The Complete Guide to Student Loan Forgiveness for Teachers

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Teaching is one of the most important professions, but it’s at risk of losing top talent due to low pay and long hours. However, student loan forgiveness for teachers could help reverse that trend.

Approximately 8 percent of teachers leave the field each year, according to the Learning Policy Institute. To compensate, districts would have to hire an additional 145,000 individuals to return schools to their pre-recession teacher-student ratios.

As of 2017, the average starting salary for a teacher was $38,727, according to PayScale. Education majors have lower salary potential compared to other majors.

Meanwhile, the average student loan debt for 2016 graduates regardless of major or profession was over $37,000. It’s clear that these numbers don’t favor a teacher’s ability to repay their student loans.

But there are teacher student loan forgiveness programs from the federal and state government can help.

It’s not easy to sift through all the details of student loan forgiveness for teachers, so we’ve broken it down for you. Here are the options available that will help you dig yourself out of debt.

Federal Teacher Cancellation for Perkins Loans

The Federal Perkins Loan program expired in September 2017. However, if you borrowed money through the program before its expiration date, you might still qualify for Federal Teacher Cancellation for Perkins Loans.

How much it’s worth: Up to $27,500.

Requirements: You must teach at least one year and meet one of the below requirements:

  • Teach at a low-income school (search the directory)
  • Teach special education
  • Teach in mathematics, science, foreign languages, or bilingual education
  • Teach in a field that has a shortage of qualified teachers in your state

How long it takes: Minimum one full year of teaching. 100 percent Perkins Loan debt cancellation after five years.

The details: After just one year of teaching, you can have 15 percent of your outstanding Perkins Loans canceled. This continues in varying amounts until you have all Perkins Loan debt canceled after five years.

To apply, contact the school that holds your Perkins Loans. To learn more about requirements, check out the Federal Student Aid website.

Teacher Loan Forgiveness

How much it’s worth: Up to $17,500 towards Direct or Stafford Loans.

Requirements:

  • Teach at a low-income school
  • Have no student loans originating before Oct. 1, 1998
  • Not be in default

How long it takes: Five complete and consecutive academic years.

The details: This one’s a little more complicated. The amount you can receive is based on your role. There are two tiers for Teacher Loan Forgiveness.

You can receive up to $5,000 if you’re a full-time elementary teacher or full-time secondary school teacher. But you must be teaching in an area related to your academic major.

You can receive up to $17,500 if you’re a highly qualified full-time math or science teacher in an eligible secondary school. You can also receive this award if you’re a highly qualified special education teacher if you meet certain requirements.

To be considered “highly qualified,” you must obtain a full state certification as a teacher or pass the state teacher licensing exam. You must also hold a state license (with a few exceptions).

Certain exceptions are made if you’re an elementary teacher who holds a bachelor’s degree and can meet other requirements. Visit the Federal Student Aid website for more information.

Public Service Loan Forgiveness

How much it’s worth: 100 percent of your Direct Loan balance after 10 years. This amount varies depending on many factors.

Requirements:

  • Must be in certain public sector jobs and employed full-time
  • Must have made 120 payments starting from Oct. 1, 2007
  • Payments must be made as part of certain repayment plans
  • Not be in default

How long it takes: 120 qualified payments, which takes 10 years.

The details: This program isn’t just for teachers, although teachers can qualify. With this option, relief is more long-term than the other programs we discuss above.

This plan typically works best with other types of qualifying repayment plans. For example, you may be able to take advantage of payment plans like Income-Based Repayment (IBR). IBR will lower monthly payments and increase the amount of debt forgiven at the end of 10 years (if any).

However, if you miss any of the requirements, you’ll end up paying more in interest on your loans. To learn more about requirements, visit the Federal Student Aid website.

State programs that offer student loan forgiveness for teachers

These plans vary based on where you live and teach. It’s worth investigating if your state offers teacher student loan forgiveness. Some state programs include:

Arkansas

Arkansas’ State Teacher Education Program provides up to $3,000 to assist educators with repaying their federal student loans. Eligible individuals must teach in areas with a critical shortage or teach an in-demand subject.

Click here for more information about the Arkansas State Teacher Education Program.

Delaware

Under Delaware’s Teacher Corps initiative, teachers who live and work in Delaware might be eligible for loan forgiveness if they teach a critical need subject. With this program, for one year of teaching in a Delaware public school you can get forgiveness equal to one year of your loans.

Click here for more information about Delaware’s Teacher Corps Program.

Illinois

For teachers willing to work in low-income areas, the state of Illinois will award up to $5,000 to help individuals pay back their loan debt. To be eligible, teachers must serve five years in a low-income school.

Click here for more information about the Illinois Teachers Loan Repayment program.

Iowa

The state of Iowa offers student loan repayment assistance to Iowa educators teaching in designated shortage areas. The maximum reward is $17,500.

