Schools paying for education if you work there for certain amount of time?

Question

Hello, I've heard that if you go to school to get a degree in education, that (depending on the school you work for after graduating) they will pay off your student loan if you agree to be an employee there for a predetermined amount of time. So if you'd quit your job as a teacher before the end of your 'tenure' you need to pay off your own student loan, rather than your employer paying it off. Is there such a thing? Thanks so much!

Answer 1

Yes, there are programs out there both at the government and private orgaization levels. The programs primarily exist in low income schools or certain teaching professions. It can range from two to five years of service in duration to get it cancelled. I have included some links which should help in learning more about the teacher student loan forgiveness program.

Answer 2

There are "loan forgiveness" programs in place for teachers, yes. With these programs, the government (not your employer) pays off some or all of your student loans after you have worked as a teacher in a low-income or high-need area for a predetermined amount of time.

The good news is that these programs aren't as "all or nothing" as you probably think. In most cases, if the program's aim is to pay of 100% of the student loans for a person who works in a low-income school for 5 years, they will usually pay off 20% of that teacher's loan each year. If you leave after three years, you will have 60% of your loans paid off -- which isn't too bad.

If you think you're eligible for one of these programs, by all means, take advantage of them -- you, as a teacher, are a valuable commodity and that's exactly what the gov is saying by creating these programs. Just make sure you read all of the fine print.

http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelperk.jsp?tab=repaying
http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelstaff.jsp?tab=repaying
http://www.finaid.org/loans/forgiveness.phtml

Answer 3

What you heard is true. Alot of hospitals are doing that, too. They will give students a scholarship or a loan and in return if you work for the hospital for 3-5 years you do not have to pay the money back. Good investment into your community.