Student Loans for Teachers

If you need to take on student debt to pay for a teaching degree, you’re not alone. More than half of educators took on debt to pay for college. The average borrowed amount is $58,700, according to a 2021 National Education Association report.

Before you take out a student loan, it’s important to understand your options. Here’s what to know about student loans for teachers, including which type of loans to consider first and how to apply.

Student loans for teachers

The two types of student loans are federal and private. You can use student loans to cover tuition and other school-related expenses, such as books or room and board.

The U.S. government funds federal loans. Borrowers can get private student loans from private financial institutions, including banks, credit unions, and online lenders.

Because federal loans include benefits such as access to student loan forgiveness programs and income-driven repayment plans, we recommend you exhaust your federal loan options before considering private loans.

	Federal student loans	Private student loans
Credit check required?	✖️	✔️
Must fill out FAFSA?	✔️	✖️
May need a cosigner?	✖️*	✔️
Financial need-based approval?	✔️**	✖️
Income-based repayment options?	✔️	✖️

Federal student loans for teachers 

If you want to study teaching, several federal loans can help you pay for school. Let’s examine your options.

Direct Subsidized Loans

Direct Subsidized Loans are available to undergraduates with particular financial needs. While you’re in school, the U.S. Department of Education pays for the interest on the loan. You can borrow up to $23,000 in Subsidized Loans as an undergraduate student.

Direct Unsubsidized Loans

These loans are available to undergraduate and graduate students regardless of financial need. Unlike Subsidized Loans, you’re responsible for paying interest on the loan while you’re in school. Because they aren’t based on financial need, the federal government doesn’t subsidize or pay the interest. 

You can borrow $5,500 to $7,500 each year if you’re a dependent student. And if you’re an independent student, you can borrow $9,500 to $12,500 per year as an undergraduate student and up to $20,500 per year as a graduate student.

Grad PLUS Loans

Grad PLUS loans are available to graduate and professional students. Unlike Unsubsidized and Subsidized Loans, a credit check is required.

With a Grad PLUS Loan, you can borrow up to your school’s cost of attendance minus any financial aid you receive.

Parent PLUS Loans

Your parents can take out a Parent PLUS loan to help you pay for school. Similar to Grad PLUS loans, Parent PLUS loans require credit checks. If your parents qualify, they can borrow up to your school’s cost of attendance minus any financial assistance you receive.

Our expert’s recommendation

Erin Kinkade

CFP®

The most common mistake I see is borrowers assuming they are automatically forgiven and not confirming it. If they’re mistaken, the results can be late payments, fees, and a negative impact on their credit report and credit score. The best way to avoid mistakes is to try not to assume anything and try to verify everything. 

4 private student loans for teachers

After you exhaust your federal loan options, consider taking out a private loan to fill any funding gaps. Make sure to shop around to find the best deal for your situation.

Unlike most federal student loans, private student loans require credit checks. If you have poor credit or no credit history, you may need to apply with a cosigner with better credit.

Here are four private student loan options to consider.

Lender	Rates (APR)	LendEDU rating (out of 5)
Sallie Mae	4.50% – 16.70%	4.7
College Ave	4.07% – 16.69%	4.8
Ascent	4.09% – 16.08%	4.7
Earnest	4.36% – 16.20%	4.7

Sallie Mae – Best for cosigners

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LendEDU rating: 4.7 out of 5

• Cosigner release after 12 months of consecutive on-time payments
• Repayment options include deferred fixed and interest-only repayment
• Get a decision within 15 minutes

Sallie Mae offers undergraduate and graduate loans to pay for your teaching degree. You can choose a 10- or 15-year repayment term and borrow up to your school’s cost of attendance.

Fixed and variable interest rates are available, with rates ranging from 4.50% to 16.70% APR. If you’re late making a payment, the fee is 5% of the amount due, with a maximum fee of $25. 

