The 2021 National Education Association survey reported that 53% of teachers from the pre-kindergarten through Grade 12 levels took out student loans to get through their schooling, and an estimated 42% of teachers with more than a decade of experience are still carrying some of that debt. This of course may limit your ability to pay off other debt like credit cards, especially on a teacher’s salary. In 2024, the average teacher salary in the United States was $69,544, according to the National Education Association (NEA). Additionally, the average starting salary for teachers was $44,530. So, how do you get out of debt as a teacher? Here we’ll discuss credit card debt relief programs for teachers.
1. Student Loan Forgiveness
Sometimes the best way to attack credit card debt is to pay off other debt like loans first. Once you free up cash from your loan’s monthly payment, you can then apply it to paying off your credit card debt. The good news is that there are several options for paying off student loans for teachers.
One program to consider is the Public Service Loan Forgiveness Program. Aimed at federal loans, the program will forgive the remaining loan balance after you make 120 qualifying monthly payments while working in public service. Teachers can qualify for this program by working for qualifying employers such as a public school.
The Teacher Loan Forgiveness Program is another option for loan repayment. This program offers forgiveness of up to $17,500 on Direct Subsidized and Unsubsidized Loans and Subsidized and Unsubsidized Federal Stafford Loans. To qualify, a teacher must teach full-time for five consecutive years in a low-income school or educational service agency.
2. Grants and Fellowships
Another creative way to help manage your debt is to cover other expenses like classroom supplies and professional development with grants and fellowships for teachers. This can free up funds to pay off your debt. Especially if you are considering pursuing a master’s degree, there are programs to help cover the cost.
3. Debt Management Programs
A non-profit debt management program can provide credit card relief for teachers. These credit counseling agencies can help you lower interest rates, consolidate debt, and create a repayment plan. Having an expert in your corner can help take some of the financial stress of credit card debt off of you so that you can improve your financial health.
4. Debt Consolidation Loans
A debt consolidation loan can create credit card relief for teachers. Instead of managing multiple credit cards with high interest rates, a debt consolidation loan consolidates your debt into one monthly payment. This can help you get ahead of the crippling cycle of credit card interest. With a debt consolidation loan, you can focus on paying down the principle of the loan more quickly. Debt settlement is also available. This involves negotiating with your creditors to reach a reduced payoff amount. This can negatively impact your credit score, however.
5. Balance Transfer Credit Card
A balance transfer card could be a good option for teachers with credit card debt. Balance transfer cards have lower interest rates and most offer a 0% APR intro period. This can help you pay off the balance faster. However, there are some disadvantages. Many require a fee of 3%–5% of the transferred amount, which can add up quickly. Plus, you’ll need a good credit score to qualify.
Have you tried any of these credit card debt relief options for teachers? Let us know how we can help you manage your debt.
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