Working in the field of education has many rewards, many of which may be intangible. Financial compensation for teachers is not always comparable to salaries that can be obtained in the private sector despite other benefits that are provided to teaching professionals in public schools. Thankfully, there are financial incentives, including student teaching loans, that make it possible to finance a college education and become a teaching professional. Some of these financing programs are on the federal level, and others are private.
It is very possible that no one loan will cover a student's entire college expense. Instead, multiple student teaching loans may need to be obtained in order to complete undergraduate course work. Beginning at the federal level is a good way to begin. In the U.S., Stafford Loans are a prevalent type of financing offered by the federal government to undergraduate and graduate students. Repayment terms are outlined on the federal website, including current interest rates for different loan products, and the best student teaching loans will expect a reasonable repayment schedule with a potential option for loan forgiveness under financial hardship.
Qualified individuals may be able to receive a type of federal financing known as a subsidized loan, which requires borrowers to only repay the principal amount of a loan and no interest. Individuals who have evidence of economic hardship as outlined by federal standards might be eligible for this type of financing. The application process is typically free for students.
Unsubsidized loans are another type of federal financing. Students who obtain these types of loans for teaching are in fact required to pay interest on loans once a repayment schedule begins. There is typically some grace period upon graduation before payments on student teaching loans begin. Also, the interest rates are designed to be low so that students are not deterred from seeking college educations. Private banking institutions might offer government programs in which students can obtain federal loans at attractive interest rates, and individuals who pay these student teaching loans continuously on time may receive reductions in interest rate payments.
Private lenders, including banks, also extend loans for student teaching. Experts suggest that students seek out private financing to become teachers only after all federal options have been exhausted. This is in part due to the fact that federal agencies may offer future teachers loan forgiveness or other perks that are not available through traditional, private financing even for education majors.