Are you a teacher struggling to pay off your student loans? You’re not alone. In the United States, teachers collectively owe more than $500 billion in student loan debt. Fortunately, there are a number of programs that offer student loan forgiveness for teachers. Many of these little-known programs are not limited to educators so read on and share this article so others may benefit as well.
While the loan cancellation programs apply to many careers, this article will focus on the implications and policies for teachers. The Public Service Loan Forgiveness (PSLF) Program has made headlines lately because of sweeping changes enacted by President Biden and the current administration, and by the legal actions filed to stop that legislation. However, other effective, lesser known programs exist that can support teachers who serve in specific school districts, filling a need in a particular set of subjects.
One such program is Perkins Loan Teacher Cancellation, which offers up to 100% cancellation of Federal Perkins Loans. Teachers must qualify for this program by 1) teaching in schools which service low-income families, and 2) teaching in a specific subject deemed to have shortage of instructors according to the listing. The program works by canceling a portion of the student loans based on the years worked as follows: 15% of the principal loan for each of the first and second full academic years, 20% of the loan for each of the third and fourth years, and 30% for the fifth year of teaching. The year is determined by a full academic year or its equivalent. Given the differences between institutions, there is no minimum requirement to document hours per day or days per year.
Who is a teacher? For the Perkins forgiveness program, teachers are defined as elementary or secondary instructors who work in a way that directly connects with classroom instruction including a school librarian or guidance counselor. Certification is not required to receive cancellation benefits. However, applicants must work full-time as determined by salary, tenure, and/or retirement benefits.
Administrators, supervisors, curriculum specialists, and researchers are not considered teachers unless they can show evidence that they “primarily provide direct and personal educational services to students,” according to the program webpage.[1]
Perkins Loan Teacher Cancellation is also available for other groups including but not limited to those working as full-time nurses or medical technicians, firefighters, speech, pathologists, law enforcement or corrections officers, public defenders, US military in hostile environments. Those working in early intervention services may also be eligible for 100% loan forgiveness. Serving in volunteer organizations such as the Peace Corp or AmeriCorps may earn up to 70% loan cancellation under the same program. See the website under Perkins Loan Cancellation and Discharge Summary Charts (https://studentaid.gov/manage-loans/forgiveness-cancellation/perkins) for the complete list of eligible cancellation programs.
Does my school qualify?
Only educators with direct connections to the classroom who work in specific schools are eligible for forgiveness under this program. You can determine if you are teaching in a low-income school, where 30% of the students qualify for Title I funding, by checking this database.[2] An Excel spreadsheet is available for download at the top of the page that lists all schools in the state selected in the search criteria.
Which Subjects Have Shortages?
To determine if a subject has a shortage, a nationwide list is available through this interactive database that identifies all the teacher shortages by state. For example, New Jersey lists the following subjects in need of teachers: English as a Second Language, World Languages, Mathematics, Science, Special Education, and Career and Technical Education (CTE). Comparatively, California shows shortages in Language Arts, Mathematics, Science and Core Elementary Subjects, while Pennsylvania lists 12 possible subject areas that are considered to have a shortage.
How to Apply
The application process for cancellation of Perkins loans must be made to the school where the loan originated. Contact your college bursar for the form that they will sign and send to you. You must get the appropriate signature(s) from your human resources staff or supervisor who will verify your employment and finalize the processing of your documents. If you have other questions, visit the Federal Student Aid website for more information: https://studentaid.gov/manage-loans/forgiveness-cancellation/perkins
Summary
If you are an educator with direct classroom connections that teaches in a qualifying school (and there are many) in a subject that is listed as a shortage area in that state, you may qualify for Perkins Loan Teacher Cancellation. Use the tools to confirm eligibility and contact the bursar at the college you attended to start the application process for Perkins loan forgiveness. Confirm the form reaches the right person at your place of employment and ensure it is completed and returned appropriately. Check StudentAid.gov to see the progress after each year of service. After 5 full years of working in a qualifying role in a qualifying district, the Perkins Loans should be canceled.
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[1] Who is considered a Teacher? https://studentaid.gov/manage-loans/forgiveness-cancellation/perkins
[2] Teacher Cancellation Low Income (TCLI) Directory of schools nationwide who service a student population where greater than 30% qualify for Title I funding based on family income. https://studentaid.gov/tcli/
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This Post is republished on Medium.
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