Programs Offer Student Loan Repayment Help for Teachers
Teaching is a noble profession, but not necessarily the most profitable one. You choose to enter this field because you love children, enjoy teaching or maybe because the hours and vacation time are convenient in caring for your own family. But no teacher has ever entered the field to get rich.
Unfortunately, the cost of obtaining the education, training and credentials you need to work as a teacher can mean that many students end up with significant and sometimes unaffordable student loan debt in the process. While it's possible to shop around for more cost effective programs, for many the damage is already done.
The federal government and many states realize that this debt may dissuade some from entering or staying in this profession. Consequently, there has been an increase in student loan relief programs for those in the teaching profession in the last 10 or 15 years. We've chosen to highlight some of the more generous programs in this blog post, but American Student Assistance offers a comprehensive guide to all education-related benefits.
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Loan-Specific Programs
Several types of loans have forgiveness options built right in. Perkins loans, for example, have a program that forgives 100 percent of an eligible borrower's loan balance over five years. Special education teachers, those at educational service agencies or in teacher shortage areas and faculty at tribal colleges all qualify.
Federal Stafford loans also have their own built in forgiveness program for teachers. The Teacher Loan Forgiveness program will forgive between $5,000 and $17,500 of eligible Stafford loans if you teach for five consecutive years in a teacher shortage or other Title I area.
The forgiveness amount is based in part on the level of your teaching credential as well as what or whom you teach. Illinois residents, for example, get a matching $5,000 awarded by the state. Iowa offers up to 20 percent -- maxed at the annual state tuition rate -- of an eligible teacher's Stafford loan balance per year teaching in a designated teacher shortage area. North Dakota offers $1,000 per year for up to three years to eligible teachers, and those amounts can be used toward not only federal loans, but also a certain private loan.
And if you live in New Mexico for at least a year and commit to teaching in a low-performing school for at least two years, you could end up having most of your federal loans forgiven. The award is based on available funding and is tiered based on what you teach.
[Read about three reasons to give thanks for student loans.]
Awards to Help With Higher Credentials
In addition to the federal teacher forgiveness programs, several states have created student loan forgiveness programs for teachers that may have loans from higher credentials, such as Graduate PLUS loans.
Residents of Arkansas who teach in critical shortage areas may be eligible for up to $4,000 in loan forgiveness each year for a maximum of three years. Qualified loans include Stafford, Graduate PLUS loans and Perkins loans.
Mississippi and Montana have similar programs that award $3,000 per year for up to four years. The Teach for Texas program award amount varies based on the annual budget, but averages $2,500 per year and can be used toward most federal loans, including graduate loans.
[Find out how to eliminate student loan debt without paying for it.]
Programs for Specialized Teachers
One of the most generous loan forgiveness programs we've seen for teachers also comes from the federal government -- in this case the U.S. Health and Human Services Department. Eligible faculty at accredited health professions colleges can receive up to $40,000 in student loan repayment for a two-year commitment. Even better, those funds are often matched by their employer.
Public Service Loan Forgiveness
The Student Loan Ranger has talked about the Public Service Loan Forgiveness program several times in the past, and if you don't qualify for any of the programs we've talked about so far or if the benefits don't come near to covering your student loan debt, PSLF will be an option for most teachers.
One thing you may have noticed as you read through these programs and benefits is that almost none of them repay private student loans. Teachers often have a very low salary, especially starting out, which can make loan repayment a challenge.
As most private loan programs don't offer income-based repayment options, it is strongly advised that those drawn to this profession take on minimal debt and restrict that debt to federal loans whenever possible.
While teaching may not be tempting in the monetary sense, I think most teachers will tell you -- this Student Loan Ranger's mom included -- that this profession can be one of the most rewarding.
Betsy Mayotte, director of regulatory compliance for American Student Assistance, regularly advises consumers on planning and paying for college. Mayotte, who received a B.S. in business communications from Bentley College, is a frequent contributor to ASA's SALT Blog; responds to public inquiries via the advice resource "Just Ask;" and is frequently quoted in traditional and social media on the topics of student loans and financial aid.
