Bill Overview
Title: Loan Forgiveness for Educators Act of 2022
Description: This bill expands the Teacher Loan Forgiveness program. Among other provisions, the bill (1) renames the program the Educator Loan Forgiveness program, (2) expands program eligibility to early childhood educators and program directors serving in early childhood education programs and school leaders serving in public high-need schools, and (3) establishes a program in which the Department of Education cancels monthly student loan payments during qualifying service and provides complete loan forgiveness after five years of service.
Sponsors: Rep. Leger Fernandez, Teresa [D-NM-3]
Target Audience
Population: Educators and school leaders with qualifying educational loans
Estimated Size: 4500000
- Globally, the target population would mainly consist of individuals in professions related to education, specifically including teachers, early childhood educators, program directors, and school leaders.
- Globally, considering countries with similar educational structures as the U.S., a considerable population could potentially be impacted if they have applicable student loans.
- The level of impact depends on how widespread equivalent education financing structures and debt are globally, but the main focus remains within the U.S. framework.
- Typically, early childhood educators and high-need school leaders are in demand in most educational systems, making this group quite prevalent.
Reasoning
- I targeted a diverse group within the education sector, including both educators directly teaching and those holding administrative roles, to see a comprehensive range of potential impacts.
- Employment in public high-need schools often correlates with lower pay, making educators in these environments more cognizant of student debt relief programs.
- Included people working both in urban and rural areas to assess geographic diversity in policy impact.
- Highlighted differences in age and career stage to see how mid-career educators might view the policy differently than new entrants.
- Considered perspectives of those who are currently paying off loans and those who've already repaid or did not incur loans.
- The budget was a significant factor in determining the possibility of full program implementation, affecting projections for the number of people impacted.
Simulated Interviews
Kindergarten Teacher (Los Angeles, CA)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- This policy could significantly ease the financial burden from my student loans.
- It allows me to invest more in classroom resources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
High School Principal (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This might help in recruiting and retaining qualified educators in high-need schools.
- I personally would benefit immediately, freeing up part of my budget for school projects.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Early Childhood Program Director (Miami, FL)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- This program will alleviate financial stress and allow me to focus more on my work.
- It's a relief knowing that my job contributes directly to loan forgiveness.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Middle School Teacher (Rural Alabama)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- Although I won't benefit directly, this might help colleagues stay longer in our district.
- Programs like these show support for our work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Special Education Coordinator (Detroit, MI)
Age: 36 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This could be life-changing. I'm paying almost $800 a month on loans.
- Complete loan forgiveness would provide peace of mind I currently don't have.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 9 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 8 | 3 |
Elementary School Teacher (Seattle, WA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- I am interested in the program, although my debt isn't overwhelming.
- It helps to know this backup is available.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
School Superintendent (New York, NY)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- This is beneficial for a lasting positive impact in our schools.
- Educators need as much support as possible, especially those just starting out.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
High School Teacher (Chicago, IL)
Age: 39 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- Given my current financial obligations, this policy would be incredibly supportive.
- Hopefully, this incentivizes more educators to pursue additional training.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 9 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 7 | 3 |
Early Childhood Educator (Phoenix, AZ)
Age: 41 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- Unfortunately, I don't qualify due to my school type.
- Policies like this are still good for public educators decimated by loans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Recently graduated teaching assistant (San Francisco, CA)
Age: 24 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- Such initiatives make high-need school roles more attractive.
- I'm planning my career moves around such opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $4500000000 (Low: $4000000000, High: $5000000000)
Year 2: $4700000000 (Low: $4200000000, High: $5200000000)
Year 3: $4900000000 (Low: $4400000000, High: $5400000000)
Year 5: $5300000000 (Low: $4800000000, High: $5800000000)
Year 10: $6000000000 (Low: $5500000000, High: $6500000000)
Year 100: $8000000000 (Low: $7500000000, High: $8500000000)
Key Considerations
- Program participation rates among eligible educators will influence costs significantly.
- The potential need for additional appropriations to cover increased administrative demands on the Department of Education.
- Economic impacts on the educational sector, potentially leading to broader economic benefits in education-sensitive communities.
- The cost trajectory of student loans and interest rates over time as these may affect the overall cost of forgiveness.