The MTA Advantage is a publication of MTA Benefits, a subsidiary of the Massachusetts Teachers Association
Educators are lifelong learners, but how does one pay for additional coursework — a master’s degree and beyond — on relatively modest pay? And even when you’ve made it through the minefield of student loan repayment yourself, how do you prepare to put your own children through college? As it turns out, there are some strategies that you can use to your advantage.
For new teachers preparing to earn a master’s degree or for those who have recently received a graduate degree, the good news is that any Direct federal student loan should be dischargeable through the Public Service Loan Forgiveness program.
There are a number of questions to consider when creating a repayment strategy to get you to forgiveness — but they’re pretty straightforward.
- Are you going to teach for another 10 years?
- Do you have only federal loans, or do you also have some private loans?
- What subject do you teach? Are you a candidate for Teacher Loan Forgiveness?
- What if you’re a counselor rather than a classroom teacher?
- A custodian or a school librarian?
- Is your current loan repayment plan eligible for PSLF?
- Can you also discharge your Perkins loans?
- What are your other household expenses?
- What are your financial goals for the next 10 years?
Loan forgiveness isn’t just for new teachers. If you have children who are reaching college age or are already in school, you also might have options. Many educators are not aware that their profession might allow them to discharge their federal Parent PLUS loans after 120 qualifying payments.
While that might sound straightforward, it’s not. There are some fairly tricky eligibility requirements. But getting out from under significant debt before retirement is a real possibility. For parents still paying off their own federal undergraduate loans while tackling PLUS loans, the news might be even better.
Although the questions may not seem terribly difficult, it may still be unclear how the answers come together to help you form a strategy under various scenarios. That’s why MTA Benefits has partnered with Cambridge Credit Counseling — to help MTA members create a path to loan forgiveness that accommodates borrowers’ specific mix of loans, current budget and everything they would like to accomplish with their hard-earned money.
Lifelong learning shouldn’t mean lifelong debt. You can reach Cambridge Credit Counseling at www.cambridge-credit.org/mta or by calling 888.948.4639.
