Teaching can be a rewarding profession, however the teachers are frequently overworked and underpaid. With the average borrower owing almost $40,000 in the student loans, it is easy to know how educators may struggle with repaying student debt. Fortunately, the teachers have a lot of choices when it comes to student loan forgiveness.
Knowing the List of Teacher Loan Forgiveness School
The program of teacher loan forgiveness will be able to help the teachers pay back their student loans. You have to work in a qualifying school for at least 5 consecutive years. To know the list of Teacher Loan Forgiveness schools, or to see if your school qualifies, simply you are able to check out the TCLI (Teacher Cancellation Low Income) directory.
The TCLI (Teacher Cancellation Low Income) Directory lists low-income elementary schools, secondary schools, and educational service agencies that qualify as low-income for purposes of the federal student aid programs, including the William D. Ford Federal Direct Loan and Federal Family Education Loan teacher loan forgiveness program, the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program and Federal Perkins Loan/National Direct Student Loan teacher cancellation.
Eligible schools and educational service agencies are reported to the United States Department of Education by state education agencies for inclusion in the TCLI (Teacher Cancellation Low Income) Directory. To qualify for loan forgiveness or cancellation, or to satisfy the TEACH Grant service obligation, a borrower’s or grant recipient’s qualifying teaching service has to be performed at a school or educational service agency which is listed in the TCLI (Teacher Cancellation Low Income) Directory.
About Student Loan Forgiveness for the Teachers
Need to know that Student loan forgiveness is a program where the federal, state or local government wipes out either all or part of your student loan balances. One of the advantages of teaching is that you were able to have access to multiple student loan forgiveness programs. The eligibility requirements vary, however several programs are going to forgive your debt after just a few years.
Eligibility Requirements for Student Loan Forgiveness For the Teachers
Each student loan forgiveness program for the teachers has different eligibility requirements. For instance, several forgiveness programs are only available if you work at an eligible public school or teach a specific subject. Other forgiveness choices may be more lenient in this area. Need to know that one common requirement, particularly for federal forgiveness programs, is that your student loans cannot be in default. The potential to lose out on the student loan forgiveness benefits is only one more reason why keeping up with your student loan repayment schedule is very crucial.
Types of Loan Forgiveness Programs
Here are types of loan forgiveness programs for the teachers:
Teacher Loan Forgiveness
Eligible teachers will be able to eliminate up to $17,500 of their own federal student debt via the Teacher Loan Forgiveness program. This program works for Direct or FFEL Loans and may be available after you serve as a full-time teacher for 5 or more years.
You have to work full time at an eligible low-income school or educational service agency (ESAs). Your full-time employment will include at least five completed and consecutive academic years. At least one of those years requires it to be after the 1997-1998 school year.
Qualifying for the Teacher Loan Forgiveness program, does not prevent you from receiving additional benefits via the Public Service Loan Forgiveness program.
- What to watch out for
You need to be a highly qualified teacher in science, mathematics, or special education to qualify for the full $17,500 in forgiveness. Other teachers will be able to qualify for loan forgiveness of up to $5,000.
Public Service Loan Forgiveness (PSLF)
Also, you may be eligible for the Public Service Loan Forgiveness program (PSLF), if you work as a full-time teacher. The program can wipe out up to 100 percent of your remaining federal student loan debt after you work for a qualifying government or nonprofit organization for at least ten years.
You have to work full time for the government (federal, state, local) or a nonprofit organization for at least ten years. During that time, you will also need to sign up for an income-driven repayment plan and create 120 qualifying, on-time student loan payments.
The teachers at Public and private schools may be eligible for the program.
- What to watch out for
The Public Service Loan Forgiveness (PSLF) program does not work for private student loans, nor for all federal student loans. If your federal student loans are not eligible, then you will need to consolidate your accounts into a Direct Loan to qualify.
Perkins Loan Teacher Cancellation
During 2017, Perkins Loans were available to certain undergraduate and graduate students with a financial need. Now, the students can no longer receive those student loans. But, if you are a teacher with existing Perkins Loans, they might be eligible for up to 100% cancellation over a five-year period.
You must have a Perkins Loan and become a full-time teacher at a qualifying low-income school. In alternative, you may still be eligible for the cancellation if you teach mathematics, science, a foreign language, bilingual education or special education. In particular states with teacher shortages, you may qualify if you teach a different subject as well.
The teachers at nonprofit private schools may qualify for loan forgiveness, depending on whether the school provides a qualifying education as explained by the state law.
- What to watch out for
If you are eligible, your loans will not be canceled all at once. Instead, 15% of your student loan balances are going to be canceled per year during the first and second years you hold an eligible teaching position. Another 20% of your balances are going to be canceled per year during years three and four. Eventually, 30% of your student loan balances are going to be canceled after your fifth year of eligible employment.