Savanna Hoffman
There are a variety of career paths that can help pay off student loans. For example, in the healthcare industry, physicians, surgeons, anesthesiologists, GPs, psychiatrists, dentists, behavioral health professionals, and nurses have several loan forgiveness programs available to them. Lawyers who work for LSC-funded legal aid organizations can also qualify for loan forgiveness. Many public service and nonprofit jobs are eligible for Public Service Loan Forgiveness (PSLF), and teachers can qualify for the Teacher Loan Forgiveness (TLF) Program, which forgives up to $17,500 of eligible loans after five years of teaching. Pharmacists, IT managers, and financial managers are other well-paying jobs that can help pay off student loans faster.
Characteristics of teaching jobs that will pay back student loans
| Characteristics | Values |
|---|---|
| Loan Forgiveness Amount | Up to $17,500 |
| Qualifying Loan Types | Direct Subsidized and Unsubsidized Loans, Federal Stafford Loans |
| Teaching Requirements | 5 complete and consecutive academic years, at least 1 year after 1997-98, new borrower after Oct. 1, 1998 |
| Qualifying Schools | Low-income schools, educational service agencies |
| Qualifying Subjects | Special education, secondary mathematics or science |
| Additional Benefits | Some states or districts offer incentives on top of federal programs |
| Other Public Service Loan Forgiveness Options | Government jobs (IT, health, law enforcement), nonprofit organizations |
| Healthcare Provider Options | National Health Service Corps Loan Repayment Program for underserved areas |
| Legal Profession Options | Legal Services Corporation (LSC) program for attorneys at legal aid organizations |
| Military Options | Army loan repayment for specific Military Occupational Specialties (MOSs) |
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What You'll Learn
Teacher Loan Forgiveness Program (TLF)
The Teacher Loan Forgiveness Program (TLF) is a federal program that offers loan forgiveness to teachers who work in designated low-income schools or educational service agencies. The program is designed to encourage teachers to work in areas with a high need for educators and provides up to $17,500 in loan forgiveness for eligible candidates. To qualify for TLF, teachers must have been employed full-time for five complete and consecutive academic years, including at least one year after the 1997-98 academic year. Additionally, they must have started their loan borrowing on or after October 1, 1998.
TLF is applicable to certain types of loans, including Direct Subsidized and Unsubsidized Loans, as well as Subsidized and Unsubsidized Federal Stafford Loans. However, it is important to note that Direct PLUS Loans, FFEL PLUS Loans, and Perkins Loans are not eligible for forgiveness through this program. To maximize the forgiveness amount, teachers can apply for a TLF forbearance, which allows them to defer monthly loan payments, although interest will still accrue.
Certain highly qualified special education, mathematics, or science teachers may be eligible for the higher amount of $17,500 in loan forgiveness. This applies to teachers working in eligible low-income schools. To determine if a school qualifies as low-income, one can consider whether it has a student population with more than 30% poverty, participates in the federal Free and Reduced Price Lunch (FRPL) program, or serves special needs students.
It is important to note that TLF is a separate program from the Public Service Loan Forgiveness (PSLF) Program, and individuals cannot receive benefits under both programs for the same period of teaching service. However, in rare situations, borrowers with higher loan balances and lower annual gross incomes may benefit from both programs sequentially, such as receiving TLF after 5 years and PSLF after 15 years.
To apply for the TLF Program, individuals should submit their applications directly to their lender, usually through their online account portal. It is essential to ensure that the school name provided on the application matches the school name listed in the Teacher Cancellation Low-Income (TCLI) directory to avoid application denial. Additionally, teachers in New York City schools may need to go to the district office for employment certification instead of having the principal sign the TLF form.
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Public Service Loan Forgiveness Program (PSLF)
The Public Service Loan Forgiveness (PSLF) Program was established by Congress in 2007 to encourage Americans to enter the public service sector. The program promises to forgive the remaining balance on Direct Loans after 120 qualifying payments (a minimum of 10 years).
To be eligible for PSLF, you must work for a qualifying employer, which includes government organizations at any level (federal, state, local, or tribal) and certain types of nonprofit organizations. Specifically for teachers, the PSLF Program does not require you to teach at a low-income public school, which may be a requirement for other loan forgiveness programs.
If you have other types of federal loans, such as Federal Family Education Loans (FFEL) or Federal Perkins Loans, you must consolidate them to qualify for PSLF. It is important to note that consolidating loans may affect previous payment counts, and any payments made toward FFEL loans before consolidation will not count toward PSLF.
You can use the PSLF Help Tool to confirm your eligibility and check if your previous payments have counted toward the 120-payment requirement. Additionally, you should consider repaying your loans on an income-driven repayment (IDR) plan to maximize the benefits of PSLF.
It is worth mentioning that the PSLF Program has faced some criticism and undergone revisions to exclude organizations that engage in activities considered harmful to national security and American values.
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Qualifying for both TLF and PSLF
If you are a teacher with federal student loans, you may be eligible for loan forgiveness through the Teacher Loan Forgiveness (TLF) and Public Service Loan Forgiveness (PSLF) programs. However, it is important to note that you cannot qualify for both TLF and PSLF for the same period of teaching service due to the "double benefits" provision. Here are the details on qualifying for both programs at different times:
Qualifying for Teacher Loan Forgiveness (TLF):
TLF offers loan forgiveness for eligible teachers who have completed five complete and consecutive academic years as full-time teachers at a qualifying school. To receive the maximum forgiveness amount of up to $17,500, you must teach at a low-income school, and your loans must be Direct Subsidized, Unsubsidized, or Subsidized and Unsubsidized Federal Stafford Loans. Certain highly qualified special education, mathematics, or science teachers may also be eligible for the higher forgiveness amount. To maximize your forgiveness, you can apply for a TLF forbearance, which allows you to temporarily pause your loan payments, although interest will still accrue.
