Teacher Student Loan Forgiveness Programs
Teachers face many obstacles to financial stability. One of the most common is student loan debt. There are a number of programs in place that aim to help teachers pay off their education and get on the road towards financial freedom. Below are some tips for finding out if you qualify for teacher student loan forgiveness, as well as where to start looking for these opportunities:
What student loans qualify for forgiveness
There are three types of loans that can qualify for forgiveness:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Perkins Loans
If your direct loan payments are being made through an employer or another third party, then those payments do not count towards the 120 required monthly payments. If you have consolidated your federal student loans into one loan through a private lender, they may be eligible for forgiveness under certain circumstances. The government has created guidelines that outline how much money you need to pay off before being eligible for forgiveness, but there is one thing you should know that could prevent you from qualifying completely: student loan consolidation doesn’t always make sense in terms of financial aid and repayment options. This is because when you consolidate federal student loans by taking out a new consolidation loan through another lender, they will be responsible for managing all future payments instead of having them deferred while still pursuing their degree as most undergraduate students would experience during their time at school (in fact some borrowers don’t even realize this).
Teacher loan forgiveness
Teachers who work in public or private schools can potentially get their student loans forgiven through the Teacher Loan Forgiveness program.
You must have at least five years of full-time teaching experience, a degree in the subjects you teach, and a teaching certificate or license.
Total and permanent disability discharge
The Total and Permanent Disability Discharge (TPD) is a loan discharge program for borrowers who are unable to work in their fields due to a qualifying disability. Qualifying disabilities include:
- A physical or mental impairment that makes it impossible to work at any job
- An injury or illness that has been medically documented and verified as having occurred during active duty in the military service of the United States, or occurred as a result of an act of war
- A total and permanent disability that makes it impossible to perform any gainful employment
Perkins loan cancellation & discharge
Perkins loans are federally funded loans for students with exceptional financial need. These loans are also referred to as National Direct Loans and are only available to students who are enrolled in an eligible program at a participating school. If you have Perkins loan(s), you may qualify for cancellation or discharge if your school closes unexpectedly, if you teach full time (or work as a librarian) in certain high-needs public schools or districts, or if you’re serving as an AmeriCorps*VISTA Volunteer. If your Perkins loan was made before October 7th of 2007, it’s likely that the school will not verify your employment status after graduation; however, again this depends on whether this information has been provided by the lender prior to disbursement since these programs were introduced after July 1st of 2014.
Getting a teacher loan discharge
The teacher loan discharge program is for teachers who work in low-income schools. If you qualify, you can get your Direct loans discharged if:
- You teach in a high-needs school and earn a low income as determined by the Department of Education’s Income Protection Allowance (IPA). This allowance is adjusted each year.
- Your federal student debt balance is higher than $17,500.
Public Service Loan Forgiveness (PSLF) program
The Public Service Loan Forgiveness (PSLF) program is a federal program that helps borrowers who are employed in public service careers to pay off their student loans. You can qualify for this benefit if you work full time in an eligible occupation, and make 120 monthly payments while on an income-driven repayment plan or working in the public sector.
To qualify for PSLF, you must meet all of the following requirements:
- Work full time at an eligible employer
- Make 120 monthly payments while on an income-driven repayment plan or working in the public sector
- Have no outstanding balance when applying for forgiveness after 10 years of qualifying payments
Student loan forgiveness programs can help you get rid of some or all of your debt.
Student loan forgiveness programs can help you get rid of some or all of your debt. Some programs are for specific professions, and others are for all professions. You may also find that some programs are only available to those who have a certain type of loan, while others are open to everyone.
- Public Service Loan Forgiveness (PSLF) is a program designed to reward borrowers who work in government or nonprofit jobs by forgiving their remaining loan balance after 10 years on an income-driven repayment plan.
- Teacher Loan Forgiveness allows teachers to have their student loans forgiven after working 5 consecutive years in an eligible school district or educational service agency.
- Student loan forgiveness for doctors and other healthcare professionals depends on the program they’re involved in. Most require the borrower to be part of an approved fellowship program, which provides added training in a medical specialty area like surgery or obstetrics/gynecology before beginning private practice as a doctor or dentist
The bottom line is that student loan forgiveness programs are available for teachers. They can help you get rid of some or all of your debt and make it easier to pay off the remaining balance. It’s important to know which types of loans qualify and how they work—so make sure you explore all the options available before making a decision.