Teacher loan forgiveness: complete guide

Teacher Loan Forgiveness is a federal program that cancels between $5,000 and $17,500 of eligible federal student loans for teachers who serve five consecutive years in a low-income school or educational service agency. For parents, understanding this program provides clarity on the long-term budget impact of a teaching career. For students and new teachers, it offers a concrete strategy to manage debt while building professional experience.

To qualify, you generally must teach full-time for five complete, consecutive academic years at a qualifying school. This benefit is distinct from Public Service Loan Forgiveness (PSLF), though both are valuable tools for educators. In this guide, you’ll learn exactly who qualifies, how to verify if your school is eligible, how to determine which forgiveness amount you are owed, and the specific steps to apply. We will also compare this program directly to PSLF to help you decide which path offers the best financial outcome for your specific loan balance.

Context: how teacher loan forgiveness works

The Teacher Loan Forgiveness (TLF) program was designed by Congress to encourage highly qualified individuals to enter and remain in the teaching profession, specifically in schools that serve low-income families. Unlike broader forgiveness programs that require 10 to 25 years of payments, TLF is focused on a shorter, five-year service commitment. Once a teacher completes this service requirement, they can apply to have a lump sum of their principal and interest forgiven.

The program applies exclusively to Direct Loans and Federal Family Education Loan (FFEL) Program Stafford Loans. It does not cover private loans or Perkins Loans. The structure is straightforward but rigid: you must complete the five years first, then apply. You do not apply before or during your service period. Once the application is submitted after your fifth year, processing typically takes 60–90 days as of 2025.

It is critical to note that this program operates differently than Public Service Loan Forgiveness (PSLF). According to StudentAid.gov, while PSLF forgives the entire remaining balance after 120 payments, TLF offers a fixed dollar amount of $5,000 or $17,500 after five years. Understanding this distinction early prevents teachers from accidentally disqualifying themselves from one program while pursuing the other.

Start here: teacher loan forgiveness eligibility checklist

Before banking on forgiveness, it is essential to verify that you and your loans meet the specific federal criteria. Use this checklist to determine if you are on the right track for Teacher Loan Forgiveness. If you cannot check every box, you may need to adjust your employment strategy or consider other options like income-driven repayment forgiveness.

• Eligible Loan Type: You have Federal Direct Loans (Subsidized or Unsubsidized) or FFEL Stafford Loans. PLUS Loans (including Parent PLUS) and Perkins Loans are not eligible.
• Loan Timing: Your loans were disbursed after October 1, 1998, and you had no outstanding balance on Direct or FFEL loans as of that date.
• Service Duration: You have taught (or plan to teach) full-time for five complete, consecutive academic years.
• Qualifying School: You teach at an elementary school, secondary school, or educational service agency that serves low-income students (listed in the TCLI directory).
• Highly Qualified Status: You meet the “highly qualified” teacher standards, which generally include having a bachelor’s degree, full state certification, and no waiver of licensure requirements.
• Status: You are not currently in default on the loans you want to be forgiven (unless you have made satisfactory repayment arrangements).

Meeting the “highly qualified” standard is a strict requirement. According to StudentAid.gov, this means you must have obtained full state certification as a teacher (including certification obtained through alternative routes) or passed the state teacher licensing examination, and hold a license to teach in that state. Emergency, temporary, or provisional certification does not count.

How to verify your school qualifies as low-income

One of the most common hurdles for applicants is verifying that their school qualifies as “low-income.” It is not enough to assume a school qualifies based on the neighborhood or district reputation. The school must appear in the official Teacher Cancellation Low Income (TCLI) Directory for the specific years you were employed there.

To verify eligibility, visit the TCLI Directory online. You can search by state, year, and school name. According to StudentAid.gov, a school qualifies if it serves children from low-income families and more than 30% of the school’s enrollment is made up of children who qualify for services under Title I of the Elementary and Secondary Education Act.

Crucial verification step: You must check the directory for each of your five years of service. Schools can fall off the list if their demographics change. If your school was eligible for the first year of your service but fell off the list in subsequent years, those later years may still count toward your five consecutive years, provided the school met the requirements when you started your qualifying service. However, you must verify this carefully.

