Teacher Debt Relief Act
- Sponsor
- Rep. Hayes, Jahana [D-CT-5]
- Committees
- Education and Workforce Committee (primary)
- Last action
- May 14, 2026
Bottom line
The Teacher Debt Relief Act significantly broadens the eligibility criteria and allows for the combination of federal student loan forgiveness benefits for teachers, potentially increasing the financial relief available to them.
What it actually does
This bill amends the Higher Education Act of 1965 to expand eligibility for federal student loan forgiveness programs for teachers. Specifically, it removes the requirement for teachers in certain Title I schools to teach in a designated shortage area to qualify for Teacher Loan Forgiveness and Perkins Loan cancellation. Additionally, it allows borrowers to combine benefits from income-contingent repayment plans under the Direct Loan Program with both Teacher Loan Forgiveness and Perkins Loan cancellation, which was previously prohibited.
Proponents argue
Supporters argue that this bill will make teaching a more attractive and sustainable profession by significantly reducing the financial burden of student loan debt for educators. They contend that expanding eligibility and allowing for combined benefits will help retain qualified teachers, particularly in high-need Title I schools, and encourage more individuals to enter the teaching field, ultimately benefiting students and communities.
Opponents contend
Critics may raise concerns about the increased cost to federal taxpayers due to expanded forgiveness and the potential for 'double-dipping' by combining multiple programs. Some might argue that removing the 'shortage area' requirement could dilute the effectiveness of targeted forgiveness programs designed to address specific critical needs, or that it doesn't address the root causes of teacher retention issues beyond financial incentives.
The bill is very short and can be read quickly, allowing ample time for evaluation.
Section 2(1) and 2(3)
Expanded Eligibility for Teacher Loan Forgiveness and Perkins Loan Cancellation
These provisions amend the eligibility criteria for two federal student loan forgiveness programs: the Teacher Loan Forgiveness Program (for Federal Family Education Loans) and the Perkins Loan cancellation program for teachers. Previously, teachers working in Title I schools that were not explicitly listed in the Secretary's annual directory of low-income schools had to teach in a State-designated subject shortage area to qualify. This bill removes that specific requirement, making more teachers in these schools eligible for forgiveness regardless of their subject area.
Supporters argue
Supporters argue that this change provides broader support to teachers in high-need Title I schools, recognizing the challenges faced by all educators in these environments, not just those in specific shortage subjects. It aims to reduce financial stress and improve retention across the board in these critical schools.
Critics contend
Some critics might contend that removing the shortage area requirement could make the program less targeted, potentially diverting resources from the most acute teacher shortages. They might argue that the original intent was to incentivize teaching in specific high-demand fields.
Tradeoffs
The bill balances the goal of providing broad support to teachers in high-need schools against the potential for less targeted allocation of federal funds that could otherwise be directed to specific shortage areas.
Section 2(2)
Combined Benefits for Direct Loan Income-Contingent Repayment and Teacher Forgiveness
This provision modifies the rules for borrowers participating in income-contingent repayment (ICR) plans under the William D. Ford Federal Direct Loan Program. Previously, borrowers could not receive loan forgiveness under an ICR plan if they also received forgiveness under the Teacher Loan Forgiveness Program (428J) or the Perkins Loan cancellation program (460). This amendment removes that prohibition, allowing eligible teachers to potentially benefit from both an ICR plan's forgiveness and the specific teacher-focused forgiveness programs, thereby significantly increasing their total potential loan relief.