Teachers in New Mexico have reason to celebrate as the state promised to erase $5 million in student loan debt.
The forgiveness comes courtesy of the New Mexico Higher Education Department via the state's Teacher Loan Repayment Program. Applications will be accepted until August 1.
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The criteria for eligibility is limited to licensed teachers who work in "high-need" fields and schools. Qualifiers could get $6,000 removed from their debt balance yearly for two years. The program was active last year, when the state saw a record number of applicants and helped more than $1,000 teachers erase their student debt. In 2024, an additional $5 million was dedicated by the state to continue the program.
"The Teacher Loan Repayment Program is an essential tool for supporting our hardworking educators, who have chosen a career dedicated to supporting the students of New Mexico, and we encourage teachers to consider applying for this amazing opportunity," Higher Education Secretary Stephanie M. Rodriguez said in a statement.
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"We know that recruiting and retaining teachers is vital to the intellectual and economic strength of our state, and we thank Gov. Lujan Grisham for her continued commitment to assisting educators."
State leaders also said the loan forgiveness program will help with recruiting and retaining teachers in the state.
"Student loan forgiveness for teachers is nothing new, but with student debt hovering at all-time highs, the appeal of different states using it as incentives to meet critical needs is substantial," Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek.
"It's the right call. For years, many states have dealt with teacher shortages, with students and their families being the biggest losers. If this plan can lead to more teachers helping those needing instruction the most, it's a gain on all levels."
New Mexico also has a Teacher Preparation Affordability Scholarship this year that provides grant money for students pursuing teaching degrees. Whether in undergraduate or graduate programs, teachers can apply for the funding, and the scholarship can be renewed every two years.
To qualify for the student loan forgiveness, you must be a U.S. citizen and have lived in New Mexico for at least a year consecutively. You will also need a New Mexico teaching license and teach in the state for three years.
While all teachers are welcome to apply, the state said priority will be given to those teaching in several key areas. This includes those teaching bilingual education, early childhood education, special education, any STEM field as well as career technical education. Teachers who work in a low-performing school with 40 percent or more of the students receiving free or reduced lunch will also be prioritized.
All applications are due online by 5 p.m. Thursday, August 1.
Nationwide Student Debt Forgiveness
The New Mexico program follows a larger push to forgive student debt across the country, courtesy of the Biden administration.
President Joe Biden recently announced an additional $7.7 billion in loans forgiven for 160,000 borrowers. Altogether, the president erased $167 billion for nearly 5 million Americans. The average amount of debt cleared was more than $35,000.
Most of the relief has centered around public service workers or those who have enlisted in the Saving on a Valuable Education (SAVE) plan. Those groups earned $5.2 billion and $613 million in debt forgiven, respectively.
"From day one of my administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity," Biden said in a statement. "I will never stop working to cancel student debt—no matter how many times Republican elected officials try to stop us."
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