Teacher Loan Forgiveness Calculator

What Is Teacher Loan Forgiveness?

The Teacher Loan Forgiveness program allows eligible teachers to have up to $17,500 of their federal student loans forgiven.

It rewards teachers who:

• Work in low-income schools
• Teach full-time
• Complete 5 consecutive academic years
• Meet certification requirements

The goal is simple: encourage qualified teachers to serve in high-need schools.

How Much Can You Get Forgiven?

The amount depends on what you teach.

Up to $17,500 Forgiven

You may qualify for the higher tier if you teach:

• Special Education (elementary or secondary)
• Secondary Math
• Secondary Science

Up to $5,000 Forgiven

You may qualify for the lower tier if you teach:

• Other elementary subjects
• Other secondary subjects

The calculator determines which tier applies to you.

How the Teacher Loan Forgiveness Calculator Works

The calculator estimates three key things:

1. Your eligibility status
2. Your projected forgiveness amount
3. Your remaining balance

Let’s look at the inputs it uses.

1. Eligible Loan Balance

You enter your current balance for:

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• FFEL Subsidized or Unsubsidized Loans

Do not include:

• PLUS Loans
• Perkins Loans

The calculator caps forgiveness at your actual balance.
For example:

• If you qualify for $17,500 but only owe $12,000 → you receive $12,000.

2. October 1, 1998 Rule

If you had an outstanding federal loan balance on October 1, 1998, you are not eligible for this program.

The calculator checks this immediately. If “Yes” is selected, it marks you as Not Eligible.

3. School Qualification (Title I Requirement)

You must teach at a qualifying low-income school (Title I school).

If you do not teach at a Title I school, you are not eligible for TLF.

4. Highly Qualified Teacher Status

You must:

• Have a bachelor’s degree
• Be fully state-certified
• Not have emergency or temporary certification

If you are not considered “Highly Qualified,” you cannot receive forgiveness.

5. Teaching Specialty and Grade Level

This determines your forgiveness tier:

The calculator automatically assigns the correct maximum.

6. Consecutive Years Taught

You must complete 5 full and consecutive academic years.

The calculator shows:

• Eligible to Apply Now (5+ years completed)
• On Track (less than 5 years completed)
• Not Eligible (if other rules are not met)

If you’ve completed 3 years, it will show:

On Track (Years Remaining: 2)

That makes it easy to plan.

Example: How the Calculator Estimates Forgiveness

Let’s say:

• Loan balance: $30,000
• Secondary math teacher
• Title I school
• Highly qualified
• 5 consecutive years completed

Result:

• Max tier: $17,500
• Projected forgiveness: $17,500
• Remaining balance: $12,500

Now compare that to another case:

• Loan balance: $12,000
• Special education teacher

Result:

• Max tier: $17,500
• Projected forgiveness: $12,000 (capped at your balance)
• Remaining balance: $0

The calculator makes this clear instantly.

What Happens If You Still Owe a Large Balance?

If your remaining balance after TLF is still high, the calculator may suggest looking into:

Public Service Loan Forgiveness

PSLF:

• Requires 120 qualifying payments
• Has no forgiveness cap
• Forgives the remaining balance completely
• Is tax-free at the federal level

Important:
You cannot count the same 5 years of teaching toward both TLF and PSLF at the same time.

So choosing the right strategy matters.

When Teacher Loan Forgiveness Makes Sense

TLF is usually a good option if:

• You qualify for the $17,500 tier
• Your total balance is under $25,000
• You want forgiveness sooner rather than waiting 10 years

It’s often not ideal if:

• You owe $50,000+
• You plan to work in public service long term
• PSLF would wipe out a much larger remaining balance

The calculator helps you see this clearly.

Common Mistakes Teachers Make

Here are a few issues that delay forgiveness:

• Taking a break between years (must be consecutive)
• Switching to a non-Title I school
• Not meeting “Highly Qualified” standards
• Including non-eligible loans in the estimate

The calculator flags most of these automatically.

Is Teacher Loan Forgiveness Taxable?

No.

Teacher Loan Forgiveness is 100% tax-free at the federal level.

That means if you receive $17,500 in forgiveness, you keep the full benefit.

Why Use a Teacher Loan Forgiveness Calculator?

Without a calculator, you would have to:

• Manually check eligibility rules
• Determine your tier
• Cap forgiveness at your balance
• Calculate remaining debt

The calculator does this in seconds.

It gives you:

• Clear eligibility status
• Exact projected forgiveness
• Remaining balance breakdown
• Timeline tracking

It removes guesswork.