Click here to learn more about Iowa’s Teacher Loan Forgiveness Program.

Maine

Eligible borrowers can have one year of their loan forgiven for each year of eligible service. But the service must be as an educator, speech pathologist, or child care provider. Certain borrowers can have as much as two years of loans forgiven if they work in an underserved area.

Click here to learn more about Educators For Maine (EFM) Loan Program.

Maryland

If you teach in an underserved or low-income community in Maryland, you could receive up to $10,000 a year to repay your student loans through the Janet L. Hoffman Loan Assistance Repayment Program.

To qualify for aid, you cannot make more than $60,000 a year if you’re single, or $130,000 if you’re married.

Click here for more information about the Janet L. Hoffman Loan Assistance Repayment Program.

Mississippi

Teachers in Mississippi may receive up to $3,000 a year for a maximum of four years to pay their loans. Individuals must work in specific geographic areas or teach certain subjects to be eligible.

Click here for more information about the Mississippi Teacher Loan Repayment Program.

Montana

Through Quality Educator Loan Assistance, you could receive up to $3,000 per year up to four years to help repay your loans. To qualify, you must be a full-time teacher working in rural area, a community with a high percentage of economically disadvantaged students, or a region with critical educator shortages.

Unfortunately, this program lost funding in 2017, and it’s unclear if or when it will return. If you’re a Montana resident, you could contact local legislators and request they fund the program for 2019. You can find more information about the Quality Educator Loan Assistance Program here.

New Mexico

If you teach in a designated high-risk teacher position in a public school, you could receive aid through the Teacher Loan Repayment Program. Awards are dependent on the school’s needs for your position and your total amount of debt.

Click here for more information about the Teacher Loan Repayment Program.

New York

The New York State Education Department designed the Teachers of Tomorrow Program to recruit and retain teachers in the schools with the largest need. Eligible teachers can receive up to $3,400 per year for four years.

Click here for more information about the Teachers of Tomorrow Program.New York

North Dakota

The North Dakota University System provides teachers with $1,000 a year in loan forgiveness, up to a $3,000. Teachers must have a full-time position at a grade level or in an institution that is underserved.

Click here to learn more about North Dakota’s Teacher Shortage Loan Forgiveness Program.

Oklahoma

If you teach math or science in Oklahoma, you could be eligible for reimbursement for certain education-related expenses or a cash benefit. The value of the repayment assistance program varies year to year.

Click here for more information about the Teacher Shortage Incentive Program.

Texas

The Texas Loan Repayment Assistance Program was designed to recruit and retain teachers in areas that have a shortage of educators. Eligible individuals can receive up to $2,500 towards their federal loans.

Click here for more information about the Texas Loan Repayment Assistance Program.

Keep in mind, state programs come and go more often than federal programs, so don’t delay if you’re eligible to apply.

Even though managing student loans on a teacher’s salary can be overwhelming, there is help out there. Programs that provide student loan forgiveness for teachers are designed to make repaying your debt a little easier.

Interested in refinancing student loans?

Here are the top 7 lenders of 2019!
LenderVariable APREligible Degrees 
Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.

Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 3.45% APR (with Auto Pay) to 6.99% APR (with Auto Pay). Variable rate loan rates range from 1.81% APR (with Auto Pay) to 6.49% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of November 6, 2019, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 11/06/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at hello@earnest.com, or call 888-601-2801 for more information on our student loan refinance product.

© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.


2 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student loan Refinance: Fixed rates from 3.46% APR (with AutoPay) to 7.61% APR (without AutoPay). Variable rates currently from 2.31% APR (with AutoPay) to 7.61% (without AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.31% APR assumes current 1 month LIBOR rate of 2.31% plus 0.75% margin minus 0.25% for AutoPay. If approved for a loan, the fixed or variable interest rate offered will depend on your credit history and the term of the loan and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

3 Important Disclosures for Laurel Road.

Laurel Road Disclosures

Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Mortgage lending is not offered in Puerto Rico. All loans are provided by KeyBank National Association.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

ANNUAL PERCENTAGE RATE (“APR”)
This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

FEE INFORMATION

There are no origination fees or prepayment penalties associated with the loan. Lender may assess a late fee if any part of a payment is not received within 15 days of the payment due date. Any late fee assessed shall not exceed 5% of the late payment or $28, whichever is less. A borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.

LOAN AMOUNT

For bachelor’s degrees and higher, up to 100% of outstanding private and federal student loans (minimum $5,000) are eligible for refinancing. If you are refinancing greater than $300,000 in student loan debt, Lender may refinance the loans into 2 or more new loans.
For eligible Associates degrees in the healthcare field (see Eligibility & Eligible Loans section below), Lender will refinance up to $50,000 in loans for non-ParentPlus refinance loans. Note, parents who are refinancing loans taken out on behalf of a child who has obtained an associates degrees in an eligible healthcare field are not subject to the $50,000 loan maximum, refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for more information about refinancing ParentPlus loans.

