Student Loan Forgiveness for Teachers
Teachers with master's degrees average $101,205 in student debt on salaries of $60,000-$70,000. Forgiveness isn't optional—it's essential. Here's how to navigate Teacher Loan Forgiveness vs. PSLF and choose the path that's right for you.
Your Two Main Options
Forgiveness amount:
- $17,500 for highly qualified math, science, or special ed teachers
- $5,000 for other teachers
Time required: 5 consecutive years
Where: Low-income schools (Title I eligible)
Loan types: Direct and FFEL Loans
Forgiveness amount:
- 100% of remaining balance
- Tax-free
Time required: 10 years (120 payments)
Where: Any public school or 501(c)(3)
Loan types: Direct Loans only
You cannot receive credit for both TLF and PSLF for the same period of service. If you use 5 years toward TLF, those 5 years don't count toward your PSLF 120 payments. You must choose one path OR complete TLF first, then start counting PSLF payments fresh.
Which Should You Choose?
Choose TLF if:
- You have relatively low debt ($20,000 or less)
- You qualify for the $17,500 amount (math, science, special ed)
- You want debt relief faster (5 years vs 10)
- You're not sure you'll stay in public service for 10 years
Choose PSLF if:
- You have high debt (over $50,000, especially with a master's degree)
- You plan to stay in public education long-term
- You qualify for low income-driven payments (maximizing forgiveness amount)
- Your debt is high enough that $17,500 barely makes a dent
The Math That Matters
A teacher with $100,000 in debt on PAYE might pay $400/month. Over 10 years, that's $48,000 paid with $52,000+ forgiven tax-free via PSLF.
The same teacher using TLF gets $17,500 after 5 years—then still owes $82,500+. For high-debt teachers, PSLF is almost always the better math.
Teacher Loan Forgiveness Requirements
- Five complete, consecutive academic years of teaching
- At a low-income school (check the Teacher Cancellation Low Income Directory)
- Be highly qualified (state certification, bachelor's degree, demonstrated subject competency)
- Loans must have been taken out after Oct 1, 1998
PSLF for Teachers: Key Points
- All public schools qualify—not just low-income schools
- Private schools can qualify if they're 501(c)(3) nonprofits
- Must be on income-driven repayment (IBR, PAYE, or ICR—not Standard)
- Must have Direct Loans (consolidate FFEL if needed)
- Submit Employment Certification annually
Perkins Loan Cancellation for Teachers
If you have older Federal Perkins Loans, you may qualify for up to 100% cancellation over 5 years:
- Year 1: 15% canceled
- Year 2: 15% canceled
- Year 3: 20% canceled
- Year 4: 20% canceled
- Year 5: 30% canceled
Qualifying positions include teaching in a low-income school, special education, or designated teacher shortage areas. This is separate from TLF and PSLF.
Many states offer additional teacher loan forgiveness or repayment assistance. Check with your state's Department of Education for programs that may stack with federal options.