Douglas Olsen
With the rising costs of secondary education, many employers are now offering student loan repayment assistance as a benefit to attract and retain employees. While it may not be commonplace, it is on the rise, with about 36% of employers offering student loan repayment assistance in 2024. Some companies that offer this benefit include CommonBond, Connelly Partners, SoFi, and Aetna. Teachers, in particular, may qualify for loan forgiveness programs such as the Teacher Loan Forgiveness Program, which offers up to $17,500 in loan forgiveness for teachers who work in special education or underserved areas. Other government and non-profit jobs may also qualify for loan forgiveness programs such as the Public Service Loan Forgiveness (PSLF) program.
| Characteristics | Values |
|---|---|
| Teaching jobs that pay off student loans | Teachers who work in special education or underserved areas may qualify for the Teacher Loan Forgiveness Program |
| Amount of loan forgiveness | Up to $17,500 or $5,000, depending on the teacher's area of specialty |
| Qualifying employers for PSLF | Government organizations at any level (federal, state, local, or tribal) and non-profit organizations that are tax-exempt |
| Direct Loans required for PSLF | Yes |
| Loan forgiveness after | 120 qualifying payments (a minimum of 10 years) |
| Companies offering student loan repayment assistance | SoFi, Fidelity, Penguin Random House, Nvidia, Aetna, CommonBond, Connelly Partners, Staples, Abbott, RTX, Vanguard, Travelers Insurance, Chegg |
| Student loan repayment assistance amount | Up to $200 a month, $100 a month, $15,000, $5,250 per year, matching student loan payments, up to $100 a month, up to $12,000, up to $5,000 annually |
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What You'll Learn
Loan forgiveness programs for teachers
There are several loan forgiveness programs available for teachers in the US. These programs can help teachers manage their student loan repayments, although they may not expedite the repayment process. Here are some of the loan forgiveness programs available:
Teacher Loan Forgiveness (TLF) Program
The TLF Program offers loan forgiveness of up to $17,500 for teachers with Direct Subsidized and Unsubsidized Loans, as well as Subsidized and Unsubsidized Federal Stafford Loans. To qualify, teachers must complete five consecutive academic years of full-time teaching at an eligible school. At least one of those years must be after the 1997-98 academic year, and the teacher must have been a new borrower on or after October 1, 1998. Certain highly qualified special education, mathematics, and science teachers can qualify for the full $17,500 forgiveness amount, while other teachers can qualify for up to $5,000.
Public Service Loan Forgiveness (PSLF) Program
The PSLF Program is available to teachers who work for a qualifying employer, such as a government organization or a tax-exempt nonprofit organization. This program forgives the remaining balance on Direct Loans after 120 qualifying payments (approximately 10 years). Unlike TLF, PSLF does not require teachers to work at a low-income public school. To maximize forgiveness, some individuals may benefit from utilizing both the TLF and PSLF programs.
Perkins Loan Cancellation
Perkins Loan Cancellation is specifically for teachers with Federal Perkins Loans. This program can forgive up to 100% of Perkins Loans if the teacher works full-time at a low-income school or teaches certain subjects. Cancellation occurs in yearly increments of 15% per year for the first and second years of service, including accrued interest.
To determine eligibility and explore other potential loan forgiveness options, teachers can utilize resources such as the PSLF Help Tool, the Loan Simulator, and their federal loan servicer. Additionally, state-specific loan forgiveness programs may be available, so it is advisable to contact the relevant state education agency for further information.
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Student loan repayment assistance programs
Some of the companies that offer student loan repayment assistance programs include CommonBond, Connelly Partners, SoFi, and Staples. For instance, CommonBond offers up to $100 per month toward its employees' student loans, while Connelly Partners offers a similar amount of $100 per month and also provides a $1,000 signing bonus that can be put toward student loans. SoFi offers $200 a month in loan reimbursement, and Staples rewards its top performers with $100 per month of student loan repayment help.
In addition to these private companies, there are also government and non-profit organizations that offer student loan repayment assistance programs. For example, Public Service Loan Forgiveness (PSLF) is a program that forgives the remaining balance on qualifying federal student loans for people working in public service, including teachers. PSLF requires working for a qualifying employer, such as government organizations at any level (federal, state, local, or tribal) or certain tax-exempt nonprofit organizations. The Teacher Loan Forgiveness (TLF) Program is another option specifically for teachers, offering up to $17,500 in loan forgiveness for highly qualified special education, mathematics, or science teachers, and up to $5,000 for other eligible teachers. To qualify for TLF, teachers must complete five consecutive academic years in an eligible school, with at least one year after the 1997-98 academic year.
Other loan forgiveness programs for teachers vary by state, with many states offering loan forgiveness for teachers working in high-need or underserved areas. For example, teachers who work in special education or underserved areas may qualify for the Teacher Loan Forgiveness Program, with the amount of loan forgiveness depending on the teacher's area of specialty.