Qualifying for Public Service Loan Forgiveness (PSLF):
PSLF forgives the remaining balance on eligible Direct Loans after 120 qualifying payments (at least 10 years). Unlike TLF, PSLF does not require you to teach at a low-income school. Instead, you must work for a qualifying employer, including government organizations at any level or certain tax-exempt nonprofit organizations. To maximize the benefit of PSLF, you should repay your loans through an income-driven repayment (IDR) plan. You can use the PSLF Help Tool to confirm your eligibility and track your qualifying payments.
Strategies for Qualifying for Both TLF and PSLF:
While you cannot qualify for both TLF and PSLF for the same period, some teachers may benefit from both programs at different times. For example, you could receive TLF after five years of teaching and then continue making payments toward PSLF, eventually receiving forgiveness under that program as well. This strategy may be ideal if you have a higher loan balance and a lower annual gross income. To navigate these options, you can seek guidance from student debt experts or use online tools like the Loan Simulator to compare the total costs under each program.
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Loan forgiveness for special education teachers
If you are a teacher with federal student loans, you may be eligible for loan forgiveness through the Teacher Loan Forgiveness (TLF) Program or the Public Service Loan Forgiveness (PSLF) Program.
Teacher Loan Forgiveness (TLF) Program
The TLF Program forgives up to $17,500 of your Direct Subsidized and Unsubsidized Loans and Subsidized and Unsubsidized Federal Stafford Loans. To qualify for this amount, you must be a highly qualified special education, mathematics, or science teacher. Other eligible teachers can qualify for up to $5,000. To qualify for TLF, you must meet the following requirements:
- Be employed as a full-time teacher at an eligible school for five complete and consecutive academic years.
- At least one of those years must have been after the 1997–98 academic year.
- You must have been a new borrower on or after October 1, 1998.
- You must teach at a low-income school or teach certain subjects, including special education.
Public Service Loan Forgiveness (PSLF) Program
The PSLF Program forgives the remaining balance on your Direct Loans after 120 qualifying payments (a minimum of 10 years). Unlike TLF, PSLF does not require you to teach at a low-income public school. Instead, you must work for a qualifying employer, such as a government organization or a tax-exempt nonprofit organization.
It is important to note that you may not receive benefits under both the TLF and PSLF programs for the same period of teaching service. However, in rare situations, you may benefit from both programs, such as receiving TLF after 5 years and PSLF after 15 years.
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Other high-paying jobs to pay off student loans
For those with student loans, teaching can be a good career option, as there are several loan forgiveness programs available for teachers in the US. The Teacher Loan Forgiveness (TLF) Program, for example, provides up to $17,500 in loan forgiveness for highly qualified teachers in certain subjects who complete five consecutive academic years in an eligible school. The Public Service Loan Forgiveness (PSLF) Program is another option, which forgives the remaining balance on Direct Loans after 120 qualifying payments, and does not require teachers to work in low-income public schools.
However, if you are looking for other high-paying jobs to help pay off your student loans, there are several options:
- Healthcare professionals: Physicians, surgeons, anesthesiologists, and GPs often have high student loan debt due to the length and cost of their education. However, their first-year salaries can be around $210,000, which can help pay off loans quickly. Psychiatrists, who often work in private outpatient facilities, are also in this category.
- Computer Systems or Information Technology Managers: With a bachelor's degree and some work experience, IT managers can earn around $125,000 per year. Internships during school can help fast-track entry into this career.
- Pharmacists: After pharmacy school and licensing exams, pharmacists can earn around $120,000 per year.
- Financial Managers: For students who enjoy working with numbers and managing money, a degree in finance and a career as a financial manager can be lucrative.
- Air Traffic Controllers: Air traffic controllers need to be detail-oriented and have strong problem-solving and organizational skills. With a bachelor's degree and additional courses, they can earn around $110,000 per year.
- Software Developers: Students interested in software development should pursue a degree in computer science and gain hands-on experience through internships. Salaries in this field tend to start just under $100,000.
- Analytics Managers: Data-minded students can become analytics managers by pursuing a bachelor's degree in math, IT, statistics, or a related area. Analytics managers help companies make informed decisions based on statistical analysis and can earn between $80,000 and $90,000 per year.
Additionally, some employers offer student loan forgiveness or repayment assistance programs, so it is worth considering companies or sectors that provide these benefits. Federal government agencies, such as NASA, the Department of Energy, and the Department of Transportation, offer repayment assistance. Working in the public service sector may also provide access to repayment assistance programs.
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Frequently asked questions
The Teacher Loan Forgiveness Program (TLF) offers forgiveness of up to $17,500 on eligible loans after five complete and consecutive years of teaching at a qualifying low-income school.
Some of the highest-paying teaching jobs include pharmacists, who earn around $120,000 a year, and physicians, who can expect a starting salary of about $210,000.
Yes, there are several other loan forgiveness programs available, such as the Public Service Loan Forgiveness (PSLF) Program, which includes a wider range of careers that qualify for loan forgiveness.
