Teacher Loan Forgiveness in California: 7 Options to Consider

Student loan debt is at the top of everyone's mind as higher education costs rise.As a teacher, reducing federal student loan debt eases financial stress.If you have federal student loan debt and work as a teacher in the state of California, you have options for managing it.The complex paperwork of teacher loan forgiveness programs in California can start to make your vision blur.

Below, each teacher loan forgiveness program is broken apart so you can see if you’re an eligible teacher.California teacher loan forgiveness programs Every teacher loan forgiveness program has eligibility requirements.The requirements for teachers are based on three criteria: How long you’ve been a teacher Where you teach What subject you teach In addition, your loans need to be in good standing, meaning not in default.You must have federal student loans such as Stafford Loans or Direct Loans, as these options don’t apply to private student loans.

It’s helpful to have a copy of your loan statements so you know what federal student loans you currently have.If you need to review your federal student loans, you can log into StudentAid.gov to view your loan details, locate servicer information or access your National Student Loan Data System (NSLDS) data file.1.Teacher Loan Forgiveness Program The Teacher Loan Forgiveness Program is a federal program that forgives $17,500 or $5,000 of student loan debt for borrowers depending on the subject you teach.

To be eligible for this program, you must: Teach full time for five consecutive years Teach at an eligible school or educational service agency Be a highly qualified teacher Not have an outstanding loan balance before Oct.1, 1998 To qualify for the highest amount of forgiveness, $17,500, you also need to be: A highly qualified mathematics or science teacher in a qualified secondary school Or A highly qualified special education teacher If you’re not a special education, science or math teacher, you can qualify for $5,000 of student loan forgiveness.The Teacher Loan Forgiveness Program is ideal for those with smaller amounts of debt who don’t plan on teaching long term.2.

Public Service Loan Forgiveness program The Public Service Loan Forgiveness (PSLF) program is meant for individuals who work full time in public service jobs, including teaching.It's one of the best federal student loan forgiveness programs for teachers.Why? Teachers can have the remaining balance of their federal student loans forgiven after 10 years of student loan payments.Your payments don’t need to be consecutive in this program.

If you leave teaching or move to a school that no longer qualifies for a period of time, your past payments will still be counted for the 120 required.To be eligible, you must: Make 120 qualifying monthly payments.Not be in default on any of your loans.Be employed full-time by a qualifying public service employer while making qualifying payments and when applying for forgiveness.

PSLF is open to many positions within schools, government agencies and nonprofits 501(c)s.If you’re a librarian or early childhood education teacher, you’ll want to investigate this further.PSLF is ideal for those who are going to stay in the profession or a qualifying position for at least 10 years.You’ll want to pursue PSLF instead of the Teacher Loan Forgiveness Program if you have a substantial amount of student loan debt.

3.Teacher Loan Cancellation Program This cancellation option is only for those with a loan from the Federal Perkins Loan program.You can qualify to have your entire Federal Perkins loan forgiven over the duration of five years.To be eligible, you must: Be an educator at a school serving low-income families, or Be a special education teacher, or Be an educator teaching mathematics, science, foreign language, bilingual education or another subject that has a teaching shortage.

During the five years, you must be teaching full-time.For many services, you will submit an application at the start and end of the school year.Each year, this program forgives a percentage of the Perkins Loan.This program is a no-brainer for anyone with federal Perkins Loans.

Even if you have additional federal student loans, you can still take part in this cancellation program alongside PSLF.California teacher scholarships and financial aid programs California offers specific grants and scholarships to assist teachers in completing their education.To be eligible for these programs, you must have completed the Free Application for Federal Student Aid (FAFSA).4.

Golden State Teacher Grant (GSTG) Program The Golden State Teacher Grant (GSTG) Program helps future California teachers pay for the cost of earning a teaching credential or completing an approved preparation program.Eligible students may receive up to $10,000 in grant funding in exchange for agreeing to teach at a qualifying California priority school after completing their program.To be eligible, you generally must: Be enrolled in an approved California teacher preparation program.Maintain satisfactory academic progress.

Commit to teaching at a qualifying California priority school after earning your credential.If you don’t fulfill the required teaching commitment, you may have to repay some or all of the grant funds received.5.Middle Class Scholarship The Middle Class Scholarship is for students who want to attend a University of California (UC), California State University (CSU) or California Community College (CCC) Bachelor's degree program.

If you’re an undergraduate student pursuing a teaching credential with family income and assets of up to $234,000, you’re eligible for this scholarship.The scholarship varies based on cost of attendance and all available resources awarded to the student, as well as the number of students eligible and allocated funding for the year.However, former foster youth are eligible to cover 100% of remaining COA after gift aid and “self-help” contribution are accounted for.If you’ve completed the FAFSA or California Dream Act Application (CADAA) and are accepted into UC, CSU or CCC bachelor's degree program, you’ll be considered for the scholarship.

6.Knowles Science Teaching Foundation Fellowship The Knowles Teaching Fellows Program supports those who completed a bachelor’s or advanced degree in science or mathematics and want to teach at the high school level.Fellows receive funding for their classroom and projects.Teaching Fellows receive stipends and grants throughout the year to help cover classroom materials or professional learning experiences.

The program is a five-year fellowship that awards more than $50,000 in financial support over the course of the fellowship.7.Teacher Education Assistance for College and Higher Education (TEACH) Grant Program The TEACH Grant Program is a federal program that isn't specific to the state of California.It can help you pay for college if you teach in a high-need field within a low-income school.

For those who qualify and are approved, you can receive up to $4,000 per year in assistance for school.You do sign an Agreement to Serve under this program to receive funds.All eligibility requirements and the application can be found on the U.S.Department of Education Federal Student Aid website.

Which California teacher loan forgiveness program is for you? If you’re still in school, you’ll want to focus on student aid and scholarships, but keep repayment programs in mind for your future.California is one of the highest-paying states for teacher salaries, but you’ll want to make sure you can afford the student debt in your career.A full list of scholarships and grants offered for California students can be found at CalGrants.If you’re entering the teaching profession or are a current teacher, look at your loan forgiveness options first.

Forgiveness programs can rarely be used simultaneously.Sometimes they can stack, but you’ll want to compare which opportunity might be better for your financial situation.For a personalized look at your student loan debt, reach out to our team.The Student Loan Planner® professionals work with teachers to create a realistic and manageable debt pay off plan.