Loan-Forgiveness Programs Available to Support Teachers, Aid Recruitment
A recent blog by the U.S. Department of Education highlighted three federal loan-forgiveness programs available to teachers, in addition to programs available at the state level. Make sure your students (and prospective students) know about these programs:
- Public Service Loan Forgiveness – Forgives the remaining balance on Federal Direct Loans after 120 qualifying payments (10 years).
- Teacher Loan Forgiveness – Forgives up to $17,500 of Direct or FFEL Subsidized or Unsubsidized Loans after 5 complete and consecutive years of teaching at a qualifying school.
- Perkins Loan Cancellation – Forgives up to 100% of Federal Perkins Loans for those teaching full-time at a low-income school, or teaching certain subjects.
Loan-forgiveness programs can be an effective recruiting tool for students who may be apprehensive about joining a profession known for low pay. A recent policy brief from the Learning Policy Institute found that when the financial offset was great enough, programs were able to more successfully recruit (and retain) strong teachers – particularly for high-need schools and fields. The brief also reviews various programs’ successes and challenges in attracting teachers.