FAFSA, Financial Aid and Student Loan Forgiveness for Teaching Students

Written by Randi Brookshire

Financial Aid for Aspiring Teachers

Aspiring teachers can apply for and obtain a variety of financial aid resources, from loans to renewable scholarships. In addition, the government offers teacher loan forgiveness to teachers who meet certain requirements. This article explores many of the main types of financial aid that are available, as well as some of the specific options for each. In order to obtain financial aid, teaching students need to complete the Free Application for Federal Student Aid (FAFSA) and send the results to their schools. Students can find vast amounts of other financial aid options by searching for them, as many scholarships are offered by private organizations. Lastly, there is a multitude of teaching positions and areas that are experiencing teacher shortages, and students can find out where these shortages are by using tools discussed in the final portion of this article.

Types of Financial Aid for Teachers

Several different types of financial aid are available to teaching students. Some types of financial aid need to be repaid or have certain criteria for earning them, while other types are awards or gifts. Teachers actually have more financial aid options than some other career areas. For example, a teacher can qualify for teacher loan forgiveness once they have taught a certain number of years, while a business manager does not have that opportunity.

The number of available financial aid options depends on several factors, including the state, the type of school that a teacher plans to teach at, and more. The sections below discuss the main types of financial aid that are available to teachers, which are scholarships, grants, work-study, and student loans. The table below summarizes the key characteristics of each of these four types of financial aid.

Scholarships for Teachers

There are countless scholarships available for teaching students. Scholarships are plentiful, but they can be hard to track down because they are offered by so many different entities. For example, students may find scholarships from their own colleges, as well as their employers, community businesses, and online resource sites. Scholarships that are awarded to students do not have to be repaid. In addition, scholarships do not typically have any contingencies that are not directly connected to a student's program (more on this below).

Scholarships are offered with different criteria for earning them. Some scholarships are available to all students everywhere, and scholarships from colleges are generally offered to students of those colleges. Many scholarships have some type of criteria that students need to meet in order to earn them. These criteria can include college program or major (such as teaching), geographic area (such as a state or county), ethnicity or religion (such as Hispanic American or Jewish students), and other considerations. One of the most common criteria that might be required for a scholarship is for students to have a specific GPA/academic performance. For example, one scholarship may require a student to have a 3.0 GPA while enrolled full-time.

Students may also need to complete one or more requirements as part of applying for a scholarship. This is not necessarily applicable to all scholarships, but most students should expect to furnish one or more requested documents. Scholarships with specific criteria (such as GPA, field of study, and so on) will require proof of a student's qualification. In many cases, this involves submitting an official transcript to the organization offering the scholarship. Students typically need to submit an essay as well, which may be meant to express the student's goals or answer a prompt from the scholarship application.

As noted previously, there are countless scholarships available to teaching students across the United States. Some scholarships are discussed and linked below. The U.S. Department of Labor also offers the Career One Stop Scholarship Finder, which is an excellent tool for finding scholarships and has more than 8,000 listed in its database.

• Mrs. Prindables Future Educator Scholarship - $1,000 is awarded to an education student for tuition and related expenses. A short essay and transcript are required.
• UNIGO Group Scholarships - UNIGO offers 13 different scholarships, ranging from $1,500 to $10,000, two of which are specifically geared toward education programs.
• Connecticut Trial Firm Education Accessibility Scholarship - This $1,000 scholarship is offered to students who are first-generation college students pursuing a program in education, whether undergraduate or graduate.
• AMS Teacher Education Scholarship - $34,000 is available to students enrolled in an American Montessori Society (AMS) affiliated program and are based primarily on financial need.
• CBC Spouses Education Scholarship - The Congressional Black Caucus (CBC) offers $2,500 to $20,000 to eligible Black and African-American students.
• Save a Life Scholarship - Available to education or healthcare students, this $1,500 award is offered twice per year.

Grants for Teachers

Grants are very similar to scholarships, but they are more commonly offered by the government, whereas scholarships are more often provided by private organizations and schools. Most grants are awards that students do not have to be paid back, but some grants do have to be repaid if students do not meet any obligations that are involved. For example, students awarded the TEACH grant that withdraw from their school before completing the required coursework may need to repay the grant funds.

