Comprehensive Guide to Qualify for Teacher Loan Forgiveness Programs

Key Takeaways

A few key points to remember:

• Teacher Loan Forgiveness allows qualifying teachers to have between $5,000 – $25,000 in federal loans forgiven
• Eligibility requires 5 consecutive years of full-time teaching service at a low-income school or in critical specialty subjects
• Only Federal Direct and Stafford Loans qualify – not private loans
• Special ed, STEM, and multi Special ed, STEM, and multi-subject teachers may qualify for up to $25,000 in forgiveness (instead of $17,500 max)
• Perkins loans may be fully cancelled after 5 years of qualifying teaching
• Apply using the Teacher Loan Forgiveness Application once all service requirements are met
• Additional amounts can be forgiven annually after the initial 5 year commitment
• Forgiveness can be expedited to just 3 years by teaching multiple high-need subjects
• Always maintain loans in good standing and continue making payments until forgiveness confirmed

Teaching is an incredibly important yet often underappreciated profession. Many teachers take on substantial student loan debt in order to earn their teaching credentials, yet end up being paid much less than other college graduates in jobs with more lucrative compensation. Thankfully there are teacher loan forgiveness programs available that aim to provide relief to qualifying teachers who commit to years of service in high-need subject areas or low-income schools.

What is Teacher Loan Forgiveness?

Teacher loan forgiveness refers to programs that help teachers who meet specific requirements have a portion of their federal student loans forgiven after teaching full-time for 5 consecutive years in a low-income school or educational service agency. Some teachers may qualify after as little as 3 consecutive years of teaching if they meet additional criteria.

The majority of teacher loan forgiveness is offered through the federal government. However certain states, school districts, or other organizations may offer their own teacher loan forgiveness or repayment assistance programs with varying eligibility guidelines.

In this comprehensive guide we will focus primarily on federally-funded Teacher Loan Forgiveness administered through the U.S. Department of Education.

How Much in Loans Can Be Forgiven?

Under the federal Teacher Loan Forgiveness program, if you teach 5 consecutive years and meet all eligibility requirements, you may have up to $17,500 in federal student loans forgiven. This applies only to Direct Subsidized Loans, Direct Unsubsidized Loans, Subsidized Federal Stafford Loans, and Unsubsidized Federal Stafford Loans.

For teachers in certain specialties willing to teach for 5 consecutive years in a low-income school or educational service agency, up to $25,000 can be forgiven instead of just the $17,500 maximum. We will cover more details on qualification for this $25,000 teacher loan forgiveness option later in this guide.

Additionally, teachers who teach for more than 5 consecutive years may be able to have portions of their student loans forgiven for additional years, though at lower maximums per year.

For Perkins Loans, cancellation of up to 100% of the loan is possible for teachers based on years of service. We will provide more details down below on Perkins Loan cancellation specifics.

First we will cover the general eligibility requirements under the Teacher Loan Forgiveness Program to see if you may qualify at all for teacher student loan forgiveness.

Am I Eligible for Teacher Loan Forgiveness?

While up to $17,500 in federal student loan debt cancellation sounds enticing for teachers, bear in mind the eligibility requirements are strict and specific. You must meet all criteria to qualify. But it is certainly worth checking to see if your situation may qualify.

Here are the baseline eligibility requirements you must meet for Teacher Loan Forgiveness consideration:

Types of Loans That Qualify

As mentioned previously, only Federal Direct Loans and Federal Stafford Loans qualify for teacher student loan forgiveness. This includes:

• Federal Direct Subsidized Loans
• Federal Direct Unsubsidized Loans
• Subsidized Federal Stafford Loans
• Unsubsidized Federal Stafford Loans

Federal PLUS loans taken out by parents or graduate students unfortunately do not qualify at this time.

Additionally Perkins Loans qualify separately as outlined later in this piece. Private student loans however do not qualify.

You Must Be a Full-Time Teacher

To qualify for Teacher Loan Forgiveness, you must work as a full-time teacher at an eligible elementary or secondary school or educational service agency. This includes public schools, private schools, and nonprofit charter schools.

What is considered full-time? Full-time is defined as meeting your employer’s definition of full-time or working at least 30 hours per week, whichever is greater. This must be in one single position, not cumulative hours across multiple roles.

Substitute teachers, teachers’ assistants, student teacher, and teachers who teach pre-kindergarten* or postsecondary school do not qualify.

*Teachers who work exclusively with pre-k disabled students may qualify – see details here.

You Must Teach 5 Consecutive Years

To qualify for teacher student loan forgiveness, you must teach full-time at an eligible institution for 5 consecutive years. Each of the 5 years must meet the full-time status criteria.

There may be exceptions allowing forgiveness after just 3 years in certain specialties – covered later below.

Loans Must Not Be in Default

In order to qualify for teacher loan forgiveness, your federal student loans cannot be in default. You must be current on all payments or have an approved deferment or forbearance. Defaulted loans do not qualify.

If you previously defaulted but have since brought your loans back into good standing through rehabilitation or consolidation, they may then become eligible for teacher loan forgiveness.

