Teacher Loan Forgiveness: Public Service & Title I Programs

• You qualify for Public Service Loan Forgiveness if you work full-time at a public school, private nonprofit, or charter school. This program offers full forgiveness after 10 years of payments, with no cap.

• Teacher Loan Forgiveness provides up to $17,500 in forgiveness after five years of teaching in a low-income school or a high-need area, such as special education or secondary math and science.

• Perkins Loan Cancellation can erase your balance gradually if you teach in qualifying schools or subjects, forgiving portions each year up to 100% after five years.

If you’re a teacher with student loans, you’ve got two main options for loan forgiveness: Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness (TLF). But let’s get real—these programs can feel like trying to find your way out of a maze, especially with all the paperwork and eligibility rules.

• Public Service Loan Forgiveness: This program is usually the best option if you have a lot of student debt. It’s meant to erase your remaining federal loan balance tax-free, no matter how much you owe, as long as you qualify.

• Teacher Loan Forgiveness: This has a lower cap on the forgiveness amount, plus more restrictions. It typically requires teaching in a Title I (low-income) school or as a special education instructor.

For many teachers, particularly those with higher loan balances, PSLF offers a clearer path to full forgiveness.

If you’ve been wondering which program best fits your situation, we’ll break down the details and help you get the relief you deserve—without the stress.

Related

• Biden Student Loan Forgiveness

• Trump Wins – What Does That Mean for Student Loan Forgiveness?

Many teachers miss out on having their loans forgiven through the PSLF Program because the rules aren’t clear and the process is complicated.

With teaching, managing home responsibilities, and everything else, it can feel overwhelming to understand PSLF requirements. Even though it should be simple, the program has a lot of rules to figure out.

Here’s the key information you need—and we’ve helped many teachers, even those with high balances, secure full forgiveness under PSLF:

• Qualifying Employers: PSLF applies to full-time roles at public schools, charter schools, and most private nonprofits. There’s no requirement to teach specific subjects or work at a Title I school; as long as your employer is eligible, you’re covered. For the full list, refer to our Qualifying Employers Guide.

• No Cap on Forgiveness: After 120 qualifying monthly payments under an income-driven repayment (IDR) plan, PSLF forgives your remaining federal loan balance tax-free. This is a strong choice for teachers with high student debt, as there’s no maximum forgiveness amount.

• New Rules Mean More Eligibility: Thanks to recent updates, teachers may now receive retroactive credit for past repayment periods, deferments, or forbearance—even if they previously held non-Direct Loans (i.e. FFEL and Perkins Loans) or had gaps in qualifying payments. Consolidation won’t restart your progress toward forgiveness, which could bring you closer to PSLF than you think.

Related: How to Consolidate FFEL Loans into Direct Loans

3 Steps to Make Sure You’re on Track

1. Use the PSLF Help Tool: This tool verifies if your employer qualifies, lets you submit PSLF certification forms, and helps track your 120 payments toward forgiveness.

2. Certify Your Employment: Submit the certification form annually or whenever you change employers to ensure all qualifying payments are counted. The required document is in our Applications and Forms Guide.

3. Monitor Your Payments: Regularly review your payment history with your loan servicer to catch any errors and confirm qualifying payments.

The Teacher Loan Forgiveness Program can be a good choice if you’re looking to reduce your student loan balance sooner and have lower debt.

But TLF is capped and may not fully address larger balances. So this program is the best option for teachers who may pay off their loans before reaching the 120 payments required for PSLF.

Here’s what you need to know to see if TLF is right for you.

Eligibility Requirements for TLF

• Employment Requirement: You must teach full-time for five consecutive academic years at a low-income elementary or high school or an educational service agency. This employment requirement targets educators in high-need areas.

• Loan Eligibility: Only specific federal loans qualify for TLF, such as Direct Subsidized and Unsubsidized Loans and Federal Stafford Loans. Other loans, like PLUS Loans or Perkins Loans, aren’t eligible. To confirm your loan type, check with your loan servicer or review your account on the Federal Student Aid website.

• Maximum Forgiveness Amount: The program offers up to $17,500 in forgiveness for highly qualified teachers in special education or secondary math or science roles. Other eligible borrowers can qualify for up to $5,000 in assistance.

Is TLF Right for You?

TLF is typically most beneficial for teachers with lower student loan debt who can pay off their remaining balance within a shorter timeframe.

Here’s a look at two scenarios to help you decide which program might work best for your situation:

• Example 1: A school teacher with a loan balance of $15,000, working full-time at a low-income school district, could see most or all of their balance forgiven through TLF after five years of teaching service. This could save time compared to waiting for PSLF, which requires 10 years or 120 payments.