The most common type of grants is federal government grants, with the Pell Grant being the most well-known. More information about grants is provided by the Federal Student Aid website. Students can also find information about grants through their colleges and online resource sites, such as the Career One Stop. Many grants that are offered by private organizations are designed for professional development and research, rather than college programs.

1. Federal Pell Grant - Available to undergraduate students or graduate teaching students, the Pell Grant varies based on financial need but has a maximum amount of $6,495 per year (as of the 2021-2022 school year).
2. TEACH Grant - The Teacher Education Assistance for College and Higher Education Grant is offered to teaching students and requires them to complete four years of teaching at a qualifying school, and has a $4,000 annual maximum.
3. Federal Supplemental Educational Opportunity Grant - The FSEOG (for short) offers between $100 and $4,000 to students based on financial need, and is awarded directly by colleges and universities.

Work-Study for Teachers

Teaching students can earn money for their college program by working part-time while in school. Students usually need to meet certain requirements, such as taking a specific number of courses each semester and cannot earn more through the program than they have been awarded. The specific number of hours worked, and money earned, depend on the student, position, and total award. Students on average earn around $1,900 per year through federal work-study. Money earned through work-study is paid directly to the student, rather than the school.

You might ask, what type of jobs are available? Jobs are offered off-campus and on-campus in a variety of different fields. Civic work and education, as well as positions that are related to the program of study, are prioritized when available. More information about the Federal Work-Study program can be found at this Federal Student Aid page. Students can inquire about available work-study positions by contacting their school's financial aid office.

Tuition Assistance and Reimbursement

In addition to the federal program, some students may qualify for tuition assistance and/or tuition reimbursement through their employers. A large majority of employers across the United States offer some type of tuition benefit to employees. Tuition assistance programs typically offer an amount of money towards an employee's college program as long as the program meets eligibility requirements. Students interested in employer tuition assistance should ask their employers, both current and potential.

Student Loans for Teachers

In addition to acquiring awards and work-study funds, students can take out loans to pay for their education. Unlike scholarships, loans do have to be paid back. While teachers do have some loan forgiveness options available to them (such as the teacher loan forgiveness program), student loans should only be used once all other financial aid resources have been exhausted. Students interested in using loans to fund their education should use federal loans before considering private student loans, as those offered by the government are well-regulated and offer flexible repayment options. More information about federal (government) student loans can be found at Federal Student Aid.

There are three main types of federal student loans: direct subsidized, direct unsubsidized, and direct PLUS. In addition, students can consolidate their loans into a direct consolidation loan. Throughout their college education, students can borrow up to $57,500 for undergraduate studies and $138,500 for graduate studies. Students are required to complete entrance counseling before receiving loans for their program and are also required to complete exit counseling upon completing their program. Each of these gives students an overview of what to expect and what their options are for acquiring the loans (entrance) and repaying loans (exit).

• Direct Subsidized - These loans are only offered to undergraduate students and are based on financial need. Interest does not accrue until 6 months after graduation.
• Direct Unsubsidized - These loans are offered to all students (undergraduate, graduate, and professional) and are not based on financial need.
• Direct PLUS - These loans are offered to professional and graduate students, are not based on financial need and require a credit check.

Overview of the Financial Aid Process for Teachers

In order to obtain financial aid for a teaching program, there are a few necessary steps. These are summarized in the table below, and expanded upon in the following sections. For most financial aid, students will need to complete the FAFSA. There are some scholarships that students may be able to obtain without completing this application, but it greatly expands the pool of financial aid options. The FAFSA results are used to determine eligibility for various types of aid.

Students will be notified through the Student Aid Report (SAR) about the types and amount of aid that they qualify for (if any), but most scholarships and some other aid types must be manually applied for. It is recommended that students conduct online searches and ask local businesses about any scholarships that might be available, as many of them are offered by smaller organizations (and are not widely advertised/known). Once a student is aware of what aid they have available to them, they should carefully review and select which aid to use. Students can continue applying for and obtaining financial aid throughout their programs.