ELIGIBILITY & ELIGIBLE LOANS

Borrower, and Co-signer if applicable, must be a U.S. Citizen or Permanent Resident with a valid I-551 card (which must show a minimum of 10 years between “Resident Since” date and “Card Expires” date or has no expiration date); state that they are of at least borrowing age in the state of residence at the time of application; and meet Lender underwriting criteria (including, for example, employment, debt-to-income, disposable income, and credit history requirements).

Graduates may refinance any unsubsidized or subsidized Federal or private student loan that was used exclusively for qualified higher education expenses (as defined in 26 USC Section 221) at an accredited U.S. undergraduate or graduate school. Any federal loans refinanced with Lender are private loans and do not have the same repayment options that federal loan program offers such as Income Based Repayment or Income Contingent Repayment.

All loans must be in grace or repayment status and cannot be in default. Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment. Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.

For Associates Degrees: Only associates degrees earned in one of the following are eligible for refinancing: Cardiovascular Technologist (CVT); Dental Hygiene; Diagnostic Medical Sonography; EMT/Paramedics; Nuclear Technician; Nursing; Occupational Therapy Assistant; Pharmacy Technician; Physical Therapy Assistant; Radiation Therapy; Radiologic/MRI Technologist; Respiratory Therapy; or Surgical Technologist. To refinance an Associates degree, a borrower must also either be currently enrolled and in the final term of an associate degree program at a Title IV eligible school with an offer of employment in the same field in which they will receive an eligible associate degree OR have graduated from a school that is Title IV eligible with an eligible associate and have been employed, for a minimum of 12 months, in the same field of study of the associate degree earned.

INTEREST RATES

The interest rate you are offered will depend on your credit profile, income, and total debt payments as well as your choice of fixed or variable and choice of term. For applicants who are currently medical or dental residents, your rate offer may also vary depending on whether you have secured employment for after residency.

DISBURSEMENT OPTIONS

The repayment of any refinanced student loan will commence (1) immediately after disbursement by us, or (2) after any grace or in-school deferment period, existing prior to refinancing and/or consolidation with us, has expired.

POSTPONING OR REDUCING PAYMENTS

After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship.

We may agree under certain circumstances to allow a borrower to make $100/month payments for a period of time immediately after loan disbursement if the borrower is employed full-time as an intern, resident, or similar postgraduate trainee at the time of loan disbursement. These payments may not be enough to cover all of the interest that accrues on the loan. Unpaid accrued interest will be added to your loan and monthly payments of principal and interest will begin when the post-graduate training program ends.

We may agree under certain circumstances to allow postponement (deferral) of monthly payments of principal and interest for a period of time immediately following loan disbursement (not to exceed 6 months after the borrower’s graduation with an eligible degree), if the borrower is an eligible student in the borrower’s final term at the time of loan disbursement or graduated less than 6 months before loan disbursement, and has accepted an offer of (or has already begun) full-time employment.

If Lender agrees (in its sole discretion) to postpone or reduce any monthly payment(s) for a period of time, interest on the loan will continue to accrue for each day principal is owed. Although the borrower might not be required to make payments during such a period, the borrower may continue to make payments during such a period. Making payments, or paying some of the interest, will reduce the total amount that will be required to be paid over the life of the loan. Interest not paid during any period when Lender has agreed to postpone or reduce any monthly payment will be added to the principal balance through capitalization (compounding) at the end of such a period, one month before the borrower is required to resume making regular monthly payments.

KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

This information is current as of November 8, 2019 and is subject to change.


4 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers.


5 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 1.9299999999999997% effective October 10, 2019.


6 Important Disclosures for LendKey.

LendKey Disclosures

Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it  endorse,  any educational institution.

Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of  5 years and is reserved for applicants with FICO scores of at least 810.

As of 11/07/2019 student loan refinancing rates range from 1.90% to 8.65% Variable APR with AutoPay and 3.49% to 7.75% Fixed APR with AutoPay.

 


7 Important Disclosures for College Ave.

College Ave Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

1College Ave Refi Education loans are not currently available to residents of Maine.

2All rates shown include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.

3$5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.

4This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

Information advertised valid as of 09/23/2019. Variable interest rates may increase after consummation.

1.81% – 6.49%1Undergrad
& Graduate

Visit Earnest

2.31% – 7.36%2Undergrad
& Graduate

Visit SoFi

1.99% – 6.65%3Undergrad
& Graduate

Visit Laurel Road

2.43% – 7.60%4Undergrad
& Graduate

Visit Splash

2.02% – 6.30%5Undergrad
& Graduate

Visit CommonBond

1.90% – 8.65%6Undergrad
& Graduate

Visit Lendkey

2.74% – 6.24%7Undergrad
& Graduate

Visit College Ave

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Published in Public Service Loan Forgiveness, Student Loan Forgiveness, Student Loan Repayment

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