College Ave – Best overall

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LendEDU rating: 4.8 out of 5

• Competitive interest rates
• Choose your repayment term
• 4 in-school repayment options

College Ave offers undergraduate and graduate student loans. Loan amounts range from $1,000 to up to your school’s cost of attendance, and you can choose repayment terms between five and 15 years.

Rates vary depending on whether they’re fixed or variable and whether you’re in an undergraduate or graduate-level teaching program. Expect to pay between 4.07% and 16.69% APR. 

Once you start making payments, make sure to pay on time. Late fees vary by the amount due and the number of days late, and they could add up fast. 

Ascent – Best for eligibility

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LendEDU rating: 4.7 out of 5

• Cosigned and non-cosigned student loans for undergrad and grad students
• Outcomes-based loans for juniors and seniors
• Funds all the way through Ph.D. programs

Ascent offers undergraduate and graduate student loans. You can borrow from $2,001 up to your school’s cost of attendance. Repayment terms range from five to 15 years.

Rates start at 4.09% and go up to 16.08% APR. The unique non-cosigned outcomes-based student loan is designed for juniors and seniors with at least a 3.0 GPA and a credit history.

Earnest – Best for no fees

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LendEDU rating: 4.7 out of 5

• Choice of loan terms
• Grace period of 9 months after graduation
• Skip 1 payment annually once you begin repayment

Earnest offers undergraduate and graduate loans with no fees. You can borrow as little as $1,000 up to your school’s cost of attendance. Earnest gives you a payment grace period of nine months after you graduate, but interest still accrues on the loan.

Aspiring teachers can use Earnest for undergraduate and graduate degrees. Rates start at 4.36% APR for fixed loans with a cosigner. 

Enrolling in automatic payments qualifies you for a 0.25% rate discount. Earnest doesn’t charge late fees if you miss a payment due date. 

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Best private student loans

How to apply for student loans for teachers 

As you prepare to enroll in your teaching program, follow these steps to apply for your student loans. 

1. Complete the Free Application for Federal Student Aid (FASFA): Fill out the FAFSA before the annual deadline to apply for federal student loans. The federal FAFSA deadline for the 2024 – 2025 academic year is June 30, 2025. Your state or the college you attend may have separate deadlines, so check with both.
2. Gather your documentation: Here’s the information you’ll need to complete the FAFSA: tax returns (parents’ tax returns if you’re a dependent student), Social Security number (SSN) (your parents’ SSN if you’re a dependent), and your driver’s license number, if applicable.
3. Wait for your award letter: Once you complete the FAFSA, your school will send you a financial aid award letter, which might include federal loans you qualify for. Then you can choose whether to accept the loan.
4. Consider private student loans: Next, consider whether you want to apply with a private lender to fill in funding gaps. Gather quotes from multiple lenders before you choose the best one.
5. Submit a formal application: After choosing a private student loan, you’ll need to complete an application. The process varies by lender, but you and your cosigner might need to provide the name of your school, tax returns, Social Security number, recent pay stubs, and the monthly amount you pay for housing.

Teacher student loan repayment 

Your monthly repayment amount is based on several factors, such as your repayment term, interest rate, and loan. 

But here’s what your payment could look like with the average educator’s $55,800 undergraduate federal student loan. (We assumed a 10-year standard repayment term and a fixed 4.99% interest rate.)

Loan balance	$55,800
Monthly payment	$592
Total interest paid	$15,189
Total borrowing costs	$70,989

To estimate your payments, use our student loan payment calculator.

Keep in mind: You may qualify for teacher student loan forgiveness programs, which can help defray borrowing costs.

For example, if you work for a government or nonprofit organization, you could qualify for Public Service Loan Forgiveness (PSLF). Under this program, your remaining student loan balance is forgiven after you make 120 qualifying payments.

Recap of private student loans for teachers

Lender	Rates (APR)
Sallie Mae	4.50% – 16.70%
College Ave	4.07% – 16.69%
Ascent	4.09% – 16.08%
Earnest	4.36% – 16.20%