If you believe your school should be on the list but isn’t, contact your school’s administration or the state education agency. They are responsible for reporting this data to the federal government. Do not proceed with an application until you have confirmed the school’s status in the directory.

Forgiveness amounts: $5,000 vs. $17,500

The amount of debt relief you receive depends entirely on the subject area you teach and the grade level. Most teachers qualify for the standard $5,000, but highly specialized teachers in high-need subjects can qualify for up to $17,500. It is vital to know which tier you fall into, as this may influence your decision to pursue this program over others.

According to StudentAid.gov, the higher forgiveness amount of $17,500 is reserved for three specific categories of teachers:

• Highly qualified full-time mathematics teachers at the secondary school level (generally grades 7–12).
• Highly qualified full-time science teachers at the secondary school level.
• Highly qualified full-time special education teachers at either the elementary or secondary level, whose primary responsibility is providing special education to children with disabilities.

All other eligible full-time elementary or secondary teachers who meet the basic eligibility criteria generally qualify for up to $5,000 in forgiveness. This includes teachers of history, English, art, foreign languages, and elementary school generalists. Note that the forgiveness amount applies to the aggregate of your loans; you cannot get $17,500 for one loan and another $5,000 for a different loan.

Source: StudentAid.gov (Teacher Loan Forgiveness Program details effective as of 2025)

Step-by-step application process

Once you have completed your five consecutive years of qualifying service, you are ready to apply. You cannot apply before the five years are finished. The application process involves paperwork that must be certified by your employer, so it is helpful to start gathering information as soon as your service period ends.

1. Download the Form: Obtain the official Teacher Loan Forgiveness Application from StudentAid.gov or your loan servicer’s website.
2. Complete Section 1: Fill out your personal information and details about your loans. You will need your loan account numbers.
3. Complete Section 2: Enter the dates of your qualifying service. You must list the specific academic years (e.g., “08/25/2019 to 06/15/2024”).
4. Get Employer Certification: This is the most critical step. The “Chief Administrative Officer” (typically your principal, superintendent, or HR director) at the school(s) where you taught must sign the form to certify your employment dates, full-time status, and subject area. If you taught at multiple schools during the five years, you may need separate forms certified by each school.
5. Submit to Your Servicer: Send the completed, signed form directly to your federal loan servicer (e.g., MOHELA, Nelnet, Aidvantage). Do not send it to the Department of Education or your school. If you have loans with different servicers, you must submit a separate form to each one.

As of 2025, processing typically takes 60–90 days. During this time, your servicer reviews the application to confirm your school’s eligibility in the TCLI directory and verifies your loan status. If approved, the forgiveness amount is applied to your outstanding balance. If you have any questions about where to send your form, refer to our guide to federal loan servicers.

Critical restrictions and common mistakes to avoid

While Teacher Loan Forgiveness is a powerful benefit, strict federal rules can trip up applicants. According to StudentAid.gov, the most significant restriction involves the interaction between TLF and Public Service Loan Forgiveness (PSLF): you cannot use the same period of teaching service to qualify for both programs. If you use five years to get $17,500 forgiven under TLF, those five years (60 months) are removed from your PSLF count. You would then need to work an additional 10 years to qualify for PSLF, effectively resetting your clock.

Avoid these common mistakes to ensure your application is approved:

• Applying too early: Do not submit your application until you have finished the very last day of your fifth academic year.
• Breaking the chain: The five years must be consecutive. If you take a year off or drop to part-time status, the clock resets to zero (with very limited exceptions for FMLA or military service).
• Assuming all federal loans qualify: Parent PLUS loans and Perkins loans are ineligible. While you can consolidate Perkins loans to make them eligible, doing so resets the five-year clock.
• Missing school verification: Failing to verify that your school was on the TCLI list for every year of service is a top reason for denial.
• Incomplete certification: Ensure the Chief Administrative Officer checks all appropriate boxes regarding your “highly qualified” status and signs the form with a wet signature if required by your servicer.

Teacher loan forgiveness vs. public service loan forgiveness for teachers

Teachers are in a unique position to choose between two major forgiveness programs. Choosing the wrong one can cost you thousands of dollars or years of additional payments. The decision largely comes down to your total loan balance and your career longevity.

