not you are eligible for a student loan forgiveness program, it’s important to know how much exactly your loans cost and what your repayment options are. This will allow you to make informed decisions about how long it will take to pay off your debt and whether or not refinancing is worth doing at all.
The Department of Education offers several different types of repayment plans, each with unique features that can help borrowers save money on their monthly payments. To find out more about these options, visit the Federal Student Aid website at www.studentaid.gov/repay-loans/understand/plans/.
When it comes to student loan forgiveness, there are a lot of different programs available for teachers. You can choose which one works best for you and get started on your financial journey today!