Repayment Options and Programs for Educators

Do you have a federal student loan? Are you confused about your repayment options? The U.S. Department of Education has created some powerful tools to help you manage your loans and, in some cases, get loan forgiveness. These resources, provided by the federal Department of Education, will help you manage and repay your federal student loans.

Getting Started

Know when you have to start making payments. For most loans, you'll have six months—or nine months for Federal Perkins Loans—after you graduate, leave school, or drop below half-time enrollment before you must begin making your loan payments. Take this time to make a plan for repayment.

Consider Loan Consolidation

A Direct Consolidation Loan allows you to combine all of your federal student loans into one loan with one monthly payment. Loan consolidation can be helpful if you have multiple servicers, loans from the Federal Family Education Loan (FFEL) Program, or Federal Perkins Loans. Loan consolidation can increase your chances of qualifying for an affordable repayment plan and loan forgiveness options, but it may not be the best option for you. Learn more about loan consolidation here: https://studentaid.ed.gov/sa/repay-loans/consolidation

Base Payments on Your Paycheck

If you want to lower your monthly payment or can't afford to make standard payments, select an Income-Driven Repayment Plan. Income-driven plans set your payment at a percentage of your income and will put you on a path to forgiveness. Qualifying payments can be as low as $0.

With income-driven plans, you'll be in repayment for up to 20 or 25 years. If your loans are not repaid in full after 20 or 25 years, the remaining balance will be forgiven. Estimate your payments and find the income- driven repayment plan that's right for you at:
studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action

If you don't select a specific repayment plan, your loan will be put on the Standard Repayment Plan. The Standard Repayment Plan determines your monthly payment without regard for your ability to pay that amount. You can switch to a different plan at any time by contacting your loan servicer, the company that manages your loan.

Loan Forgiveness Programs Specifically for Educators

Teachers may qualify for both of these forgiveness programs, but not for the same time period:

  • Teacher Loan Forgiveness Program: You may qualify for this program if you (a) teach full-time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families, and (b) meet other qualifications. To learn more about the Teacher Loan Forgiveness Program visit: studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/teacher
  • Public Service Loan Forgiveness (PSLF) Program: You may qualify for this loan forgiveness program if you are employed by a government or a not-for-profit organization in any capacity, which many educators are. You must make 120 qualifying payments under an income-driven plan to qualify. To learn more about PSLF visit: studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service

Other Resources

Better Make Room has recently released Up Next, which helps college students and graduates make informed decisions about the student loan process and repayment plans. To find out more, simply text the word COLLEGE to 44044 to receive free personalized updates, reminders and one-on-one advising.