Can You Get Teacher Loan Forgiveness and PSLF?

Federal programs offer pathways to student loan forgiveness for educators dedicated to public service. A common question among teachers is whether these programs can be combined or used sequentially. This article clarifies the distinct features of two primary federal student loan forgiveness options: Teacher Loan Forgiveness and Public Service Loan Forgiveness, detailing their requirements and how they interact.

Understanding Teacher Loan Forgiveness

Teacher Loan Forgiveness (TLF) is a federal program designed to encourage individuals to teach and remain in the profession, particularly in low-income communities. It provides financial relief by forgiving a portion of eligible federal student loans. To qualify, an individual must teach full-time for five complete and consecutive academic years in a school or educational service agency that serves low-income students.

The types of loans eligible for TLF include Direct Subsidized Loans, Direct Unsubsidized Loans, Subsidized Federal Stafford Loans, and Unsubsidized Federal Stafford Loans. Federal Family Education Loan (FFEL) Program loans may also qualify. The Department of Education publishes an annual directory of low-income schools and educational service agencies to help teachers determine if their workplace meets this requirement.

The maximum amount of forgiveness available through TLF depends on the subject taught. Teachers of mathematics, science, or special education at the secondary level, or elementary or secondary teachers in state-determined high-need subjects, may qualify for up to $17,500. Other eligible teachers can receive up to $5,000. To be considered a “highly qualified teacher,” an individual must hold a bachelor’s degree, possess full state certification, and demonstrate competence in the subject areas taught.

Understanding Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) offers a pathway to discharge the remaining balance on eligible federal student loans for borrowers working in specific public service jobs. This program requires a commitment to public service employment and consistent repayment over an extended period. To be eligible, a borrower must be employed full-time by a qualifying employer and make 120 qualifying monthly payments.

Qualifying employers for PSLF include government organizations at any level (federal, state, local, or tribal), non-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code, and other non-profit organizations that provide specific public services. Full-time employment means working at least 30 hours per week. Only Direct Loans are eligible for PSLF; however, other federal loan types, such as Federal Family Education Loan (FFEL) Program loans or Federal Perkins Loans, can become eligible if they are consolidated into a Direct Consolidation Loan.

A “qualifying monthly payment” for PSLF purposes must be made after October 1, 2007, for the full amount due, on time, and while the borrower is employed full-time by a qualifying employer. These payments must be made under a qualifying income-driven repayment (IDR) plan, such as Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), or Income-Contingent Repayment (ICR). The Department of Education provides a PSLF Help Tool to assist borrowers in tracking their progress and understanding requirements.

Comparing Teacher Loan Forgiveness and PSLF

Teacher Loan Forgiveness (TLF) and Public Service Loan Forgiveness (PSLF) have distinct requirements and benefits. A key difference lies in how periods of service are counted between the two programs. The period of teaching service that qualifies a borrower for TLF cannot also be counted toward the 120 qualifying payments required for PSLF. This prevents a borrower from receiving two federal benefits for the same period of service.

The amount of forgiveness also varies significantly. TLF offers a maximum forgiveness amount of either $5,000 or $17,500, depending on the subject taught. PSLF, conversely, forgives the entire remaining balance on eligible Direct Loans after 120 qualifying payments, which can be considerably higher for borrowers with large loan balances. The service commitment also differs; TLF requires five consecutive years of teaching, while PSLF necessitates 10 years of qualifying employment.

Teachers must carefully consider their individual circumstances when deciding which program to pursue. If a teacher has a relatively low loan balance, or teaches in a high-need subject area that qualifies for the $17,500 TLF amount, that program might provide quicker and substantial relief. For teachers with higher loan balances who anticipate a long career in public service, PSLF could offer more comprehensive forgiveness. It is possible to pursue TLF first, receive that forgiveness, and then begin working toward PSLF, as long as the service periods do not overlap for credit.

Applying for Loan Forgiveness Programs

The application process for federal loan forgiveness programs requires careful attention to detail and consistent record-keeping. For Teacher Loan Forgiveness (TLF), borrowers must complete the Teacher Loan Forgiveness Application. This form requires certification from the chief administrative officer of the school or educational service agency where the teaching service was performed, confirming the dates of employment and the qualifying nature of the service. Once completed and signed, the application is submitted to the borrower’s loan servicer.

For Public Service Loan Forgiveness (PSLF), the process involves an initial and ongoing certification of employment, followed by a final application for forgiveness. Borrowers are encouraged to submit the PSLF Form (also known as the Employment Certification Form) periodically, typically annually or whenever they change employers. This form also requires certification from a qualifying employer, verifying the borrower’s full-time employment during specific periods. Submitting this form regularly helps ensure payments are correctly counted and provides an opportunity to address any discrepancies early.

The PSLF Form and the final PSLF Application are submitted to MOHELA, which is the federal loan servicer currently responsible for administering the PSLF program. Regardless of which program a borrower pursues, maintaining meticulous records is important. This includes copies of all submitted forms, documentation of employment history, and records of all loan payments made. Processing times for applications can vary, potentially taking several months, and borrowers should expect communication from their loan servicer regarding the status of their application and any requests for additional information.