Teachers with federal student loans have four loan forgiveness options: Public Service Loan Forgiveness, Teacher Loan Forgiveness, Perkins Loan Cancellation for Teachers, and state-sponsored student loan forgiveness programs. Continue reading to find out the ones you could be eligible for and how to assess your alternatives.
Loan forgiveness programs for teachers are designed to help educators who work in certain schools or educational contexts. These initiatives are intended to encourage teachers to work in low-income schools or topic areas where there are teacher shortages.
Table of Contents
1. Public Service Loan Forgiveness (PSLF)​
After 120 eligible payments (calculated over ten years), PSLF forgives the outstanding debt on your federal Direct Loans.
The Public Service Employee Loan Forgiveness program is not limited to teachers, it may be extremely useful for educators who work full-time in public schools or other eligible public service employment. Your remaining Direct Loans amount can be forgiven after making 120 qualified monthly payments (usually over 10 years) under this program.
PSLF, unlike other programs, does not require you to teach at a low-income public school. PSLF instead requires that you work for a qualified company. This covers all levels of government (federal, state, municipal, and tribal), non-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code, and other non-profit organizations that offer certain types of qualified public services.
Direct Loans are required. If you have additional federal loans, such as FFELs or Perkins Loans, you must consolidate in order for those loans to be eligible. You can check the dashboard here to know what type of loan you have.
You must have Direct Loans and be enrolled in an eligible repayment plan to qualify. You must work full-time for a qualifying public sector employer to be eligible for the program. This category includes several public schools and institutions. To guarantee a seamless forgiveness procedure, you must keep up with your payments and employment verification during the ten-year period.
Payments must fulfill certain criteria in order to count toward the 120 required for forgiveness. The IRS does not consider loan forgiveness under PSLF to be taxable.
You can check complete program details at StudentAid.gov/publicservice.
Use the PSLF Help Tool to see if you qualify for the program and if your prior payments have been credited.
2. Teacher Loan Forgiveness Program​
After 5 complete and consecutive years of teaching at an eligible school, TLF will forgive up to $17,500 of your Direct or Federal Stafford Loans.
Teaching is a noble profession that shapes the future of our society. However, educators often face the challenge of student loans looming over their heads. The Teacher Loan Forgiveness Program (TLF) is a lifeline that provides relief to dedicated teachers burdened by student loans.
The Teacher Loan Forgiveness Program is a federal initiative aimed at helping teachers who work in low-income schools or educational service agencies. To be eligible, you must have taught full-time for five consecutive academic years in a qualifying educational institution. These schools typically serve a significant population of low-income families. The program offers two levels of forgiveness:
- Highly qualified secondary school teachers (those who teach core academic subjects) can receive up to $17,500 in loan forgiveness.
- Elementary school teachers and others can qualify for up to $5,000 in loan forgiveness.
This program covers specific loan types, including Federal Direct Subsidized and Unsubsidized Loans and Federal Stafford Loans. Loans like PLUS loans and Perkins Loans are not eligible for this program.
You can apply for TLF one you have completed the five-year teaching requirement.
Eligibility Criteria for the Teacher Loan Forgiveness Program (TLF)​
To take advantage of the Teacher Loan Forgiveness Program (TLF), educators must meet specific eligibility requirements:
- Minimum Teaching Service: You must have worked as a full-time teacher for five consecutive academic years in a low-income school or educational service agency.
- Direct Loans: The loans for which you are seeking forgiveness must be Direct Loans or consolidated loans that included Direct Loans.
- Loan Origination Date: Your loans must have originated after October 1, 1998.
- Teacher Certification: You must hold a state-issued teacher certification and be highly qualified according to the state’s standards.
- Subject Area: Your teaching service must have been in mathematics, science, special education, or another high-needs field.
Forgiveness of up to $17,500 is available to highly qualified special education and secondary mathematics or science teachers. Other qualified instructors may get up to $5,000.
This program does not allow for the forgiveness of PLUS or Perkins loans.
Any time you spend teaching to get AmeriCorps benefits cannot be included toward the five years of teaching necessary for TLF.
To increase your forgiveness amount, file for a Teacher Loan Forgiveness Forbearance, which means you won’t have to make monthly loan payments (though interest will still accumulate). Borrowers with a loan outstanding larger than the TLF amount applied for (either 17,5000 or $5,000) are ineligible for this sort of forbearance.
Lily, for example, teaches special education in a low-income school and has a loan amount of $10,500. She intends to apply for Teacher Loan Forgiveness in 5 years in order to pay off her loan burden. However, she does not want to make payments in the meantime because doing so will diminish her debt forgiveness amount. Lily chooses to file for a TLF Forbearance in order to avoid making loan installments and to gain as much loan forgiveness as possible.
Teacher Loan Forgiveness Program (TLF): Common Misconceptions​
There are a few misconceptions about the Teacher Loan Forgiveness Program (TLF) that need to be clarified:
Misconception: Loan forgiveness is instant after five years.
Reality: Loan forgiveness is only granted after the completion of five consecutive, qualifying years of service.
Misconception: All loans are eligible for forgiveness.
Reality: Only Direct Loans or consolidated loans that include Direct Loans qualify.
Frequently Asked Questions (FAQs) About the Teacher Loan Forgiveness Program (TLF)​
Q: Can I apply for the TLF if I teach at a private school?
Yes, you can apply for the TLF if you teach at a private school, but the school must be recognized as a non-profit organization.
Q: Is there a limit to the loan amount that can be forgiven?
Yes, the maximum loan forgiveness amount through the TLF is $17,500.
