"What I live by, I impart." ~ Augustine
For the Teacher
Financial FAQ for Teachers
Some questions my friends and colleagues had about financing an education in teaching and a career in teaching. I wish I had some of these answers when I first started. I hope this helps anybody thinking of going into education or is currently in the field. A lot is changing the landscape right now, but here are some insights I have learned along the way that I hope helps a future educator.
**Disclaimer: The views expressed on these pages are mine alone and do not reflect those of institutions, organizations, or employers associated with me, past or present. The suggestions offered on this page do not come from a degree of expertise, but come from experiential knowledge and is to be taken as suggestions, not directives.
Q: Do I have to take out loans to finance my education at Teachers College, Columbia University (TC), or other MA Education Program? I don't know which program to choose.
A: It depends on how expensive the program is and the state of your budget. Teachers College, Columbia University, as of December 2011 costs $1,231/credit, so 16 credits or 4 classes per 4 credits would be $19,696, not including all the mandatory fees that come with being enrolled as a full-time or part-time student (Mandatory Fees). If you add up the tuition costs + the Mandatory Fees and multiply that per semester for however long your degree program will be, you may discover your savings may not be enough. Most of my colleagues that went to TC (not just in my program, but in other programs like Teaching English to Middle & High Schoolers, or International Education) had to take out loans. Now, there are much cheaper options than TC and you need to weigh the costs vs. the quality of education. How much are you willing to spend and for what purposes will you use your degree as an investment towards your future profession? If you're not sure if you will be staying in Education, there may be no need to spend thousands of dollars on an Ivy-League degree if you do not see yourself staying in the profession for more than five years.
One of my friends, currently at the Curry School of Education at University of Virginia, tells me this a reputable program. In-state there costs $11,598 (as of December 2011). Out-of-state tuition costs much more and is comparable to TC at $20,992. As a starting place to see which graduate school might be a good fit for you, especially with regard to price and quality, see the U.S. News Best Education School Rankings. Of course, this is not a definitive list nor is it always the best source for capturing the atmosphere of a university, so I suggest emailing current students, or the admissions office to speak to a current student at the school you are considering. Come prepared with questions about:
One of my friends, currently at the Curry School of Education at University of Virginia, tells me this a reputable program. In-state there costs $11,598 (as of December 2011). Out-of-state tuition costs much more and is comparable to TC at $20,992. As a starting place to see which graduate school might be a good fit for you, especially with regard to price and quality, see the U.S. News Best Education School Rankings. Of course, this is not a definitive list nor is it always the best source for capturing the atmosphere of a university, so I suggest emailing current students, or the admissions office to speak to a current student at the school you are considering. Come prepared with questions about:
- What type of student teaching does the program require? How rigorous is the student teaching? How long do your colleagues student teach for?
- Is there opportunity to truly engage, reflect, and teach during your student teaching time?
- Who are your favorite professors? Why? (This will let you see how they reflect on pedagogical styles)
- Is there a particular orientation or philosophy the program takes?
- What types of projects do you guys do during your MA program?
- What is one thing you would want to change about your program?
Q: I calculated the costs of financing my teacher education and I know I will have to take out some loans. What type of loan should I get and which loan is the best option?
A: There are several options for loans. I highly recommend borrowing from the federal government's Direct Loan Servicing. You will borrow through your education institute and they will borrow from the William D. Ford Federal Direct Loan Program. I recommend borrowing from the federal government because your loans will qualify for cancellation/forgiveness program that I will get into you later (see questions below). Furthermore, the government usually has fixed interest rates. The fewer loans you take out, the better. But, if you find that you were an independent with an income of 0 after the Fulbright experience with little familial financial support like me, you will need to take out more loans than your colleagues. However, if you are going to become a special education teacher or public school teacher, you will NOT be swimming in loans because the government does offer certain forgiveness/cancellation programs. More on that later. Here are the types of loans, in order of what I think are the best types, and their interest rates as of December 2011:
Type of Loan
| Interest Rate
Fixed interest rate of 5%
| Notes & Resource Link
|
For graduate students, the interest rate is fixed at 6.8%
|
|
For undergraduate and graduate students, the interest rate is fixed at 6.8% (This is very high)
|
|
Fixed interest rate of 7.9% (This is very high)
|
|
Q: I have Perkins, Direct Stafford (both types), and PLUS loans. What are some cancellation options as a teacher?
A: After talking to numerous loan officers at the Direct Loan Servicing and reading the financial aid/student aid website, here are some options:
OPTION 1: For Perkins, please see "Federal Perkins Loan Teacher Cancellation" page on the U.S. Department of Education's website. Something to know about this cancellation is that you just have to be either/or, which means you do not have to be a special education teacher AND teaching in a low-income area to receive some portion of cancellation. You can be either a special education teacher OR teaching in a low-income area to receive cancellation. This is important because it differentiates it from the Stafford Forgiveness Option.
OPTION 2: For Direct Stafford (unsubsidized and subsidized) loans, please see "Stafford Loan Forgiveness Program for Teachers" page on the U.S. Department of Education's website. Something to know about this cancellation is that there are two tiers. The base tier cancels up to $5,000 so long as you taught as a full-time teacher in a Title I school or a school where at least 30% of the students receive free or reduced lunch. The second tier cancels up to $17,500 so long as you taught as a full-time teacher in a low-income (Title I) school AND are a special education teacher. This one is not either/or like the Perkins, it requires meeting both criteria to receive the full cancellation.
