If a student has the goal of pursuing a career as a teacher, they may find that the Teacher Education Assistance for College and Higher Education (TEACH) Grant can help them meet their goals and reduce their educational expenses. The TEACH Grant is a form of federal financial aid that is focused on helping those pursuing a career in teaching pay for their college expenses.
As part of the TEACH Grant, recipients are required to complete a teaching service obligation in order to get the grant. If this obligation isn’t completed, the grant will be transitioned into a loan that will need to be repaid with interest.
Keep reading for more information on the TEACH Grant, including how it works, pros and cons of the TEACH Grant, and how to apply.
Table of Contents
Key Points
• The TEACH Grant provides up to $3,772 per year to eligible undergraduate and graduate students pursuing teaching degrees.
• Recipients must teach high-need subjects in low-income schools for four years within eight years of completing their academic program.
• Students must meet academic requirements to qualify, including maintaining a 3.25 grade point average (GPA) or scoring above the 75th percentile on a college admissions test.
• If recipients do not complete their service obligation, all TEACH Grant funds are converted into Direct Unsubsidized Loans that they must repay with interest.
• The TEACH Grant can reduce education costs, but students who don’t want to commit to the service requirement may need to pursue alternative funding options.
What Is a TEACH Grant?
The TEACH Grant is a federal financial aid program designed to help students pursuing teaching careers pay for college expenses. In order to receive a TEACH Grant, applicants have to agree to teach a subject that is considered “highly needed” in a low-income area with a shortage of specific subject teachers. They can do this in an elementary or secondary school.
Grant awards are up to $3,772 a year when the recipient is in school. Once they start working, they will be paid their normal salary without the addition of any grant funds.
Prospective teachers in multiple subject areas are eligible for TEACH Grants, including:
• Bilingual education and English language acquisition
• Foreign languages
• Mathematics
• Reading specialist
• Science
• Special education
• Any other field that has been identified as high-need by select governing agencies
After graduating, recipients have to teach at a low-income school or educational agency for a minimum of four years. This four-year teaching requirement must be completed within eight years of the recipient’s graduation.
Recommended: FAFSA Grants and Other Types of Financial Aid
TEACH Grant Eligibility
The TEACH Grant comes with certain eligibility requirements, including:
• The student must be eligible for federal student aid programs.
• The student has to be an undergraduate or graduate student.
• The recipient’s school has to participate in a TEACH-Grant-eligible program of study.
• The student has to be enrolled in one of these eligible programs.
• The recipient must score above the 75th percentile on one or more portions of a college admissions test or maintain a cumulative GPA of 3.25 or higher.
How the TEACH Grant Works
Students who qualify for the TEACH Grant program may receive up to $3,772 a year in funding if they are in the process of completing — or one day plan to complete — the coursework required to start a teaching career.
In order to qualify for a TEACH Grant, the student has to sign a TEACH Grant agreement to work full-time as a teacher for four years at an elementary or secondary school or educational service agency that serves low-income students. As we’ve mentioned, they also need to teach in a high-need field and have to complete their teaching obligations within eight years after they graduate from or stop being enrolled at the institution of higher education where they received a TEACH Grant.
Do You Have to Pay It Back?
If the recipient fulfills all the service obligations of the grant, they won’t have to repay their TEACH Grant. However, if they don’t fulfill the TEACH Grant requirements, then all TEACH Grants they received will be converted to Direct Unsubsidized Loans that they must repay in full. They will be charged interest starting from the day of their TEACH Grant disbursement.
Can It Be Used for Living Expenses?
The TEACH Grant is intended to fund educational expenses (up to $3,772 annually) for students who are in the process of or will one day complete the coursework required to begin a teaching career. As a form of federal student aid, it should be usable for living expenses.
Pros and Cons of a TEACH Grant
Like any program, the TEACH Grant has some unique advantages and disadvantages associated with it.
| Pros | Cons |
|---|---|
| Up to $3,772 in funding each year to pursue the coursework required to become a teacher | Must work full-time as a teacher for four years at an elementary or secondary school or educational service agency that serves low-income students |
| If service obligation is fulfilled, the grant doesn’t need to be repaid | If the service obligation is not completed within eight years, the grant will need to be repaid in the form of a Direct Unsubsidized Loan |
Applying for a TEACH Grant
The TEACH Grant application is a part of the Free Application for Federal Student Aid (FAFSA®). Students can apply for the TEACH Grant when they submit their FAFSA. Some grants may have limited funding, so it’s generally recommended that students submit the FAFSA earlier rather than later. When the student receives their financial aid offer, they’ll find out if they received a TEACH Grant.
Students must continue to apply for the TEACH Grant each year by submitting the FAFSA annually. They will also be required to complete TEACH Grant counseling and sign a new Agreement to Serve every year.
Not all schools participate in the TEACH Grant program, so it’s helpful to contact the school’s financial aid office to find out whether they participate and learn what specific areas of study are eligible.
Alternative Forms of Funding
If a student doesn’t qualify for the TEACH Grant, finds it is not a good fit for their needs, or knows that they don’t want to complete the service obligations, these are some other options they may have for pursuing funding to help pay for college.
Scholarships
When a student receives a scholarship, they don’t have to repay those funds. It’s worth applying for multiple smaller scholarships, not just big ones. Those smaller scholarships can really add up.
Recommended: The Differences Between Grants, Scholarships, and Loans
Other Grants
Like scholarships, generally, students don’t have to repay grants for college (unless the grant has obligations, as with the TEACH Grant). A student’s financial aid office can help point them in the direction of available grants, and filling out the FAFSA annually can help them qualify for other federal grants, such as the Pell Grant.
Recommended: FAFSA Guide
Federal Student Loans
Federal student loans are funded by the U.S. Department of Education, and there are a handful of different types of federal loans available to both undergraduate and graduate students. To qualify for federal student loans, students have to fill out the FAFSA each year. Federal student loans generally have better interest rates and terms than private student loans and come with unique federal protections.
Private Student Loans
Students can use private student loans to help fill the gaps that scholarships, grants, and federal student loans leave behind. As mentioned, private student loans may not offer the same benefits as federal student loans, so they are generally considered an option only after other funding resources have been exhausted.
Recommended: Guide to Private Student Loans
Part-Time Work
If students are looking to avoid taking on student loan debt or want to lighten their student loan load, they may work part-time to help cover higher education costs and living expenses. There are often on-campus jobs designed to help college students balance their school work and their need to earn an income.
The Takeaway
Paying for college is expensive, and a TEACH Grant can help soon-to-be teachers pay for the cost. That being said, the service obligations of this grant may not suit all students, and you may find you need to pursue alternative funding, including federal and private student loans.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
FAQ
Is the TEACH Grant worth it?
Each individual needs to consider carefully whether the service obligation attached to the Teacher Education Assistance for College and Higher Education (TEACH) Grant makes the $3,772 in financial assistance worth it to them. If you don’t want to live or teach in an area that serves low-income students, you may find this program isn’t a good fit.
Do you have to pay back a TEACH Grant?
Recipients may have to pay back their Teacher Education Assistance for College and Higher Education (TEACH) Grants if they don’t meet the full requirements of their service obligation. If a recipient fails to meet these obligations, the grant funds they received through the program will be converted to Direct Unsubsidized Loans, which must be repaid in full with interest.
What does TEACH Grant stand for?
The acronym TEACH stands for Teacher Education Assistance for College and Higher Education. The grant is a form of federal financial aid for those pursuing a career in teaching.
About the author
Jacqueline DeMarco
Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.
Photo credit: iStock/Marcus Chung
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