Teachers often graduate from college with substantial student loan debt. Nearly half of teachers have borrowed for their education, and they owe an average of $58,700, according to a 2020 National Education Association survey.
Thankfully, student loan forgiveness for teachers can make repaying that debt easier.
Teachers have several options for getting loans forgiven, including Public Service Loan Forgiveness (PSLF), which is open to most public workers, as well as dedicated programs just for educators.
- Forgiveness programs for teachers
- Qualifying for Teacher Loan Forgiveness
- How to apply for Teacher Loan Forgiveness
- Should you refinance your student loans instead?
Types of student loan forgiveness for teachers
Teachers could potentially be eligible for three different federal programs that offer student loan forgiveness. There may also be state-specific options available in your area.
Public Service Loan Forgiveness
PSLF is available to anyone who has eligible federal student loans and works for a government employer or a qualifying nonprofit. This means many teachers who work for either public or private K-12 schools can qualify.
Before your loans are forgiven, you must make 120 qualifying payments while on an income-driven repayment plan. You must also work full-time for an eligible employer during this time. Once you complete these payments, any remaining debt will be forgiven.
PSLF is available only for federal Direct Loans, although Federal Family Education Loans (FFEL) or Perkins Loans can become eligible for PSLF through student loan consolidation. You can use Federal Student Aid’s PSLF tool to determine your eligibility.
Teacher Loan Forgiveness
Teacher Loan Forgiveness is a federal program offered exclusively to educators. Depending on what field you teach, you can have up to either $5,000 or $17,500 in debt forgiven.
You must work as a highly qualified teacher for five consecutive years at a low-income school to be eligible (more on this below). You could get $17,500 of forgiveness if you teach high school-level math or science, or work as a special education teacher at either the elementary or secondary level. All other eligible teachers may qualify for $5,000 of forgiveness.
Only Direct or FFEL Subsidized or Unsubsidized Loans can be forgiven through this program. PLUS and Perkins Loans aren’t eligible.
| Tip: You can potentially qualify for both PSLF and Teacher Loan Forgiveness, but you must fulfill the requirements of each program independently. You can’t use the same period of teaching service to qualify for both programs. |
Perkins Loan cancellation for teachers
If you have federal Perkins Loans, you may qualify to have up to 100% of those loans erased if you work in a public or nonprofit elementary or secondary school. Early childhood education providers, employees at family service agencies, and faculty members of colleges or tribal universities may also qualify.
To be eligible, you must do one of the following:
- Work in a school serving low-income families
- Work as a special education teacher (including for infants or toddlers)
- Teach math, science, foreign languages, bilingual education, or another field that your state education agency determines has a shortage of qualified teachers
A portion of your Perkins Loans will be forgiven for each full-time year of service you provide, with 15% of your balance canceled in your first and second years, 20% forgiven during the third and fourth years, and 30% canceled during the fifth year.
The school that originated your Perkins Loans (or the company that services those loans) manages this type of cancellation. Reach out to them for instructions, or visit Federal Student Aid for more information.
State forgiveness programs
Many states also offer forgiveness programs specifically for teachers, although options vary. These programs will repay all or a portion of your loans if you meet eligibility requirements. They often require a service commitment of several years, and you may need to work in a high-need area or a field that has a teacher shortage.
Check your state’s Department of Education website to search for forgiveness options where you live. You can also reach out to your employer, professional organizations, or your network to find programs you may qualify for.
Qualifying for the Teacher Loan Forgiveness program
In order to qualify for Teacher Loan Forgiveness, you must meet the following requirements.
You got your loans at the right time
To qualify, you can’t have had outstanding Direct Loans or FFEL loans as of Oct. 1, 1998. If you received your loans after that date, you must not have had an outstanding Direct or FFEL loan balance at the time when you secured the new funding.
Plus, the loans you want to be forgiven must have been issued before you finished the five years of teaching service that qualify you for forgiveness.
You work as a highly qualified teacher
You must be employed full-time as a highly qualified teacher for five consecutive academic years. At least one of these years must have occurred after the 1997-98 academic year.
To be considered “highly qualified,” you must:
- Have a bachelor’s degree or higher
- Maintain full state certification as a teacher
- Not had certification requirements waived on an emergency or temporary basis
You may also need to prove your subject matter knowledge by passing a state test, holding a degree in the field you teach, or meeting other evaluation standards.
You complete the necessary academic years (or fall within an exception)
In general, you must complete a full academic year of teaching in order for it to count toward your five years of service.
If you can’t complete a full academic year, you could potentially still count a partial year if you worked at least half the year, your employer deems your contract fulfilled, and you couldn’t finish working because:
- You went back to school at least half-time in a program directly related to your teaching.
- You were called out of reserves to active duty military status for more than 30 days.
- You left due to a reason covered by the Family and Medical Leave Act.
You work at a school or agency serving low-income students
In order for your school to count as a qualifying institution, it must be listed in the Teacher Cancellation Low Income (TCLI) directory. Search this database to see if your school is eligible.
Applying for Teacher Loan Forgiveness
To take advantage of the Teacher Loan Forgiveness program, you must submit an application after you complete your five years of qualifying teaching.
You can find the Teacher Loan Forgiveness application on the Federal Student Aid site. You’ll need to provide:
- Your contact details and Social Security number
- Where and when you taught
- What type of teacher were you
The chief administrative officer for your school must also complete a section of this application to certify your work.
Once it’s complete, submit the form to your loan servicer. If you have loans with more than one servicer, you’ll have to submit a separate application to each.
Should you refinance your student loans instead?
Student loan forgiveness for teachers is one way to make repayment easier. But the eligibility criteria can be strict, and borrowers with private student loans may have trouble finding forgiveness options. In that case, refinancing student loans could help make your debt more manageable.
When you refinance, you take out a new loan from a private lender and use that money to pay off your current debt. You then make payments on the new loan, which should have a lower interest rate or offer other advantages.
If you lock in a lower rate, you can save significant money in interest payments. Or, you could choose to extend your loan’s repayment term. This can lower your monthly payments, but you’ll likely pay more in interest over time.
| Important: Refinancing federal student loans comes with added risk, as you’ll permanently lose access to federal benefits such as forgiveness programs, income-driven repayment, and more flexible deferment and forbearance. If you hope to qualify for a federal teacher forgiveness option, don’t refinance until after any eligible debt has been canceled. |
If you’re thinking about refinancing your loans, compare options from different private lenders to see which loan provider offers the most affordable rates and best terms.