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: Sen. Lujan, Ben Ray [D-NM]
Target Audience
Population: People working in early childhood and high-need public schools eligible for loan forgiveness
Estimated Size: 5500000
- The primary impacted population is individuals working in early childhood education and high-need public schools.
- There are existing educator workforce numbers available both globally and specifically for the US, especially in early childhood education.
- There is a global demand for teachers and educators, particularly in high-need areas and low-income regions.
- The U.S. has had programs targeting educators for loan forgiveness previously, and this bill significantly extends this program.
- Globally, teachers are estimated to number over 85 million, according to UNESCO data.
- The expansion includes not just teachers but also administrators and program directors in certain education sectors.
Reasoning
- The target population includes around 5.5 million individuals who are educators in early childhood and high-need public schools.
- The policy proposed is expected to directly impact those with outstanding student loans by reducing their financial burden, thus potentially improving their overall wellbeing.
- A consideration is the relatively large number of educators who may be geographically dispersed and associated with varying costs of living across different states.
- While the policy's financial scope is limited, it is sufficient to handle a substantial number of participants, given the estimated loan forgiveness figures per individual.
- The diversity of roles included in the policy means a wide variety of educators - from classroom teachers to administrators - are potentially affected, with different levels of impact.
- The wellbeing factors are influenced by financial stability; thus significant reduction in debt payments would likely increase subjective wellbeing scores.
- Some educators without student debt or those who fall outside of the eligible roles may not experience any direct impact.
Simulated Interviews
Elementary School Teacher (Austin, TX)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- This policy would significantly ease my monthly financial burden.
- It's motivating to know that staying in my current role will lead to loan forgiveness.
- I believe this will help retain more teachers in high-need areas.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
School Administrator (Chicago, IL)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- This policy might change my financial situation drastically, allowing for more personal investments.
- I welcome that administrators are included since we face high loan debts too.
- This type of support is essential for continuing in our roles effectively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Early Childhood Educator (Cincinnati, OH)
Age: 25 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This policy would provide huge relief early in my career path.
- Loan forgiveness will allow me to focus on career development without worry.
- I'm hopeful this encourages more to join early childhood education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
Public High School Teacher (Los Angeles, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- This policy won't impact me directly as my loans are fully paid.
- It would be great for new teachers joining the field though.
- Such financial support might help improve the education system overall.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Early Childhood Program Director (Brooklyn, NY)
Age: 30 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Being included in this policy recognition validates our work in early education.
- Different people will benefit in various ways, which is positive.
- I'm particularly excited for what this means for retaining quality educators.
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 | 7 | 5 |
| Year 20 | 6 | 5 |
Middle School Teacher (Buffalo, NY)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- This should have happened much earlier for educators, but better late than never.
- This addition would help me redirect finances toward savings.
- Policies prioritizing educators are always welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
High School English Teacher (Houston, TX)
Age: 38 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- As I've paid off my debts, this policy won't impact me.
- Happy for my fellow educators who'll benefit.
- I will continue advocating for further educator policies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Special Education Teacher (Phoenix, AZ)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- This forgives the financial burden of pursuing necessary certifications.
- Good move to include special education under the high-need category.
- Could improve retention in my field.
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 | 6 |
Principal at High-need School (Miami, FL)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- I've already benefited from loan forgiveness programs.
- This will aid in recruiting new educators.
- It's a positive step for educator retention.
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 |
Middle School Science Teacher (Seattle, WA)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- This policy greatly increases my ability to focus on innovative teaching.
- Planning for the future can finally take precedence over loan payments.
- Overall morale and job satisfaction would improve.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $2000000000 (Low: $1500000000, High: $2500000000)
Year 2: $2100000000 (Low: $1550000000, High: $2600000000)
Year 3: $2200000000 (Low: $1600000000, High: $2700000000)
Year 5: $2400000000 (Low: $1800000000, High: $2900000000)
Year 10: $2800000000 (Low: $2100000000, High: $3400000000)
Year 100: $3500000000 (Low: $2700000000, High: $4300000000)
Key Considerations
- The program could aid in reducing turnover and enhancing teacher retention in high-need areas.
- There is a need to establish effective mechanisms for monitoring and administrating loan forgiveness efficiently.
- The impact on higher education institutions might be subdued unless closely tied with loan origination policies.