1. Complete the FAFSA
2. Submit FAFSA Results to Your Schools
3. Look for Other Financial Aid Resources
4. Complete Your Program and Review Financial Aid Usage Each Year
5. Apply for Teacher Loan Forgiveness

Step 1: Complete the FAFSA

Most financial aid options require students to have completed the Free Application for Federal Student Aid (FAFSA). As the name implies, the FAFSA is free and enables students to apply for all federal financial aid options at once. In addition, the completed FAFSA can be used to apply for other types of aid. Students will need to complete the FAFSA each year to maintain financial aid and qualify for any new aid. More information about the FAFSA can be found on the Federal Student Aid FAFSA page.

The first time that a student completes the FAFSA, they will need to have various information ready and will need to obtain a FSA ID (a Social Security number is required). Students can save the FAFSA and return to it as needed. Dependent students will also need to have some information about their parents for the application and they will also need to obtain a FSA ID. The FAFSA offers a direct import tool for IRS information that speeds up the process of locating and entering some of the needed information. Once the application has been submitted, students may see some of the aid that they qualify for based on preliminary results (such as the Pell Grant) but will know more about what aid they qualify for when they talk to their school representatives and receive their Student Aid Report (SAR).

Step 2: Submit FAFSA Results to Your Schools

During the application process, students have the opportunity to add their school(s) into the FAFSA. Doing so means that those schools will be sent their results directly once the FAFSA is complete. If a student finds a school that they like after completing the FAFSA, they can go back into the application and add that school to it. The FAFSA allows students to add up to twenty schools to the list. Students can look their schools up within the appropriate portion of the FAFSA, enabling them to notify all of their candidate schools of their financial aid eligibility.

Once a school's financial aid office receives the student's FAFSA results and Student Aid Report (SAR, a representative will reach out to the student. Students usually receive an overview of what aid types they qualify for (sometimes called an award letter). Students should talk with their financial aid office to determine what aid they should use first, and what aid can be omitted (if any). For example, if a student receives a scholarship and a loan that together is worth more than the expected costs, the student should use the scholarship completely before using the borrowed aid.

Step 3: Look for Other Financial Aid Resources

Because the FAFSA only automatically applies students for federal aid, students need to look for aid through other avenues. Students can begin looking for scholarships well in advance of their planned program, as well as once they have begun their program. Scholarships and other aid typically have set deadlines, so it is beneficial for students to look for aid ahead of time. Students can ask about institutional aid (direct from colleges) when speaking with their financial aid offices.

As noted before, scholarships are available through countless avenues. Some scholarships might be easier to find while others may require more legwork. Scholarships from smaller organizations aren't typically advertised, whereas scholarships backed by large organizations are more likely to have more public awareness. Dozens of different websites offer a list of scholarships, but not all of them are maintained. For example, a site might have a list of scholarships, but they may not all still be available or active.

Some states have a database of scholarships offered. Although they are not comprehensive, they can be a good starting point. The Career One Stop is also a great resource, as it features thousands of scholarships and is offered by the U.S. Department of Labor.

Step 4: Complete Your Program

During a program, students are not required to make any student loan payments. Subsidized loans do not accrue interest while students are in school, but unsubsidized loans do accrue interest during a program. Students may need to take a certain number of credit hours and/or maintain a minimum GPA in order to remain eligible for some of their financial aid. Students participating in work-study will also need to work part-time to continue earning those funds.

While in school, students can continue to look for scholarships and other aid. Only a small percentage of scholarships are designed specifically for first-year students. As the program progresses, students may discover and qualify for new scholarships and other aid. It is important for students to discuss their financial aid situation each semester with the financial aid office, and discontinue any unneeded student loans. As graduation approaches, students with loans will complete a short online tutorial called 'exit counseling' that explains the different types of repayment options and their structures.

Step 5: Teacher Loan Forgiveness

This section specifically addresses student loans, repayment, and forgiveness options for teachers. There are a few different methods available for loan forgiveness, each of which are discussed below. It is important to note that there are different repayment plans for loans, and the repayment plan chosen can determine which forgiveness options an individual is eligible for. Before discussing the forgiveness options, the repayment options are first explained. Students will select a repayment option when they complete their exit counseling and can change their plans at any time. In addition, students often complete recertification every year, which allows them to see if a different plan has become a better option.

