This resource is provided by ACSA Partner4Purpose Horace Mann.
When U.S. educators return to their classrooms this fall, they face resumed student loan payments without the likelihood of one-time federal student loan debt relief. The added financial stress is especially acute for educators, who are taking on more duties due to the national teacher shortage and generally feel less financially secure than their private sector counterparts.
But educators have another avenue for student loan relief. The U.S. Public Service Loan Forgiveness program, which allows for public school educators to have their student loan balance forgiven after roughly 10 years of service, remains intact.
“Public Service Loan Forgiveness can eliminate far more debt than a one-time $10,000 or $20,000 impact, but many educators find the process complicated and time-consuming to navigate,” said Horace Mann Vice President Tom Kammerer. “That’s where Horace Mann can help. Since its inception in 2016, our Student Loan Solutions program has helped educators identify more than $600 million in student loan forgiveness opportunities.”
On June 30, the Supreme Court blocked the Biden administration’s student loan forgiveness initiative, which would have provided $10,000 in student loan debt forgiveness to many federal borrowers and $20,000 to Federal Pell Grant recipients. In addition, federal student loan interest will begin to accrue on Sept. 1, with payments resuming Oct. 1.
Educators generally have higher educational requirements and lower salaries than workers in the private sector. In a 2020 Horace Mann study, 88% of educators said they would be more likely to stay in the education profession if their student loan debt was forgiven.
“Educators are delaying major life events like getting married, starting a family or buying a house due to student loan debt, and it’s causing more and more educators to consider changing careers,” Kammerer said. “By helping alleviate educators’ student loan debt through existing programs, we can keep more educators in the classroom focused on the job they love.”
Horace Mann’s Student Loan Solutions program is complimentary and pairs public school educators with trusted resources to help them navigate student loan forgiveness. Public educators can sign up for a free account at horacemann.com/student-loan-debt-help. Administrators interested in providing Student Loan Solutions as a no-cost district-wide benefit offering can get more information at horacemann.com/student-loan-debt-help/schools.
For more information on Horace Mann’s research on educators’ financial wellness and its impact on staffing levels, visit horacemann.com/balance.