Teacher Loan Forgiveness (TLF) is faster (5 years) but capped at a lower amount ($17,500 max). Public Service Loan Forgiveness (PSLF) takes longer (10 years/120 payments) but offers uncapped forgiveness of the entire remaining balance. For teachers with high debt loads—such as those with Master’s degrees—PSLF is often the mathematically superior choice, even though it takes longer.

Source: StudentAid.gov (Comparison of federal forgiveness programs)

You can use the PSLF Help Tool to simulate your eligibility. If you owe $40,000 and qualify for $17,500 in TLF, you would still owe $22,500. However, if you pursued PSLF, that full $40,000 (plus interest) would be forgiven after 10 years. Conversely, if you only owe $10,000, TLF is likely better because you can be debt-free in half the time. For more strategies, visit our Loan Forgiveness Hub.

Tax implications of teacher loan forgiveness

When planning your finances, it is important to consider the tax bill. The good news is that under current federal tax law, the amount forgiven under the Teacher Loan Forgiveness program is not considered taxable income. You will not receive a Form 1099-C for the forgiven amount, and you do not need to report it as income on your federal tax return.

However, state tax laws vary. As of 2025, most states follow the federal treatment and do not tax student loan forgiveness, but a handful of states may treat the forgiven debt as taxable income. It is highly recommended that you check with your state’s department of revenue or a qualified tax professional to confirm the rules in your specific state. Keep your forgiveness approval letter with your tax records indefinitely as proof that the debt was discharged.

Frequently asked questions

No, Teacher Loan Forgiveness applies only to federal Direct Loans and FFEL Stafford Loans. Private student loans do not qualify for this federal benefit. If you have private loans, you may need to look into refinancing options or lender-specific hardship programs.

Yes, summer breaks generally count toward the five-year requirement, provided you completed the full academic year before the break and returned to complete the next academic year (or your contract was fulfilled). You do not need to teach summer school for those months to count.

Generally, no. You must be employed as a full-time teacher. However, if you are a long-term substitute who meets the definition of a full-time teacher under your state’s laws and your school’s contracts—and you meet the “highly qualified” requirements—you may be eligible. Casual, day-to-day substitution does not qualify.

You can change schools without resetting your five-year clock, as long as the new school is also a qualifying low-income school listed in the TCLI directory and there is no break in your service. The years must remain consecutive.

Yes, these programs can work together. You can make payments on an income-driven repayment (IDR) plan while completing your five years of service. After receiving TLF, any remaining balance can eventually be forgiven under IDR rules (typically after 20 or 25 years of total repayment), provided you continue to meet IDR requirements.

Teacher Loan Forgiveness is a valuable reward for educators serving in high-need communities. By understanding the specific requirements and verifying your eligibility early, you can secure up to $17,500 in relief. Here are the key takeaways to remember:

• Verify Eligibility: Confirm you have eligible Direct or FFEL loans and that your school is listed in the TCLI directory for every year of service.
• Know Your Tier: Math, science, and special education teachers qualify for $17,500; most others qualify for $5,000.
• Plan Strategically: Compare your potential savings from TLF against PSLF. Remember you cannot “double dip” the same service years for both.
• Apply Correctly: Submit your application to your loan servicer only after completing five full, consecutive years.

If you discover that you do not qualify for Teacher Loan Forgiveness, or if you have private student loans that aren’t eligible for federal relief, you still have options to manage your debt.

• Federal loans offer income-driven repayment plans and forgiveness; private loans don’t.
• Checking rates uses a soft credit pull with most lenders; applying may use a hard pull.
• A creditworthy cosigner can lower rates.
• Typical fixed APR range: 5%–10% as of May 2025.

Compare private student loan refinancing rates from 8+ lenders — Trusted by 50,000+ students and families.

For more details on managing your debt, explore our federal loans guide or visit the Loan Forgiveness Hub.

References and resources

Use these official resources to verify your eligibility and manage your application:

• StudentAid.gov Teacher Loan Forgiveness Overview
• Teacher Cancellation Low Income (TCLI) Directory
• Official Teacher Loan Forgiveness Application
• PSLF Help Tool
• Federal Student Loan Servicer Contact Information