As an encouragement for more people to get into teaching, due to lack of teachers in the USA, there is a program whereby those who go into teaching after college can have their loans canceled. The new student loan forgiveness for teacher scheme helps teachers to have debt balance cleared on the loans they took to help them through college.

It is designed particularly for schools and areas that need help from professional educators and it serves as an incentive to encourage people into the teaching profession. There are teacher student loan forgiveness programs from the state and federal government that can help in clearing off this loan. The following are the various options that are 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. But, if you borrowed money through this program before its expiration, you may still have access to the Federal Teacher Cancellation for Perkins Loans which is worth, up to $27,500.

What Does It Involves

It is essential that you teach at least one year and meet one of the following requirements:

  • Teach special education.
  • Teach at a low-income school.
  • Teach in a field that has a shortage of qualified teachers in your state.
  • Teach in science, mathematics, bilingual education or foreign languages.
Duration

Minimum of 1 year of teaching and 100 percent Perkins Loan debt cancellation after 5 years.

After one year of teaching, you’ll have 15 percent of your outstanding Perkins Loans canceled. This will continue to change in amounts until you have all Perkins Loan debt canceled after 5 years. If you want to apply, just contact the school that holds your Perkins Loans.

Teacher Loan Forgiveness

This loan forgiveness worth Up to $17,500 towards Stafford or Direct Loans.

What Does It Involves
  • You must have no student loans originating before Oct. 1, 1998.
  • You must not be in default.
  • Teach at a low-income school.
Duration

Five complete and successive academic years.

This program is a little more complex. The amount you will get depends on your role. There are two levels for Teacher Loan Forgiveness.

  • 1. You can receive up to $5,000 if you’re a full-time secondary school teacher or full-time elementary teacher. You must be teaching in an area that is related to your academic major.
  • 2. You can receive up to $17,500 if you’re a qualified full-time science or math teacher in an eligible secondary school. You can also get this award if you’re a highly qualified special education teacher if you meet some requirements.

To be considered highly qualified, you must pass the state teacher licensing exam or get a full state certification as a teacher. You must also have a state license which has a few exceptions. Some certain exceptions are made if you’re an elementary teacher who holds a bachelor’s degree and you can meet other requirements.

Public Service Loan Forgiveness

You can get 100 percent of your Direct Loan balance after 10 years. This amount depends on some factors.

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

120 qualified payments, which take 10 years.

This plan normally works best with some other types of repayment plans. You may benefit from payment plans such as Income-Based Repayment (IBR). IBR will increase the amount of debt forgiven at the end of 10 years and reduce your monthly payments. But, failure to meet any of the requirements, you’ll pay more interest on your loans.

State-Based Loan Repayment Assistance Programs

There are some states that offer state-based student loan repayment assistance programs. This program is designed to assist states staff teachers in areas where they have shortages. It's essential to look at the worth of the state-based program and your own conditions before you sign up for any program.

Other Ways to Get Student Loan Forgiveness for Teachers

Apart from these student loan forgiveness programs, there are other ways to get loan forgiveness if things do not work correctly with the above programs. For example, you may stop working or teaching before you qualify. You must know that all income-based repayment programs such as PAYE, IBR, ICR, and RePAYE all include student loan forgiveness on any balance after the repayment period which is usually between 20 to 25 years.

You don't have to do anything to sign up and these programs are automatically part of your repayment plan. Therefore, if you don’t qualify for one of the forgiveness programs listed above, do not lose hope. It only involves longer process, but you can still get loan forgiveness.

Conclusion

The new student loan forgiveness for teachers is a good way to encourage and inspire teachers. Teachers have many choices for student loan forgiveness than any other profession. If you're a teacher, you must take advantage of these programs which will help you get out of student loan debt.

Interested in Refinancing Student Loans?

Here are the top 5 lenders to refinance Student Loans in 2018!
Logo

Variable Rate
2.58% - 7.07%

Fixed Rates
3.25% - 7.25%

Terms
5, 7, 10, 15, 20 years

Eligible Loan Balances
Minimum: $5,000
Maximum: None

Logo

Variable Rates
2.69% - 6.01%

Fixed Rates
3.09% - 6.69%

Terms
5, 7, 10, 15, 20 years

Eligible Loan Balances
Minimum: $15,000
Maximum: No Max

Logo

Variable Rates
3.92% - 11.52%

Fixed Rates
6.07% - 12.66%

Terms
8, 10, 12, 15 years

Eligible Loan Balances
Minimum: $2,000
Maximum: Cost of Attendance

Common Bond

Variable Rates
2.55% - 7.10%

Fixed Rates
3.14% - 7.25%

Terms
5, 7, 10, 15, 20 years

Eligible Loan Balances
Minimum: $5,000
Maximum: $500,000

LendKey

Variable Rates
2.56% - 7.94%

Fixed Rates
3.15% - 8.12%

Terms
5, 7, 10, 15, 20 years

Eligible Loan Balances
Minimum: $7,500
Maximum: $300,000