Can You Get PSLF and Teacher Loan Forgiveness?
Decipher your federal student loan forgiveness options as a public servant or educator. Learn to strategically choose between distinct paths for debt relief.
Student loan forgiveness programs help alleviate the financial burden of educational debt for individuals dedicating their careers to public service. For those in education, two prominent federal programs offer debt relief: Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness (TLF). Understanding each program’s distinct requirements and benefits is important for teachers navigating student loan repayment options.
Understanding Public Service Loan Forgiveness
The Public Service Loan Forgiveness (PSLF) program offers debt relief for individuals in qualifying public service roles. It forgives the remaining balance on Direct Loans after a borrower meets specific criteria. To qualify, individuals must be employed full-time by a U.S. federal, state, local, or tribal government organization, including the U.S. military, or a qualifying non-profit organization. This includes tax-exempt non-profits under Section 501(c)(3) of the Internal Revenue Code and some other non-profits providing public services.
Only loans under the William D. Ford Federal Direct Loan Program are eligible for PSLF. Other federal loan types, such as Federal Family Education Loan Program loans or Federal Perkins Loans, must be consolidated into a Direct Consolidation Loan to become eligible.
Borrowers must make 120 qualifying monthly payments while working full-time for a qualifying employer. These payments do not need to be consecutive. Payments must be made under a qualifying repayment plan, with income-driven repayment (IDR) plans being most beneficial for maximizing forgiveness. After completing 120 payments, the remaining Direct Loan balance is forgiven and is not considered taxable income by the IRS.
Understanding Teacher Loan Forgiveness
The Teacher Loan Forgiveness (TLF) program provides forgiveness on federal student loans for teachers in low-income schools. To be eligible, a teacher must be employed full-time for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency.
Qualifying loans for TLF include Direct Subsidized and Unsubsidized Loans, and Subsidized and Unsubsidized Federal Stafford Loans from the FFEL Program. Direct Consolidation Loans that repaid eligible Stafford Loans may also qualify. Loans for which forgiveness is sought must have been made before the end of the five academic years of qualifying teaching service.
The amount of forgiveness depends on the teaching subject area. Highly qualified full-time mathematics or science teachers at the secondary level, or highly qualified special education teachers at either the elementary or secondary level, may receive up to $17,500. Other eligible highly qualified full-time elementary or secondary education teachers may receive up to $5,000. Teachers can identify eligible low-income schools through the annual Teacher Cancellation Low Income (TCLI) Directory.
Comparing PSLF and TLF
While both Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness (TLF) offer federal student loan relief, they operate under distinct frameworks. Borrowers cannot receive credit toward both PSLF and TLF for the exact same period of teaching service. If a borrower completes five consecutive years of qualifying teaching service and receives TLF, that five-year period cannot be simultaneously counted towards the 120 qualifying payments required for PSLF.
The forgiveness amount varies significantly between the two programs. PSLF forgives the entire remaining balance of eligible Direct Loans, with no cap on the amount. In contrast, TLF has a capped forgiveness amount, either $5,000 or $17,500, depending on the subject taught. This difference means that PSLF can offer substantially greater financial relief, especially for borrowers with high loan balances.
The required service length also differs. PSLF requires the equivalent of 10 years of qualifying full-time employment (120 monthly payments), while TLF requires five complete and consecutive years of teaching. PSLF is generally broader in its employment requirements, covering various government and non-profit roles, not just teaching. TLF, by its nature, is specifically for teachers in low-income schools.
Loan type eligibility presents another distinction. PSLF exclusively requires Direct Loans, necessitating consolidation for other federal loan types to qualify. TLF, however, accepts both Direct Loans and Federal Family Education Loan (FFEL) Program loans without requiring consolidation. Finally, PSLF mandates that payments be made under an income-driven repayment plan to maximize forgiveness, while TLF focuses solely on the five years of qualifying service without a specific payment count requirement.
Choosing Your Forgiveness Path
Deciding between Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness (TLF) involves assessing individual circumstances and future career plans. Borrowers should review their specific loan types, current and potential employers, and the duration of their commitment to public service or teaching.
TLF requires five consecutive years of service, a shorter duration than the 10 years (120 payments) required for PSLF. Individuals who may not foresee a decade of continuous qualifying public service employment might find TLF more attainable. However, if a long-term commitment to public service is anticipated, PSLF could provide greater overall financial benefit.
For those pursuing PSLF, enrollment in an Income-Driven Repayment (IDR) plan is strategic. This ensures manageable monthly payments while maximizing the amount eligible for forgiveness. Teachers who qualify for the higher $17,500 TLF amount and have a relatively lower loan balance might find TLF a faster and more direct route to significant debt reduction.
While the same period of service cannot count for both programs, it is possible to sequentially pursue both. For example, an individual could complete five years for TLF, receive that forgiveness, and then continue in qualifying public service towards PSLF on any remaining loan balance. This approach requires careful planning and tracking of eligibility requirements.