About Teacher Loan Forgiveness

Teacher loan forgiveness gives financial incentives for people who are willing to teach in schools in low-income areas, where teacher salaries may not be high. These loans also encourage people to teach in high-need areas, which can allow schools to get the appropriate number of teachers in these fields. The specifics of loan forgiveness programs vary by state and federal government regulations, but they can save significant money for teachers with student loan debt.

Qualifications

For a teacher to qualify, she must have taught for five consecutive years at a school qualifying under the Department of Education's current definition of a low-income school. The Department of Education publishes this list each year, and it is based in part on the number of students who qualify for services, such as free and reduced lunch. These teachers must get certification of their teaching from the school's administrator.

Amount

The amount of student loan forgiveness teachers get varies. One program grants forgiveness of $5,000 for five years of service in low-income elementary and secondary schools. This amount increases to $17,500 for teachers who work in certain subject areas. These subject areas include math, some sciences and special education for children with disabilities.

Potential

For teachers who got the minimal amount of loans for their college education, going through this program can eliminate a good chunk of their loans. The monthly payment for a student loan of $5,000 at 3.25 percent interest and paid back over 10 years is $48 a month. This payment can be wiped out for qualifying teachers, making a little more breathing room in the budget.

Warnings

Some other qualifiers apply, and these requirements change every few years. Before 2004, teachers had to prove their ability in the basics of reading, writing, and math to qualify for the loan forgiveness. After 2004, teachers must teach in a subject area related to their college major, which can be complicated for teachers who majored in education but teach secondary school. Direct questions to the Department of Education or the school's administrator if there is any question about the teaching assignment qualifying.

Additional Options

Many states have their own programs for teacher loan forgiveness. For example, in Georgia, teachers of foreign languages qualify for some teacher loan forgiveness. Arkansas has a program called STAR, State Teacher Assistance Resource. These programs often work in addition to federal teacher loan forgiveness but also can open the doors for more teachers to get forgiveness. Checking the your state's education department will let you know if your state has such as progam.