• Example 2: For a teacher with a larger balance of $60,000 or more, PSLF may be a better option, as it offers full forgiveness after 120 qualifying payments under an income-driven repayment plan, without a cap on the forgiven amount. PSLF can be a more comprehensive route for teachers planning to remain in public or nonprofit education long-term.

If you’re unsure about committing to 10 years of service, TLF might offer the quicker relief you need. But if your student loan debt is substantial and you intend to continue working in education, PSLF could ultimately cover your remaining balance.

For teachers with Federal Perkins Loans, the Perkins Loan Cancellation program offers up to 100% loan forgiveness in exchange for eligible teaching services.

Unlike other student loan forgiveness programs, you don’t need to complete all years of service to receive partial cancellation—it’s forgiven gradually over five years.

Eligibility: Full-time teachers in low-income schools, as well as those in high-need subjects like math, science, foreign languages, bilingual education, or special education, may qualify.

Forgiveness Schedule:

• 15% canceled per year for the first and second years of service

• 20% canceled per year for the third and fourth years

• 30% canceled in the fifth year

This schedule offers flexibility, especially for teachers working to eliminate smaller loan balances. Contact your Perkins Loan holder (check with your loan servicer if unsure) to begin the application.

In addition to federal programs, some states offer their own teacher loan forgiveness programs to support educators in high-need areas and subjects. These programs vary by state but often provide additional assistance for teachers in underserved regions or high-demand subjects like math, science, and special education.

• Eligibility: Requirements differ by state, often targeting teachers in high-need regions or subjects, such as special education or STEM fields.

• How to Apply: Visit your state’s education agency website or contact their office for the most current details on available programs and eligibility criteria. These programs can be a valuable addition to federal forgiveness options, especially for teachers working in qualifying areas with smaller loan balances.

• When to Consider These Options: If your student loan debt is moderate, these state programs can complement Teacher Loan Forgiveness or other federal options to help reduce your balance faster. For teachers with larger loan balances, Public Service Loan Forgiveness is likely the best path, as it offers full forgiveness after 120 qualifying payments with no cap on the forgiven amount.

Related: State Programs For Student Loan Forgiveness

Private student loans typically don’t offer forgiveness options for teachers, making it harder to find direct relief. We know this can feel limiting, but there are a few strategies that might help manage these loans effectively.

Alternative Options

• Refinancing: If you qualify based on credit score and income, refinancing can lower your interest rate or extend your repayment term. Be cautious, though, as refinancing federal loans with a private lender removes federal protections. Refinancing may reduce monthly payments but can increase total interest over time. Learn How to Refinance Your Student Loans.

• Loan Repayment Assistance Programs (LRAPs): Some states or private organizations offer LRAPs to provide partial relief, especially in high-need areas, though these programs are rare. Checking with your state education agency or professional organizations can help you identify any available LRAPs in your area.

• Settlement Options: For teachers whose loan payments are unsustainable, negotiating a settlement could be an option. This process involves defaulting to open negotiations, which can impact credit, so it’s often a last resort.

• Bankruptcy for Private Loans: While challenging, filing for bankruptcy may discharge private student loans if you demonstrate undue hardship. This option is typically for extreme cases, as it requires proving financial hardship beyond normal repayment difficulties.

Managing private student loans as a teacher can be difficult, but exploring these options carefully could offer a way forward. If you’re struggling with private student loan debt, consider consulting a financial counselor for guidance on refinancing, settlement, or other available resources.

Teachers already have a lot to juggle, and figuring out student loan forgiveness shouldn’t be an extra burden. For most teachers with federal student loans, Public Service Loan Forgiveness is often the best bet—full forgiveness after 10 years of service, with no cap on the amount forgiven.

If you’re looking for a shorter-term option, the Teacher Loan Forgiveness program might work, especially if you’re in special education, science, or math or if you teach at a low-income elementary or secondary school.

Got Perkins Loans? The teacher cancellation program lets you knock down your balance year by year. And while private loans don’t come with forgiveness, options like refinancing or state-specific LRAPs might still help.

If you’re already feeling stretched, we’re here to cut through the noise and guide you toward the right choices. We’ve helped teachers just like you reach the finish line with their loans—if you’re ready for some expert help, book a consultation, and let’s get started.

Related reading:

• Jobs that Qualify for Student Loan Forgiveness

• How to Apply for Student Loan Forgiveness

• Student Loan Forgiveness for Early Childhood Educators

• School Counselor Student Loan Forgiveness

• Student Loan Forgiveness for Social Workers