Top Loan Forgiveness Programs for Teachers

Option #1: Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness Program was established in 2007 and is designed to provide student loan forgiveness for people working in public service careers, including teachers. The minimum qualification requirements for this program include:

• Working full-time for a government agency or certain nonprofits.
• Owing Direct Loans or a Direct Consolidation Loan.
• Being enrolled in an income-driven repayment plan
  Making 120 qualifying payments.

Option#2: Teacher Loan Forgiveness (TLF)

Forgives up to $17,500 of your Direct or FFEL Subsidized or Unsubsidized Loans after 5 complete and consecutive years of teaching at a qualifying school.

Option#3: Perkins Loan Cancellation for Teachers.

Forgives up to 100% of your Federal Perkins Loan Program if you teach full-time at a low-income school, or if you teach certain subjects. 

If you’re eligible for this program, up to 100% of the loan may be canceled for teaching service, in the following increments:

• 15% canceled per year for the first and second years of service.
• 20% canceled for the third and fourth years
• 30% canceled for the fifth year.
• Each amount canceled per year includes the interest that accrued during the year.

Option#4: State-Sponsored Student Loan Forgiveness Programs.

Many states offer loan forgiveness programs for teachers—especially if you teach in a high need area.

The American Federation of Teachers has a great searchable database you can use to find state and local forgiveness programs for which you might qualify.