Can Substitute Teachers Get Loan Forgiveness?

Student loan forgiveness programs offer financial relief, and educators often inquire about their eligibility. A common question concerns substitute teachers and their qualification for these programs. This article explores the federal programs available and clarifies specific criteria that may apply to substitute teaching positions.

Overview of Federal Loan Forgiveness Programs for Educators

Two primary federal programs offer student loan forgiveness: the Teacher Loan Forgiveness (TLF) program and the Public Service Loan Forgiveness (PSLF) program. Each has distinct requirements regarding eligible loans, employment, and service duration.

The Teacher Loan Forgiveness (TLF) program incentivizes teaching in low-income schools. Eligible educators can receive up to $17,500 in forgiveness on Direct Subsidized, Unsubsidized, and Federal Stafford Loans. To qualify, an educator must teach full-time for five complete and consecutive academic years in a designated low-income elementary school, secondary school, or educational service agency. Loans must have been made before the end of this five-year service.

The Public Service Loan Forgiveness (PSLF) program offers another pathway to debt relief. PSLF forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a qualifying employer. Qualifying employers include U.S. federal, state, local, or tribal government organizations, and tax-exempt 501(c)(3) non-profits. Payments must be made under an income-driven repayment plan or a 10-year Standard Repayment Plan. Federal Family Education Loan (FFEL) Program and Perkins Loans can become eligible if consolidated into a Direct Consolidation Loan.

Specific Eligibility for Substitute Teachers

Substitute teacher eligibility for loan forgiveness depends on how their employment aligns with TLF and PSLF definitions. Definitions of “highly qualified teacher” and “full-time” employment are important.

For TLF, a substitute teacher must meet the “highly qualified teacher” definition. This typically means holding a bachelor’s degree, possessing full state certification, and not having certification waived on an emergency, temporary, or provisional basis. Teachers must also demonstrate subject competence, often through state licensing exams. Consistently meeting these criteria across assignments can be a challenge for substitutes.

The “full-time” employment requirement for TLF mandates five complete and consecutive academic years of service. An academic year is one complete school year at the same school, or two complete and consecutive half-years at different schools. Proving “full-time” service for five consecutive academic years can be complex for substitutes, especially if working for multiple schools or districts. Employment must be at a low-income elementary school, secondary school, or educational service agency, verifiable through the annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. This program focuses on direct classroom teaching; school librarians, guidance counselors, and administrative staff are not considered teachers.

For PSLF, the main hurdle for substitute teachers is the “full-time” employment definition and “qualifying employer” criteria. PSLF requires full-time work for a U.S. federal, state, local, or tribal government organization or a qualifying non-profit. Public school districts typically qualify as government employers. Full-time employment for PSLF is defined as the greater of 30 hours per week or the employer’s definition of full-time. A substitute teacher must consistently average at least 30 hours per week, or the employer’s full-time equivalent, for 120 months.

Consistent documentation is important for substitute teachers seeking either program. For both TLF and PSLF, employment verification forms require certification from an authorized official, like a principal or HR representative, at the service location. These forms confirm employment dates, full-time status, and for TLF, highly qualified teacher status and low-income school designation. Substitute teachers should track their hours and obtain official verification from each employer to confirm eligibility. The structure of the substitute teaching position, including whether it is through a district or a third-party agency, can influence eligibility, as direct employment by a qualifying entity is typically required.

Steps to Apply for Loan Forgiveness

Applying for federal student loan forgiveness requires careful attention to detail and consistent record-keeping. First, ensure all eligibility criteria for TLF or PSLF have been met over the required service period. Then, gather the necessary application forms.

For Teacher Loan Forgiveness, obtain the official application from your loan servicer or the Federal Student Aid website. Borrowers complete sections with personal and teaching service details. The chief administrative officer of the school or agency where teaching occurred must complete and sign a certification section, verifying employment, full-time status, and highly qualified teacher status. If teaching occurred at multiple schools, separate certifications may be needed from each officer.

After completion, submit the signed Teacher Loan Forgiveness Application to your loan servicer. If loans are held by different servicers, send a separate form to each. Make a copy for your records. Processing times typically range from 45 to 90 days. Borrowers may request a forbearance during processing if they anticipate forgiveness will cover their full loan balance.

For Public Service Loan Forgiveness, the process uses the PSLF & Temporary Expanded PSLF (TEPSLF) Certification & Application form. The Federal Student Aid website offers a PSLF Help Tool to guide borrowers in generating and submitting this form. The tool identifies eligible employment and helps pre-fill the form. Submit this form annually or whenever employment changes to track progress toward the 120 qualifying payments.

The PSLF form requires the borrower to complete their sections, then have an authorized official from their qualifying employer certify employment. This certification confirms employment dates, full-time status, and organization type. The form can often be submitted digitally, with the employer receiving an email request to sign and certify. Once certified, the form is electronically submitted to the Department of Education. For manual submission, a printed form, signed by both, can be mailed or faxed. Processing times for PSLF applications vary, generally ranging from one to three months. Borrowers are not required to make payments while their PSLF application is processed. Maintain thorough records of all submitted applications and communications with loan servicers for both programs.