Q: Can I apply for loan forgiveness if I teach part-time?
Unfortunately, part-time teaching does not qualify for the TLF. Only full-time teaching service is eligible.
Q: What if my loan application is denied?
If your application is denied, review the reasons for denial and ensure you meet all eligibility criteria. You can also consider applying again with corrected information.
Q: Can I work in multiple low-income schools for one year each to qualify?
No, the TLF requires five consecutive years of full-time teaching service at an eligible school.
Q: Can the TLF be combined with other loan forgiveness programs?
Yes, the TLF can be combined with other federal loan forgiveness programs as long as you meet the eligibility criteria for each program.
3. Perkins Loan Cancellation for Teachers​
If you teach full-time at a low-income school or teach specified courses, this program will forgive up to 100% of your Federal Perkins Loan(s).
You may be eligible for debt cancellation based on your teaching service if you have Federal Perkins Loans. This program offers partial loan forgiveness to teachers who work in high-need subjects such as special education, mathematics, science, foreign languages, or bilingual education. With each year of qualified service, the amount of cancellation increases.
Because the specifics of this program differ, you should contact your loan servicer or the institution that holds your Perkins Loan to establish your eligibility and the exact amount of potential debt cancellation.
Only Federal Perkins Loans are eligible for forgiveness under this program. You can check your dashboard to see if you have any Perkins Loans.
If you are eligible for this program, you may be able to cancel up to 100% of your loan in the following increments:
- For the first and second years of service, 15% is canceled every year.
- For the third and fourth years, 20% is canceled.
- 30% cut for the fifth year
Each canceled amount per year includes the interest earned during the year.
Check our online database for the year(s) you were employed as a teacher to see if a school is classed as a low-income school.
Even if you do not teach at a low-income school, you may be eligible if you teach mathematics, science, foreign languages, bilingual or special education, or any topic recognized by your state education department to be in short supply in your state.
Private school teachers may qualify if the institution has acquired nonprofit status with the Internal Revenue Service (IRS) and is delivering elementary and/or secondary education in accordance with state law.
Learn more about the termination of Perkins Loans. Contact the holder of your Perkins Loan for the following steps in applying for Perkins Loan cancellation.
4. State-Sponsored Student Loan Forgiveness Programs​
Many states have their own loan forgiveness programs that are tailored to their own educational needs. These efforts often target teacher shortage areas or underserved communities. The degrees of forgiveness, qualifying requirements, and approved institutions vary substantially by state.
Explore your state’s Department of Education website or contact educational agencies to identify relevant state-specific programs. Benefits from these programs might range from loan forgiveness to grants or scholarships for teacher education.
Remember that each debt forgiveness program has its unique set of eligibility rules, application procedures, and deadlines. To make the most of these possibilities created to help educators like you, it’s critical to properly investigate each program you’re interested in, obtain appropriate documents, and keep informed.
| Aspect | Teacher Loan Forgiveness Program (TLF) | Public Service Loan Forgiveness Program (PSLF) |
|---|---|---|
| Eligibility | Available to teachers who work in low-income schools or educational service agencies. | Open to individuals working in various public service sectors, including education. |
| Loan Types Covered | Direct Subsidized and Unsubsidized Loans, Federal Stafford Loans. | Direct Loans (including Direct Consolidation Loans). |
| Loan Amount Forgiveness | Up to $5,000 or $17,500, depending on the subject taught and school location. | Remaining balance after making 120 qualifying payments. |
| Service Requirement | 5 consecutive years of full-time teaching in a low-income school or educational agency. | 10 years of qualifying payments while working full-time in public service. |
| Qualifying Payments | N/A (Years of service determine eligibility). | 120 qualifying monthly payments under a qualifying repayment plan. |
| Employment Certification | Not required; apply for forgiveness after completing 5 years of qualifying service. | Required to submit Employment Certification Form annually or when changing employers. |
| Tax Implications | Forgiven amount may be tax-exempt. | Forgiven amount is tax-exempt under current tax laws. |
| Eligible Institutions | Low-income schools or educational service agencies. | Government organizations and qualifying nonprofits. |
| Subject-Specific Eligibility | No specific subject requirement. | Applies broadly across public service sectors. |
| Application Process | Apply for forgiveness after completing 5 years of eligible service. | Submit Employment Certification Form and apply after 120 payments. |
| Forgiveness Timeline | After 5 years of qualifying service. | After 10 years of qualifying payments. |
| Funding Cap | The program has a specific funding cap. | No specific funding cap, but eligibility criteria must be met. |
What If You Qualify for More Than One Program​
You may be eligible for more than one of the federal forgiveness programs mentioned above. However, in certain cases, your decision to participate in one program may limit your capacity to participate in another. So take your time and thoroughly examine each one.
To be eligible for Public Service Employee Loan Forgiveness program (PSLF), you must have Direct Loans. If you have Perkins Loans, you may be tempted to merge them into the Direct Loan Program to make them PSLF eligible. If you do this, you will no longer be eligible for Perkins Loan cancellation. You could be better off leaving your Perkins Loans out of the consolidation loan in order to benefit from both programs.
For the same time of teaching duty, you may not get benefits under both the TLF Program and the PSLF Program. For example, if you make loan payments throughout your five years of eligible work for TLF and later obtain loan forgiveness for that service, those payments will not count toward PSLF.
PSLF and TLF may be beneficial to certain persons. Receiving TLF after 5 years and PSLF after 15 years, for example. This is a unique circumstance that is beneficial for a borrower with a greater loan total and a lower AGI.
When deciding on a forgiveness program, keep your own situation in mind.
