Federal Student Loan Repayments for Teachers May Get Reboot
- By Dian Schaffhauser
A new bipartisan bill in Congress would streamline loan repayment for teachers in high-need schools. The
"Teacher Loan Repayment Act of 2015" would
replace several teacher loan forgiveness and cancellation programs, such as the
Under the new program, the federal government would pay $250 toward a teacher's student loans each month for the first two years of
teaching. That would rise by $50 each month over the course of the next several years, reaching as much as $400 monthly. The maximum amount of
student loan repayments made for any one person would be $23,400. If a student's monthly payment were less than $250, the difference would go
toward paying off the principle of existing loans.
The purpose of the bill, said the authors, would be "to encourage highly qualified individuals to enter and continue in the teaching
profession, and to ensure qualified effective teachers are encouraged to work in high-need schools," such as Title 1 schools, where at least 40
percent of children come from low-income households.
If it's passed, the bill would amend the Higher Education Act of 1965. It's not retroactive; it would only apply to loans going forward.
Supporters who have signed onto the bill include Senators Orrin Hatch (R-UT) and Mark Warner (D-VA), as well as Representatives Derek
Kilmer (D-WA) and Richard Hanna (R-NY).
"Evidence over the past several years makes it clear that existing student loan repayment programs have failed to encourage a high number
of teachers to work in low-income classrooms," said Hanna in a prepared statement. "As a result, Title-I schools have continued to face
difficulties in recruiting and retaining skilled teachers. By consolidating the failed crop of existing loan repayment programs into one
streamlined, accessible program with clearer incentives and fewer bureaucratic hurdles, educators will have greater access to federal support
and low-income schools will be able to effectively recruit and retain quality teachers. While we will all benefit from having tax dollars spent
on a more efficient program, with additional teachers in the classrooms of lower-income school districts, students will be the ultimate
The initiative has earned the support of Third Way. "While well-intentioned, today's
federal loan assistance options for teachers fall short due to their overly-complex qualifications and back-loaded benefits," said Lanae
Erickson Hatalsky, director of the centrist think-tank's social policy and politics program, in the same statement. "Having a set monthly loan
payment for teachers that grows larger over time will serve as an important tool for both attracting and retaining great teachers in the
classrooms that need them the most."
Dian Schaffhauser is a senior contributing editor for 1105 Media's education publications THE Journal and Campus Technology. She can be reached at [email protected] or on Twitter @schaffhauser.