Student Loan Repayment Options

• Standard Repayment Plan - This plan is offered in a 10-year and 30-year format, and is available to all borrowers. This plan involves a fixed payment amount over the course of repayment. This type of plan used with consolidated loans or as the 10-year option is not eligible for PSLF (forgiveness). This plan does typically save money over the course of repayment (compared to other repayment plans).
• Graduated Repayment Plan - Available to all borrowers, this plan is also offered in 10-year and 30-year formats. The payment amounts increase periodically, often in two-year intervals, enabling students to pay off loans within the time frame. This plan is typically ineligible for PSLF and costs more in interest over time than the standard plan.

Student Loan Forgiveness Options

As noted in the repayment options sections, students can qualify for forgiveness directly through their choice of repayment plan. The repayment plan forgiveness applies to the balance left from the original loans, not to the interest. A student that selects IBR, for example, will have loans forgiven after 25 years but still be responsible for any interest remaining for those loans. In addition to forgiveness that is available through repayments, borrowers can qualify for other types of forgiveness. Two types of loan forgiveness are especially applicable to teachers, and other types are also discussed below.

Teacher Loan Forgiveness

Teachers can have up to $5,000 or $17,500 of their loans forgiven, depending on the subjects that they teach. To qualify, teachers much teach for five complete years at an educational agency, elementary school, or secondary school that provides service to low-income students. (More information can be found on the Teacher Loan Forgiveness page from Federal Student Aid.

Public Service Loan Forgiveness (PSLF)

PSLF forgives the balance remaining on a loan after the borrower has made 120 qualifying payments (monthly). The individual must be a full-time government employee that is on an income-based plan. Borrowers cannot qualify for PSLF until after making 120 payments, so 10-year repayment plans are not compatible. See Public Service Loan Forgiveness for more information.

Other Types of Loan Forgiveness

More information can be found at Federal Student Aid.

• Closed School Discharge - This may apply if a school closes while a student is enrolled in their program or shortly after they have graduated.
• Perkins Loan Discharge and Cancellation - Based on employment and service, loans may be cancelled/discharged (Perkins loans only).
• Disability / Death Discharge - Students who become disabled may qualify for loan forgiveness, and loans are discharged for borrowers who pass away.
• Bankruptcy Discharge - On rare occasions, students may qualify to have their loans discharged if they file for bankruptcy.
• Borrower Defense - This may apply if a school promised something that was not delivered (such as specific job guarantees).
• False Certification Discharge - This relates to a school filing false eligibility documents, acquiring loans that a student should not have qualified for.
• Unpaid Refund Discharge - A student that withdraws and does not receive a refund (when they should) may qualify to have that amount discharged.

Outlook for Teaching Positions

As the population continues to increase, so does the need for educators. The U.S. Bureau of Labor Statistics (BLS) expects the field of education, training, and library positions to increase by more than 920,000 jobs between 2020 and 2030. The areas in which there is a teacher shortage, those with the largest expected increase in jobs, are discussed below. Keep in mind that students interested in teacher loan forgiveness should look for qualifying teaching positions that service low-income areas. All career data is provided by the BLS Occupational Outlook Handbook.

Special Education Teachers

Special education teachers teach and work with students that have disabilities, such as mental and physical disabilities. These teachers can work with early learners in preschool through twelfth grade. Their duties include assessing and coaching students, developing individualized education plans, meeting with parents, and collaborating with other teachers. Special education teachers typically need to have a bachelor's degree (or higher) along with a state teaching license. Some positions may require candidates to have a degree in special education, while a related degree (such as education) is sufficient for some other positions.

Preschool Teachers

Preschool teachers work with students who are five years old and younger, before they enter kindergarten. Their duties include organizing class activities and lessons, teaching foundational skills (such as colors), maintaining records, and watching for any developmental issues. Most preschool teaching positions require an associate's degree or higher, and some states require them to acquire the Child Development Associate (CDA) license. BLS is projecting that the largest growth in education jobs will be preschool teachers, with an expected 86,400 more jobs by 2030.