With the base requirements covered, next we’ll dig into the specifics on types of teaching service that may qualify you for loan forgiveness.

What Type of Teaching Service Qualifies Me for Loan Forgiveness?

Remember, to qualify for teacher student loan forgiveness you must teach at an eligible institution full-time for 5 consecutive years while keeping loans in good standing and avoiding default.

With that said, not all teaching positions qualify. Your teaching service must be at a qualifying school type or educational service agency and meet subject matter requirements. Specifically, here is what teaching service may qualify:

Low-Income/High-Need Schools

Teaching at a federally-designated low-income school or location for 5 consecutive years qualifies you for up to $17,500 in loan forgiveness ($5,000 after years 1-3; $2,000 after years 4 and 5).

A low-income school classification means the school has a student population were over 30 percent qualify for Title I assistance. Qualifying schools will have documentation of this designation. [1]

Separately, if your school or educational service agency serves students with disabilities and over 30 percent of the population you teach qualify for Title I assistance based on low family incomes levels, 5 consecutive years of service may also qualify you for forgiveness. [2]

High-Need Subject Areas

Teaching certain high-need subject areas for 5 consecutive years at qualifying schools can make you eligible as well.

Subject areas currently defined as “high-need” areas are: [3]

• Bilingual Education – This involves teaching courses in English language acquisition for English learners, or teaching academic content in two languages.
• Foreign / World Language – Teaching languages such as Spanish, French, Latin or Chinese would qualify.
• Math – Teaching courses such as algebra, geometry, calculus, etc.
• Reading Specialist – Specializing in diagnosis and remediation of reading issues such as dyslexia.
• Science
• Special Education – For example teaching students with hearing/vision disabilities or autism spectrum disorders.

Later below we will cover expanded loan forgiveness specifically for special education teachers willing to teach 5 consecutive years in a low-income school or agency.

Additionally those teaching multiple high-need areas on a full-time basis may qualify after just 3 consecutive years of service instead of 5 years. See these expedited forgiveness options for multiple high-need designations here.

Educational Service Agencies

If you work full-time as a teacher for an eligible educational service agency for 5 consecutive years, you may also qualify for teacher loan forgiveness.

Educational service agencies are regional public entities that provide instructional, administrative, or other services to local educational agencies such as school districts. They offer programs directly to students and schools to help improve learning outcomes across entire regions. [4]

Some examples would include programs focused on curricular development instructional coaching, academic interventions, professional development, or research/data analysis used to improve student achievement.

Examples of Qualifying Teaching Service

Just to clarify with some examples – here are a few scenarios that would qualify for teacher loan forgiveness:

• Teaching 4th grade full-time at a Title I designated elementary school for 5 years
• Teaching high school chemistry full-time for 5 years (counts as “science” – a high need field)
• Serving as a rural educational service agency instructor offering bilingual reading interventions to grade schools for 5 years (bilingual education counts as high-need subject)
• Working full-time as a special education teacher exclusively with disabled students for 5 years at a low-income school

And examples that would NOT qualify:

• Teaching pre-kindergarten students for 5 years
• Working as a teacher’s assistant for 5 years
• Teaching art classes part-time at a middle school for 5 years
• Teaching undergraduate biology seminars at a community college for 5 years

Hopefully these examples help provide clarity on what type of teaching service would and would not meet the Teacher Loan Forgiveness eligibility requirements.

Now that we’ve covered the key rules around eligible teaching service, next we will dig into some special cases that qualify teachers for even more loan forgiveness.

Special Teacher Loan Forgiveness Opportunities

Up until now we’ve covered the main Teacher Loan Forgiveness Program that qualifying teachers can utilize to have up to $17,500 in federal student loans forgiven after 5 consecutive years of service.

However there are some special cases where teachers can receive even more forgiveness – up to the full $25,000 maximum amount – if they teach specific subject areas for 5 years at qualifying low-income schools or agencies.

Additionally teachers who spend more than 5 years teaching may qualify for a tiered forgiveness schedule beyond the initial 5 year commitment.

Here are some of these special scenarios that either increase potential forgiveness amounts or reduce the years of service required:

$25,000 Forgiveness for Special Education Teachers

Special education teachers are in extremely high demand across the country, and this specialized field often requires additional education and certifications.

To help alleviate student debt burdens for those willing to pursue special education long term, the Teacher Loan Forgiveness program offers up to $25,000 in total forgiveness (instead of just $17,500) for special ed teachers who complete 5 consecutive years of service at qualifying institutions. [5]

This applies to those teaching exclusively students with disabilities at a low-income elementary or secondary school, preschool, or educational service agency. See full details in the special education teach forgiveness section here.

###STEM Teachers – $25,000 After 5 Years

Beyond special education, teachers in the critical STEM fields (science, technology, engineering, and math) can also receive up $25,000 in total forgiveness (instead of $17,500) if they complete 5 consecutive years teaching a STEM subject full-time at a qualifying low-income secondary school or youth correctional facility. [6]

Some examples of courses that would qualify include computer science, engineering, environmental science, algebra, biology, chemistry, robotics, etc. See all the details for STEM teacher eligibility in this section.

