Teachers often enter the profession with student loan debt and modest starting salaries, especially in high-need schools. The federal government offers several programs to help, and one of the oldest is Teacher Loan Forgiveness. It can forgive up to $17,500 of federal student loans for highly qualified teachers who serve five complete and consecutive academic years in a low-income school or educational service agency. Understanding how Teacher Loan Forgiveness works, and how it compares with Public Service Loan Forgiveness, can help educators make the most of their benefits.
Basic eligibility
To qualify for Teacher Loan Forgiveness, you generally must:
- Teach full time for five complete and consecutive academic years, with at least one of those years after the 1997–98 academic year.
- Teach at an elementary school, secondary school, or educational service agency that is listed in the Teacher Cancellation Low Income (TCLI) Directory for each year of service.
- Be considered a highly qualified teacher under federal standards.
- Not have had an outstanding balance on Direct Loans or FFEL loans as of October 1, 1998, or on the date you obtained a loan after that date.
- Have loans that were made before the end of your five years of qualifying teaching.
Teaching at a private school can qualify if the school is listed in the directory and meets other requirements.
How much can be forgiven?
Up to $17,500
Teachers may qualify for up to $17,500 in forgiveness if they were:
- Highly qualified full-time mathematics or science teachers at the secondary level, or
- Highly qualified special education teachers whose primary responsibility was providing special education to children with disabilities, teaching in the area of their disability.
Up to $5,000
Other highly qualified full-time elementary and secondary teachers may qualify for up to $5,000.
Qualifying loans
Eligible loans include Direct Subsidized and Unsubsidized Loans, Subsidized and Unsubsidized Federal Stafford Loans under the FFEL program, and certain consolidation loans. PLUS loans, including Parent PLUS and Grad PLUS, are not eligible, and private loans are not eligible.
Perkins Loans have their own teacher cancellation provisions, which may cancel a percentage of the loan for each year of qualifying teaching, but no new Perkins Loans have been made since 2017.
The low-income school requirement
Schools qualify if they are listed in the TCLI Directory, which includes schools serving low-income families that meet federal criteria. A school must be listed for each year you count. If your school was listed for some years but not others, the years it was not listed generally do not count, though if a school is listed for one year and later drops off, teaching there may continue to count in certain circumstances. Check the directory on StudentAid.gov for each year of service.
Consecutive years and breaks
The five years must be consecutive, but certain breaks do not interrupt your service, such as a return to postsecondary education related to teaching, a condition covered under the Family and Medical Leave Act, or a call to active military duty. If you teach part of a year, it may count if you complete at least half the academic year and your employer considers you to have fulfilled your contract for that year.
How to apply
- Complete five consecutive years of qualifying teaching.
- Download the Teacher Loan Forgiveness Application from StudentAid.gov.
- Have the chief administrative officer of each school where you taught certify your service.
- Submit the application to your loan servicer.
- Continue making payments while the application is processed, or request forbearance.
You can request forbearance on loan payments during your years of service if you expect to qualify, so that payments are not due while you complete the requirement, though interest continues to accrue.
Teacher Loan Forgiveness vs Public Service Loan Forgiveness
Teachers at public schools and many nonprofit schools also qualify for Public Service Loan Forgiveness, which forgives the remaining balance on Direct Loans after 120 qualifying payments under a qualifying repayment plan while working full time for a qualifying employer. PSLF has no maximum amount.
Key points:
- You cannot count the same period of service for both Teacher Loan Forgiveness and PSLF.
- If you receive Teacher Loan Forgiveness after five years, those years generally do not count toward PSLF.
- For many teachers with large balances who plan to stay in public education, PSLF may provide more total forgiveness.
- For teachers with smaller balances, or who may leave public service, Teacher Loan Forgiveness can provide a meaningful benefit sooner.
Use the Department’s loan simulator to compare outcomes.
Tax treatment
Teacher Loan Forgiveness is generally excluded from federal taxable income as forgiveness tied to working in certain professions under the tax code. Check your state’s rules.
The TEACH Grant
The TEACH Grant provides funds to students preparing to teach high-need subjects in low-income schools. Recipients agree to teach full time in a high-need field at a qualifying school for at least four years within eight years after completing their program. If you do not fulfill the service obligation, the grant converts to a Direct Unsubsidized Loan with interest calculated from the date of each disbursement. Recent rule changes made it easier to request reconsideration if a grant was converted in error. Understand the obligation fully before accepting.
Other loan help for teachers
- State loan repayment programs for teachers in shortage areas or rural districts.
- Income-driven repayment, which can lower payments while you work toward forgiveness.
- District incentives, such as signing bonuses and stipends for hard-to-staff positions.
- AmeriCorps education awards for those who serve in education-related programs.
- Teacher residency programs that provide stipends and tuition support in exchange for service commitments.
Common mistakes
- Assuming all schools qualify without checking the TCLI Directory.
- Counting service years twice for both PSLF and Teacher Loan Forgiveness.
- Applying for Teacher Loan Forgiveness on PLUS or private loans, which are ineligible.
- Failing to obtain certification from each school.
- Not keeping records of employment and certification.
Planning your path
New teachers should map out their plans early. Consider whether you are likely to stay in public education for 10 years or more, your loan balance, and your expected salary growth. If PSLF fits, enroll in an income-driven repayment plan and certify employment annually. If Teacher Loan Forgiveness fits better, confirm your school’s listing and plan for five consecutive years of qualifying service.
Recordkeeping tips for educators
Keep copies of contracts, annual employment verification letters, evaluations showing full-time status, and printouts of your school’s TCLI Directory listing for each year. If you change schools or districts, request written confirmation of your dates of service before leaving. Educators who later apply for either Teacher Loan Forgiveness or PSLF often find that a complete paper trail prevents delays and denials, especially when a former administrator has left or a school has closed.
An example of choosing between programs
Consider a special education teacher at a qualifying low-income public school with a moderate federal loan balance. After five consecutive years, Teacher Loan Forgiveness could cancel up to $17,500 of eligible loans. If that teacher expects to stay in public education for a decade or more, however, enrolling in an income-driven plan and pursuing PSLF might forgive a larger remaining balance after 120 payments. A teacher with a balance below $17,500 who might leave the classroom, by contrast, could benefit more from the certainty of Teacher Loan Forgiveness after five years. Running both scenarios in the Department’s loan simulator, and revisiting the decision each year, helps educators avoid losing years of service credit to the less valuable option.
Frequently Asked Questions
Can preschool teachers qualify?
Teacher Loan Forgiveness generally applies to elementary and secondary schools. Some preschool programs may be considered part of an elementary school under state law. Check with your servicer.
Do I have to teach at the same school for five years?
No. You can teach at different qualifying schools, as long as the years are consecutive and each school qualifies for the relevant year.
Can I get both Teacher Loan Forgiveness and PSLF?
You can receive both, but not for the same period of service.
Is Teacher Loan Forgiveness taxable?
It is generally excluded from federal income. Check state rules.
This article is for general informational purposes only and is not legal, medical, tax, or financial advice. Rules vary by state and change over time; confirm details with the relevant agency or a licensed professional.