OPTION 3: For ALL Stafford and Direct PLUS loans, please see "Public Service Loan Forgiveness Program (PSLF)" on the U.S. Department of Education's website. Something to know about this cancellation is that you will need to make 120 consecutive payments (can be interrupted if you are deferring payments). Interest payments during deferment or forbearance do not count towards payments. This is a great option for teachers because you can also apply the Income Based Repayment (IBR) or Income Contingent Repayment (ICR) options. For this option, you only need be a public school teacher or other public service employee unlike the first two options which have further limitations regarding where and what you teach.
OPTION 1: For Perkins, please see "Federal Perkins Loan Teacher Cancellation" page on the U.S. Department of Education's website. Something to know about this cancellation is that you just have to be either/or, which means you do not have to be a special education teacher AND teaching in a low-income area to receive some portion of cancellation. You can be either a special education teacher OR teaching in a low-income area to receive cancellation. This is important because it differentiates it from the Stafford Forgiveness Option.
OPTION 2: For Direct Stafford (unsubsidized and subsidized) loans, please see "Stafford Loan Forgiveness Program for Teachers" page on the U.S. Department of Education's website. Something to know about this cancellation is that there are two tiers. The base tier cancels up to $5,000 so long as you taught as a full-time teacher in a Title I school or a school where at least 30% of the students receive free or reduced lunch. The second tier cancels up to $17,500 so long as you taught as a full-time teacher in a low-income (Title I) school AND are a special education teacher. This one is not either/or like the Perkins, it requires meeting both criteria to receive the full cancellation.
OPTION 3: For ALL Stafford and Direct PLUS loans, please see "Public Service Loan Forgiveness Program (PSLF)" on the U.S. Department of Education's website. Something to know about this cancellation is that you will need to make 120 consecutive payments (can be interrupted if you are deferring payments). Interest payments during deferment or forbearance do not count towards payments. This is a great option for teachers because you can also apply the Income Based Repayment (IBR) or Income Contingent Repayment (ICR) options. For this option, you only need be a public school teacher or other public service employee unlike the first two options which have further limitations regarding where and what you teach.
Q: I've had to take out $100,000 grand in loans, with every single type of loan you listed above. I cannot afford the monthly payments, what are my options?
A: Like I said above, you can consider Income Based Repayment (IBR) or Income Contingent Repayment (ICR) options. As a teacher, you will not be making that much and if you've taken out that much in loans, you are bound to be eligible for one of these options. I highly suggest you take a look at the Repayment Calculator on the U.S. Department of Education's website to calculate which option is available to you. For some individuals who make $51,492 as their starting salary in NYC (NYC publishes their salaries of teachers) with a household of one person, with over $110,000 in loans, their monthly payment was around $280-300 per month, which is much more affordable than paying thousands in loans each month.
Thank goodness for the IBR and ICR options. Also, after making 120 consecutive payments, everything will be forgiven after you apply for the PSLF (see above). Please bear in mind, though, that as you make more as a teacher each year, your monthly rate will most likely increased because these options are based off your income. Also, keep in mind that if you file joint tax returns with your partner, this may also affect your monthly rate. In any case, these are options you definitely want to consider if you have that much in loans, in addition to the other options listed above.
Thank goodness for the IBR and ICR options. Also, after making 120 consecutive payments, everything will be forgiven after you apply for the PSLF (see above). Please bear in mind, though, that as you make more as a teacher each year, your monthly rate will most likely increased because these options are based off your income. Also, keep in mind that if you file joint tax returns with your partner, this may also affect your monthly rate. In any case, these are options you definitely want to consider if you have that much in loans, in addition to the other options listed above.
Q: I am a teacher who has been teaching for over 10 years, do I qualify for any of these cancellations?
A: That is an excellent question. Depending on when you started teaching, you should know that many of these cancellations have certain time limits, especially around when the loan was first disbursed. Check the links I have provided above to see the exact dates of qualifying loans that are eligible for cancellation. In most cases, the loans may have been made too early on and do not qualify anymore. However, do check the links.
Q: What are some ways to supplement my income once I become a teacher?
A: There are several ways to supplement your income. You can get additional income by working after-school experiences, weekends, and summer school employment. In New York City, you will get paid $41.98/hour or $293.86 for a full 7-hour day, before taxes.
As the 2011 movie American Teacher highlighted, many teachers across the United States need to get second jobs to supplement our weak salary. If this is the case, try to find a job that does not hinder your sleep and effectiveness as a teacher too much. We entered this profession to teach the next generation and although we cannot do much about our income right now, it is still our responsibility and our duty to be as effective as we can be.
As the 2011 movie American Teacher highlighted, many teachers across the United States need to get second jobs to supplement our weak salary. If this is the case, try to find a job that does not hinder your sleep and effectiveness as a teacher too much. We entered this profession to teach the next generation and although we cannot do much about our income right now, it is still our responsibility and our duty to be as effective as we can be.
