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Last Updated: 10/14/2020.
Please be sure to research these opportunities as requirements may change over time.

Loan Forgiveness Programs


Public Service Loan Forgiveness (PSLF) Program

Forgives the remaining balance on your Federal Direct Loans after 120 qualifying payments (10 years).

View complete program details at StudentAid.gov/publicservice

Here are some highlights:

  • This program has the broadest employment qualification requirements of the federal programs listed—it doesn’t require that you teach at a low-income a public school, or even be a teacher. Most full-time public and private elementary and secondary school teachers will meet the employment requirements.
  • You must have Direct Loans. If you have other types of federal loans, like FFEL or Perkins Loans, you must consolidate in order for those loans to qualify. To check which types of loans you have, log in to StudentAid.gov.
  • You should repay your loans on an income-driven repayment plan if you want to get the most value out of the program. You can apply for an income-driven repayment plan on StudentLoans.gov.
  • In order for payments to count toward the 120 needed to get forgiveness, they need to be full payments, made no more than 15 days late, and made after October 1, 2007.
  • Loan amounts forgiven under PSLF are NOT considered taxable by the IRS.

Teacher Loan Forgiveness

Forgives up to $17,500 of your Direct or FFEL Subsidized or Unsubsidized Loans after 5 complete and consecutive years of teaching at a qualifying school.

View complete program details at StudentAid.gov/teach-forgive

Here are some highlights:

  • You must have been employed as a full-time teacher at an eligible school for five complete and consecutive academic years, and at least one of those years must have been after the 1997–98 academic year.
  • Certain highly qualified special education and secondary mathematics or science teachers can qualify for up to $17,500 in forgiveness. Other eligible teachers can qualify for up to $5,000.
  • PLUS loans and Perkins loans are not eligible to be forgiven through this program.
  • Any time you spent teaching to receive benefits through AmeriCorps cannot be counted toward your required five years of teaching for Teacher Loan Forgiveness.
  • You apply for teacher loan forgiveness after you have completed the five-year teaching requirement.

Perkins Loan Cancellation for Teachers

Forgives up to 100% of your Federal Perkins Loan Program if you teach full-time at a low-income school, or if you teach certain subjects.

View complete program details at StudentAid.gov/teach-forgive

Here are some highlights:

  • This program can only forgive your Federal Perkins Loans. Check to see if you have Perkins loans at StudentAid.gov.
  • If you are eligible for this program, up to 100 percent of the loan may be canceled for teaching service, in the following increments:
    • 15 percent canceled per year for the first and second years of service
    • 20 percent canceled for the third and fourth years
    • 30 percent canceled for the fifth year
  • Each amount canceled per year includes the interest that accrued during the year.
  • To find out if a school is classified as a low-income school, check our online database for the year(s) you have been employed as a teacher.
  • Even if you don’t teach at a low-income school, you may qualify if you teach mathematics, science, foreign languages, bilingual or special education, or different subject determined by your state education agency to have a shortage of qualified teachers in your state.
  • Private school teachers can qualify if the school has established its nonprofit status with the Internal Revenue Service (IRS), and if the school is providing elementary and/or secondary education according to state law.

State-Sponsored Student Loan Forgiveness Programs

(Note: Indiana currently has no student loan forgiveness programs for teachers. This is included strictly for the sake of completeness.)

Tons of states offer loan forgiveness programs for teachers—especially if you teach in a high need area. The American Federation of Teachers has a great searchable database you can use to find state and local forgiveness programs you might qualify for.

You may qualify for more than one of the programs listed above. In some instances though, your decision to take advantage of one program may impact your ability to take advantage of another. For example:

You must have Direct Loans in order to qualify for Public Service Loan Forgiveness. If you have any Perkins Loans, you may be tempted to consolidate them into the Direct Loan Program in order to make them eligible for PSLF. However, if you do that, you’ll no longer qualify for Perkins Cancellation. You may be better off leaving your Perkins Loans out of the consolidation loan so you can take advantage of both programs.

You may not receive a benefit under both the Teacher Loan Forgiveness Program and the Public Service Loan Forgiveness Program for the same period of teaching service. For example, if you make payments on your loans during your five years of qualifying employment for Teacher Loan Forgiveness and then receive loan forgiveness for that service, the payments you made during that five year period will not count toward PSLF.

