Educators making plans to put student loan payments back in their budgets
September 13 2023 - 4:15PM
Business Wire
Student Loan Solutions accounts can help
educators receive Public Service Loan Forgiveness for balance of
student loan debt
Half of educators with student loan debt say that resuming
federal payments in October will have a major impact on their
household’s finances. The new data, released by Horace Mann today,
underscores the importance of supporting educators’ financial
wellness at a time when many public schools report difficulty
filling teacher vacancies.
After the three-year U.S. student loan payment pause spurred by
the COVID-19 pandemic ended, interest began accruing on federal
student loan debt on Sept. 1. The first payments are due in
October.
About half (51%) of educators with student loan debt said this
will have a major impact on their financial wellness, according to
a Horace Mann Educators Advisory Panel survey. An additional 25%
said it will have a minor impact on their financial wellness, while
23% said it would have no impact.
Educators plan to adjust their budgets to accommodate the
additional expense by:
- Cutting back on non-essentials like hobbies, restaurants and
vacations (76%);
- Saving less, or using savings to meet expenses (62%);
- Considering working a second job (51%); and
- Cutting back on essentials, such as food or clothing, or
finding lower-cost alternatives (48%).
“Educators are critical to the success of our communities, and
their financial stress is apparent in the measures they are
considering come October,” said Horace Mann Vice President Tom
Kammerer. “Educators shouldn’t have to get a second job or cut back
on essentials just to continue their important work for our
communities.”
Loan forgiveness still an opportunity for educators
There is an avenue for U.S. educators to address their
disproportionately high student loan debt. Through the Public
Service Loan Forgiveness Program, educators can have the balance of
their federal student loans forgiven after 10 years of qualifying
payments. The program, enacted in 2007 to even the playing field
between private and public sector job opportunities, is unaffected
by the Supreme Court’s June decision to block the Biden
administration one-time forgiveness plan.
“The good news for educators is that they are eligible for
qualifying monthly payments during the federal pause, which means
they are over three years closer for forgiveness,” Kammerer said.
“Through Horace Mann’s Student Loan Solutions program, all K-12
educators can get free online help on how to navigate the student
loan forgiveness process, including certifying employment with
eligible employers.”
Educators can sign up at horacemann.com/student-loan-debt-help.
Administrators interested in providing Student Loan Solutions as a
no-cost district-wide benefit offering can get more information at
horacemann.com/student-loan-debt-help/schools.
The Horace Mann Educator Advisory Panel data is from a
nationally representative survey of 441 U.S. educators, including
public school K-12 teachers, administrators and support personnel.
It was fielded in July following the Supreme Court decision. Full
results are available at horacemann.com/repayments.
About Horace Mann
Horace Mann Educators Corporation is the largest financial
services company focused on helping America’s educators and others
who serve the community achieve lifelong financial success. The
company offers individual and group insurance and financial
solutions tailored to the needs of the educator community. Founded
by Educators for Educators® in 1945, the company is headquartered
in Springfield, Illinois. For more information, visit
horacemann.com.
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Media: Michelle Eccles Public Relations Manager
217.788.5394 michelle.eccles@horacemann.com
Investors: Heather J. Wietzel Vice President, Investor
Relations and Enterprise Communications 217.788.5144
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