How To Prevent TEACH Grants From Becoming Student Loans

The TEACH Grant Program is an program that will give you free money to go to school if you plan on becoming a teacher. 

Currently, the program gives you up to $4,000 per year if you take certain classes and programs to become a teacher. You also have to sign an agreement that states that you will serve as a teacher in certain schools or classes, or else your grant will become a loan.

Here's where the problem lies. You have to do a bunch of specific requirements, and tell your lender regularly that you are following through on these commitments, or your grants will become loans that you have to pay back.

Here's what you have to do to prevent your TEACH Grants from becoming loans.

How To Receive A TEACH Grant

A TEACH Grant can provide you with $4,000 in free money assuming you qualify and meet the service obligations.

To receive a TEACH Grant, you must do the following:

• Fill out the FAFSA
• Be enrolled at a qualifying school
• Be enrolled in a TEACH-eligible program
• Meet certain academic achievement requirements (generally, scoring above the 75th percentile on one or more portions of a college admissions test or maintaining a cumulative GPA of at least 3.25)
• Complete TEACH Grant counseling
• Sign the TEACH Grant service agreement

The money from your TEACH grant will be disbursed directly to your school's financial aid office.

TEACH Grant Service Obligations

To qualify for a TEACH Grant, you have to sign an agreement where you agree to the following service obligation:

• You must teach in a high-need field. Currently, the following fields work: bi-lingual education, foreign language, math, reading, science, and special education.
• You must teach at a school that serves low-income students (Title 1 schools).

You also have to meet the following criteria:

• You must work at least four of your eight years in a school or program that meets the above criteria.
• You must perform this service at a school that meets the criteria for low-income students.
• You must provide the Department of Education with proof of your service.

It's important to note that if you receive a TEACH Grant for both undergraduate and graduate school, you actually owe two commitments, but the four years of service counts towards both.

If you don't follow through on these commitments, your grants will be converted to Direct Loans.

Informing the Department of Education

The biggest issue with TEACH Grants is the fact that you have to inform the Department of Education, or else your grants will be converted to loans.

Starting in Fall 2024, the Department of Education is handling TEACH Grants directly. This is a change from when they would outsource the servicing of them to a network of student loan servicers, like FedLoan and Nelnet.

During the processing pause, you can upload your TEACH Grant certification form on StudentAid.gov; or mail/fax TEACH Grant certification forms or requests for loan conversion, suspension, discharge, or reconsideration of loan conversions to:

Federal Student Aid Programs - TEACH
P.O. Box 300010
Greenville, TX 75403
Fax: 540-212-2415

Ensuring Your TEACH Grant Doesn't Convert To A Loan

First, only send in your certification once you've made copies of everything. Even better, upload them so you keep your original.

Second, make sure that you send it Certified Mail with Return Receipt. This will give you proof of mailing and proof of receipt. Since timing is so important (if you miss by just one day they can convert your grants to loans), you need this proof. If anything happens, the $5 in postage you will pay is totally worth it!

Finally, make sure you follow up if you don't receive confirmation. Sometimes these companies will convert your grants to loans and not even tell you! Make sure that you call and follow up if you don't hear back.

What has been your experience with TEACH Grants?