Awards & Grants


Earline S. Student Teaching Stipend for Minorities

Black and Hispanic students who will be participating in student teaching that academic year. Award amounts vary based on need and available funding. Up to $7500 per year for 4 years. Learn more here.

STEM Teacher Recruitment Retention Fund

The STEM Teacher Recruitment Fund was established by the Indiana General Assembly during the 2013 Legislative Session. The fund provides grants to high-performing organizations and programs working to increase the number of high-quality science, technology, engineering, and mathematics teachers in Indiana school corporations encountering shortages of qualified teachers and in schools located in underserved areas. Learn more here.

Next Generation Hoosier Educators Scholarships

High-achieving high school and college students who plan to teach in Indiana for at least 5 years. Learn more here.

Student Teaching Stipend for High-Need Fields

Students who decide to teach in a high-need field where there is a shortage of candidates. Amount of funding varies. Learn more here.

Purdue Research Foundation Strengthening Indiana’s Future Through the 21st Century Teachers 

Program that recruits and trains students from diverse backgrounds who are pursuing a degree and career in K-12 STEM Teaching by providing a 10K scholarship in the form of forgivable loans. Learn more here.

William A. Crawford Minority Teacher Scholarship

Black and Hispanic students that plan to major in education who plan to teach in Indiana for at least 3 years. Funding varies in amount. Learn more here.

Indiana State Teachers Association Justine M. Harrell Memorial Scholarship 

This scholarship is open to a public high school senior intending to pursue a degree in education. The $1,000 scholarship is awarded for a total of four years if the student maintains a 3.0 GPA and is enrolled in an education curriculum at an accredited college or university in Indiana. Applicants for the need-based scholarship must also meet the income criteria of at or below 200 percent of the federal poverty line. Learn more here.

Indiana State Teachers Association Damon P. Moore Scholarship

This scholarship is open to a minority public high school senior who plans to pursue a teaching certificate. The scholarship was named for Damon P. Moore, an African-American educator who served three terms as ISTA President and continues to be a positive role model for young minorities aspiring to enter the education field. The $1,000 scholarship is awarded annually with an option to renew for three consecutive years. Learn more here.

Indiana State Teachers Association Educator Scholarship

This scholarship is open to students actively pursuing a degree in education who are dependents of ISTA members. The $1,000 scholarship is awarded annually with an option to renew for three consecutive years. Learn more here.

Millikin Educator Award

To recognize outstanding K-12 educators for their quality of teaching. Learn more here.

Presidential Awards in Excellence in Mathematics and Science Teaching

Teachers recognized for their contributions in the classroom and to their profession. Teachers are provided a $10,000 award from the National Science Foundation. Learn more here.

Teacher Appreciation Grants

Awards for teachers based on accountability and assessment results. Learn more here.

Indiana State Teachers Association Hoosier Educator of the Year

This award recognizes an ISTA member who exemplifies professional practice, advocacy for the profession, attention to diversity, community engagement, and leadership in professional development. Learn more here.

Indiana State Teachers Association Career Scholarship

This scholarship is open to students with demonstrated academic achievement and leadership in co-curricular activities and community involvement who are dependents of ISTA members. The $1,000 scholarship is awarded annually with an option to renew for three consecutive years if eligibility requirements are met and a transcript is submitted. Learn more here.

Indiana State Teachers Association Foundation National Board Certification Scholarship

This scholarship is open to ISTA members who are candidates for National Board Certification from the National Board for Professional Teaching Standards. Awards are up to $500 and issued on a first come, first served basis as applications are received, provided the applicant meets all scholarship criteria. Learn more here.

Indiana State Teachers Association Minority Educator

This award recognizes outstanding, active minority classroom educators. Nominees must be active ISTA members, participate in the Association and receive recommendations from the local association president and a colleague. Nominations must be made by an ISTA member and include nominee’s educational background, work experience, Association involvement, community and civic engagement, and other relevant experience. Learn more here.


Financial Planning Supports

There are lots of great resources to support with financial planning and debt management provided to Teach Indy for teachers. Below are links to resources provided by third-party organizations. Inclusion on this list does not mean an endorsement by Teach Indy or its staff. Please be sure to research all options. 

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