Grants for Teachers to Pay Off Student Loans

Teaching Grants to Pay Off Student Loans

Basically, teachers also avail of programs and grants to pay off student loans in the form of Teacher Student Loan Cancellation and the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program. A “teacher” is an individual who gives educational services to students in classroom settings or classroom-type methodologies in a non-classroom environment or services appropriate in classroom settings like guidance and counseling and services in school libraries. You are only considered a “teacher” if you give first-hand or direct personal education services to your students.

The Teacher Education Assistance for College and Higher Education (TEACH) Grant Program was enacted through the College Cost Reduction and Access Act of 2007 by the U.S. Congress. It offers you up to $4000 per year to low-income students who agree to serve as a full-time teacher in a high need field like math, science, special education, reading specialist, foreign language, and bilingual education and English Language Acquisition whether in a public school or private elementary or secondary school that also serves students of low-income students.

The Teacher Loan Forgiveness Program

The Teacher Loan Forgiveness Program allots up to $17,500 for teachers with subject specializations and $5,000 for teachers who teach in low-income schools who meet certain criteria. The Federal Perkins Loan Teacher Cancellation discharges of up to 100% of the Federal Perkins Loan. Certain criteria for this program include: full time service as a teacher in a nonprofit or public elementary or secondary institution for low-income families; full time service as a teacher in special education; teachers of infants, toddlers and children with disabilities; teacher in science, math, bilingual education and foreign languages; and a teacher in any other specialization where the area of specialization is in shortage of qualified teachers.

The basis for eligibility is on official employed status and not on the position title. Deferment could also be availed while in teaching service. You do not need certification or licenses to qualify for cancellation benefits. You need, however, to be a full-time professional for salary, tenure and retirement benefits. 

To apply for this service, you must complete the necessary forms from the specific office that administers your Federal Perkins Loan in the school you serve in. Your school will determine your qualification and it is prerogative of your school whether you qualify or not.

Moreover, to qualify for Teacher Student Loan Cancellation, you have to teach full time for one full academic year or in its equivalent in a low-income school or a school that caters to low-income families. This would mean that you have completed one school year or two half years continuously in service to that school. This school must also be a registered or formal participant to the program. You may also be teaching in Special Education or in a Designated Short Subject Area in your locale.

If you have the following qualifications, you are eligible to a hundred percent loan cancellation in increments of 15% per first and second years of teaching; 20% for third and fourth years, and 30% for the fifth year. The interest accumulated during a year is also canceled per year.