A new study of the state’s teacher loan forgiveness program has found that an increasing number of South Carolina educators are choosing to repay their student loans rather than stay in the classroom to have them forgiven. The trend has raised alarms among education officials about the state’s ability to retain teachers.
The study, which was reviewed by a subcommittee of the state’s Education Oversight Committee, focused on the South Carolina Teacher Loan Program. The program was established to attract talented students to the teaching profession by offering forgivable loans. Under the program, teachers can have their loans forgiven if they teach for a specified number of years in critical needs areas.
However, the study found that more participants are opting to repay their loans early. This has resulted in a significant increase in the program’s surplus fund, which has grown to over $23 million, a nearly threefold increase from five years ago. This trend is a clear indication that a growing number of teachers are willing to incur debt to leave the profession.
According to a representative from the Palmetto State Teachers Association, the fact that educators are willing to pay back a loan to leave the classroom should be seen as an “alarm bell” for the state. Lawmakers are now considering how to address this issue, with one budget provision already approved to allow current teachers to refinance their loans at a lower interest rate.
The study found that only about 34% of traditional undergraduate students who borrowed through the program stayed long enough to have their loans forgiven. Experts suggest that fixing retention issues requires more than just financial incentives. They argue that improvements to workplace culture, better professional development, and more support for new teachers are needed to address issues like large class sizes and student behavior.
The findings from the study will be used to inform future budget recommendations aimed at improving teacher recruitment and retention.
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