Kindergarten & Elementary School Teachers

Kindergarten and elementary school teachers typically teach students from kindergarten to fifth grade. They teach students a broad range of subject material, including reading, mathematics, and science. Their duties can include developing and implementing lessons, communicating with parents, readying students for standardized tests, and supervising students outside of the classroom (such as in the cafeteria). Most of these teachers need to have a bachelor's degree, and those teaching in public schools are required to obtain state licensure.

Middle School Teachers

Middle school teachers usually work with students that are in grades sixth through eighth, although this can vary by school. Middle school teachers usually teach a specific subject area, such as mathematics or science. Their duties can include evaluating and grading students, developing lessons and activities, prepping students for end-of-year testing, and maintaining classroom rules. Middle school teachers usually need to have a bachelor's degree in the subject area that they teach, such as mathematics. Some employers may prefer a candidate with a degree in elementary education, or accept similar degrees. Middle school teachers who teach at public schools need to have state licensure.

High School Teachers

High school teachers instruct the highest grades in K-12, usually ninth through twelfth. They usually teach a specific subject area, instructing different classes throughout the day that fall under the umbrella of their specialty. Their duties can include collaborating with other teachers, providing feedback and guidance to students, and preparing students for life after high school. High school teachers usually need a bachelor's degree or higher, and those teaching for public schools need to have a state teaching license. Many employers seek teachers who have a degree in their area of focus, while others may prefer an education degree or some combination of the two.

Instructional Coordinators

Instructional coordinators work with teachers and other professionals and oversee the standards of teaching as well as curriculum for their school. Their duties can include reviewing and creating educational materials, overseeing teacher training, reviewing student performance, and suggesting curriculum changes. Instructional coordinators may specialize in a certain subject area (like math) or grade level. Instructional coordinators that work in public schools need to have a master's degree in a field such as curriculum and instruction or education. In addition, some states and schools require instructional coordinators to obtain a teaching license.

Postsecondary Teachers

Postsecondary teachers provide instruction to students beyond high school, in settings such as colleges, universities, and other facilities. They usually have an area of specialization and teach classes within that area. Postsecondary teachers that have tenure are typically referred to as professors. The duties of postsecondary teachers can include creating a course outline, developing and communicating lectures, grading students, and maintaining up-to-date knowledge about their specialty area. Professors may also conduct and publish scholarly research. Most of these positions require a doctoral degree, but some community college teaching positions require a master's degree.

Finding Areas with a Teacher Shortage

There are multiple avenues that teachers can take to find open positions as well as teacher shortages. First, an individual should consider whether they would prefer to stay in-state (or in a specific area), or if they are interested in moving in order to address a key teacher shortage area. Teachers who prefer to stay within their states can find teaching positions and job postings through their state employment sites as well as state board of education sites. For example, teachers who wish to work in Georgia can find open positions through the Teach Georgia website.

To find out which teaching fields have the greatest demand nationwide, individuals can look through the extensive information provided by BLS in the Occupational Outlook Handbook (OOH). Expected national job growth is broken down into growth per industry under the 'Job Outlook' tab and 'Get data' hyperlink. For example, a growth of 18.4% is expected for preschool teachers across the United States. Some industries are expected to have much higher growth for preschool teaching positions, such as private educational services (25.8%) and fitness and recreational sports centers (48.3%), whereas other industries are expected to see a decline in the number of positions (such as self-employed teachers, state schools and junior colleges).

A great resource for identifying shortage areas for teachers is the U.S. Department of Education's Teacher Shortage Areas (TSA) site. This site allows you to search for teacher shortages across the nation, or narrow down your search with filters (state, teaching subject, etc.). A quick search using the TSA tool yielded around 1,600 different results for the 2022-2023 school year, which include teaching and other positions in K-12 schools. For example, there are currently 17 shortages listed in Wood County, West Virginia, including social studies (5-12), Health and P. E. (pre-K through 12), and special education (pre-k through 12). The TSA, state sites, the Department of Labor, and many other sites can provide students with information about current and expected teacher shortages.

To fill these open teaching positions, future teachers will need to earn your teacher certification by taking an exam like the Praxis. There are several routes students can take to earn and prepare for their certification, this guide is designed to help students with financial aid, but PraxisExam.org has also developed comprehensive practice tests for the Praxis Core and Praxis II exams that can be incredibly beneficial for students preparing for teaching in the classroom.