It is important to carefully research and compare the various student loan repayment assistance programs to determine which one best fits your circumstances, as some programs may impact your ability to take advantage of others.
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Student loan refinancing
When you refinance, you may qualify for a lower interest rate, which can make the loan more affordable in the long run. However, it's important to note that refinancing federal loans turns them into private loans, causing you to lose access to federal repayment programs and protections. For example, if you refinance federal loans with a SoFi loan, you will no longer be eligible for federal loan benefits, including flexible federal repayment and forgiveness options.
To qualify for refinancing with SoFi, you must fulfill all SoFi eligibility requirements. SoFi only refinances student loans totaling at least $5,000 that you used to fund tuition at an eligible Title IV-accredited school where you were enrolled at least 50% of the time. Loans currently being used to fund education for actively enrolled students are not eligible for refinancing.
If you're searching for the best student loan refinancing options, comparing lenders side-by-side can help you find a low rate and the right fit. Credible, for example, lets you compare personalized, prequalified offers from trusted lenders, including Earnest, SoFi, Citizens, ELFI, and more. You can get prequalified in minutes with a soft credit check and see real, personalized rates from top lenders with fixed APRs from 3.99% to 10.3% and variable APRs from 4.35% to 11.38%.
While refinancing can be a great option for some, it's not the best choice for everyone. It's important to consider your financial situation and goals when deciding whether or not to refinance your student loans.
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Student loan repayment assistance by employers
Educational assistance programs have been available for many years, but the option to use them to pay student loans has only been available for payments made after March 27, 2020, and will continue to be available until December 31, 2025. These programs allow employers to pay student loan debt and other education expenses tax-free. Payments made directly to the lender and those made to the employee qualify under these programs. By law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year.
Some companies that offer student loan repayment assistance programs include SoFi, Fidelity, Penguin Random House, Nvidia, CommonBond, Connelly Partners, and Aetna. Specific benefits vary by company. For example, CommonBond offers up to $100 per month toward its employees' student loans, while Connelly Partners offers up to $100 per month toward student loan payments and a $1,000 signing bonus. SoFi offers $200 a month in loan reimbursement, while Staples rewards its top performers with $100 per month of student loan repayment help.
In the teaching profession, there are also loan forgiveness programs available. Many states offer loan forgiveness programs for teachers, especially if they teach in a high-need area. Teachers who work in special education or underserved areas may qualify for the Teacher Loan Forgiveness Program (TLF), which forgives up to $17,500 of Direct Subsidized and Unsubsidized Loans and Subsidized and Unsubsidized Federal Stafford Loans after five complete and consecutive years of teaching at a qualifying school. PSLF is another option, which forgives the remaining balance on Direct Loans after 120 qualifying payments (a minimum of 10 years). Unlike TLF, PSLF does not require teachers to work at a low-income public school, but they must work for a qualifying employer, including government organizations at any level or tax-exempt nonprofit organizations.
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Student loan repayment plans
Some companies that offer student loan repayment assistance include:
- SoFi
- Fidelity
- Penguin Random House
- Nvidia
- Aetna
- CommonBond
- Connelly Partners
- Staples
- Abbott
- Vanguard
- Travelers Insurance
- Chegg
- RTX
Additionally, there are specific loan forgiveness programs for teachers. Many states offer loan forgiveness programs, especially if you teach in a high-need area. The Teacher Loan Forgiveness (TLF) Program forgives up to $17,500 of your Direct Subsidized and Unsubsidized Loans and Subsidized and Unsubsidized Federal Stafford Loans after five complete and consecutive years of teaching at a qualifying school. Certain highly qualified special education and secondary mathematics or science teachers can qualify for up to $17,500 in forgiveness. The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after 120 qualifying payments (a minimum of 10 years) and does not require you to teach at a low-income public school.
The U.S. Department of Education also offers income-driven repayment (IDR) plans that can lower your monthly payments and lead to debt cancellation.
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Frequently asked questions
Many states offer loan forgiveness programs for teachers, especially if they teach in a high-need area. Teachers who work in special education or underserved areas may qualify for the Teacher Loan Forgiveness Program, with loan forgiveness of up to $17,500 or $5,000 depending on the teacher's specialty. Teachers may also qualify for the Public Service Loan Forgiveness (PSLF) program, which forgives the remaining balance on Direct Loans after 120 qualifying payments.
Many companies offer student loan repayment assistance as an employee benefit. Some examples include SoFi, Fidelity, Penguin Random House, Nvidia, CommonBond, Connelly Partners, and Chegg. Additionally, jobs in the government or non-profit sector may qualify for PSLF.
You can use the PSLF Help Tool to confirm whether you qualify for PSLF and check if your previous payments have counted. You can also contact your federal loan servicer to explain your options and make any necessary changes to your repayment plan.