$2,000 Additional Annual Forgiveness

For teachers who commit to teaching beyond the initial 5 year requirement, additional forgiveness may be granted annually: [7]

• Years 6+: Up to $2,000 forgiven per year
• Years 1-5: Up to $5,000 forgiven per year

So a teacher who qualifies and teaches full-time for 8 years at a low-income school could have up to $17,500 forgiven in their first 5 years then an additional $6,000 forgiven for the 6th, 7th and 8th years of service – totalling $23,500 maximum forgiveness.

While not as significant as the initial 5 year forgiveness amount, this annual option does provide a way for longer-term teachers to continue reducing their overall student debt burdens year after year through continued service.

3 Year Eligibility for Multiple High-Need Designations

As mentioned previously under the high-need subject eligibility section, teachers who teach multiple high-need fields full-time may qualify for forgiveness after just 3 consecutive years of service instead of the normal 5 years. [8]

For example, a science teacher who also teaches math courses on a full-time basis could potentially receive benefits under the Teacher Loan Forgiveness program after just 3 years if the rest of the eligibility criteria is met.

See the full details in the Department of Education’s 3 year forgiveness qualifications section here.

This criteria provides a faster route to forgiveness for those teaching in multiple critical need areas like math + science or special education + English language learning who are helping students in underserved schools.

Perkins Loan Forgiveness for Teachers

While the main Teacher Loan Forgiveness program only applies to Direct Loans and Stafford Loans, recipients of Federal Perkins Loans may also be eligible for 100% cancellation in certain situations.

Specifically, Perkins Loans may be fully cancelled (at increments of 15% per year) if you: [9]

• Teach full-time at a low-income school
• Teach certain specialties like math, science, foreign languages, bilingual education or special ed
• Teach subjects like English, reading, writing, history, civics, economics etc at a low-income school

Perkins recipients can have 100% of their loan cancelled after 5 consecutive years of qualifying teaching service. It takes place as 15% increments after each of years 1-5, then the remaining 40% after year 5.

Part-time teaching in qualified subjects at low-income schools may also qualify you for partial Perkins loan cancellation. See your school’s Perkins loan cancellation policies for specifics.

The key benefit with Perkins loans compared to Stafford/Direct loans is the potential for full 100% forgiveness after 5 years of teaching service compared to just the $17,500 maximum.

How Do I Apply for Teacher Loan Forgiveness?

If after reviewing all the eligibility criteria around teaching service, school types, and loan qualifications you determine you may qualify for Teacher Loan Forgiveness, then you likely want to know how to actually apply for and receive the benefits.

Here is an overview of the steps teachers need to take to request loan forgiveness after completing 5 years of full-time teaching:

1. Complete TEACH Grant Service Agreement

If you ever received a TEACH Grant, you must complete the teaching service obligations associated with that grant program first before pursuing broader teacher loan forgiveness. So finish any 4 year TEACH Grant service commitments before applying separately for the forgiveness program.

2. Confirm Eligibility

Double check that you fully meet one of the eligible situations for teaching service – at a low-income school, in a high need field, for a qualified educational service agency etc. And confirm the loans you have qualify and are in good standing.

3. Gather Documentation

You will need to complete the Teacher Loan Forgiveness application and supply supporting documentation like proof of teaching service from a principal or HR manager, proof of school low-income status, transcripts/teaching licenses proving your expertise in a high need subject etc.

Having detailed records of all your service and loans ready will help streamline the process.

4. Submit Forgiveness Application

Once you’ve taught full-time at a qualifying school for the required 5 consecutive years (or 3 years in certain specialties), and have gathered all documentation, complete and mail in the Teacher Loan Forgiveness Application to the Department of Education. This allows them to review and determine your eligibility.

Note the application must be received within 10 years from when your qualifying teaching service ended. [10]

5. Continue Making Loan Payments

Until you receive confirmation that teacher loan forgiveness has been applied, you must continue making regular payments towards any federal loans in question. Failure to do so can jeopardize eligibility if loans default. Expect the review process to take 2-3 months on average. [11]

Once forgiveness has been applied, you will be reimbursed any loan payments made after eligibility date.

And that covers a high level overview of how to take advantage of teacher loan forgiveness programs! Next we’ll briefly summarize a few final things to remember.

Additional Teacher Loan Forgiveness Resources

For more information on teacher loan forgiveness programs, determining your eligibility, and applying for federal forgiveness benefits explore these great resources:

Teacher Loan Forgiveness Information Page – The Department of Education’s central site detailing theTeacher Loan Forgiveness program, eligibility, subject details, application process and more.

Teacher Loan Forgiveness Application – Download the form required to apply for forgiveness consideration after completing all teaching service requirements.

FedLoan Servicing – Detailed resource on applying from FedLoan Servicing, the servicer who handles administration of teacher loan forgiveness applications/approvals.

Teacher Student Loan Forgiveness Subreddit – Discussion forum where teachers share guidance and field questions on obtaining loan forgiveness.

We sincerely hope this guide has armed you with clarity on what options are available via Teacher Loan Forgiveness programs to help alleviate student debt burdens for dedicated teachers across the country. Relief is possible with proper planning and understanding of how these programs work.