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 amount they borrowed was $55,800, according to a 2019 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.
In this guide:
Student loans for teachers
Two types of student loans exist: 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, such as banks, credit unions, and online lenders.
Since 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 for teachers
If you want to study teaching, several federal loans can help you pay for school. Let’s take a look at 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.
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.
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.
Sallie Mae
Undergraduate Student Loans
- Cosigner release after 12 months
- Repayment options include deferred fixed and interest-only repayment
- Get a decision within 15 minutes
Sallie Mae offers you 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.
Key features:
- Loan amounts: $1,000 up to the cost of attendance
- Fixed APR: 4.50% – 14.83% for undergraduate loans; 5.25% – 14.48% for graduate loans
- Variable APR: 5.37% – 15.70% for undergraduate loans; 5.87% – 15.47% for graduate loans
- Repayment terms: 10 or 15 years
- Fees: Late fee of 5% of the amount due; maximum of $25
- Available for undergraduates and graduates? Yes
College Ave
Undergraduate Student Loans
- 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 repayment terms range from five to 15 years.
Key features:
- Loan amounts: $1,000 up to your school’s cost of attendance
- Fixed APR: 3.99% – 14.96% for undergraduate loans; 4.24% – 12.99% for graduate loans
- Variable APR: 3.99% – 14.86% for undergraduate loans; 3.99% – 12.99% for graduate loans
- Repayment terms: 5, 8, 10, or 15 years
- Fees: Late fees vary by the amount due and number of days late
- Available for undergraduates and graduates? Yes
Ascent
Undergraduate Student Loans
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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.
Key features:
- Loan amounts: $2,001 up to your school’s cost of attendance
- Fixed APR: 4.62% – 16.43% for undergraduate loans; 5.62% – 16.43% for graduate loans
- Variable APR: 5.31% – 15.32% for undergraduate loans; 6.31% – 15.32% for graduate loans
- Repayment terms: 5, 7, 10, 12, or 15 years
- Fees: Late fee of 5% of the amount due or $25, whichever is less
- Available for undergraduates and graduates? Yes
Earnest
Undergraduate Student Loans
- 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.
- Loan amounts: $1,000 up to the cost of attendance
- Fixed APR: Starting at 4.49%
- Variable APR: Starting at 4.49%
- Repayment terms: 5, 10, 15, or 20 years
- Fees: None
- Available for undergraduates and graduates? Yes
How to apply for student loans for teachers
To apply for federal student loans, start by completing the Free Application for Federal Student Aid (FASFA) before the annual deadline. The federal FAFSA deadline for the 2023 – 2024 academic year is June 30, 2024.
Keep in mind: Your state or the college you attend may have separate deadlines, so check with both.
Here’s the information you’ll need to complete the FAFSA:
- Your tax returns (parents’ tax returns if you’re a dependent student)
- Your Social Security number (SSN) (your parents’ SSN if you’re a dependent)
- Your driver’s license number, if applicable
Once you complete the FAFSA, your school will send you a financial aid award letter, which might include federal loans for which you qualify. Then you can choose whether to accept the loan.
You’ll have to apply with a private lender if you need a private student loan to fill in funding gaps. The application process varies by lender, but you’ll likely need to provide the following information:
- Name of your school
- Tax returns
- Social Security number
- Recent pay stubs
- Housing payment
If you’re applying with a cosigner, they’ll need to provide their personal and financial information as well.
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 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.