Student Debt Could Spark Mass Exodus of Teachers

The burden of student debt could cause teachers to leave the industry in droves, a new report from Study.com found.

The teacher shortage has been growing as many educators leave in pursuit of higher-paying jobs with less burnout. The COVID-19 pandemic marked a shift in the labor crisis, as there were 567,000 fewer educators in America’s public schools in 2022 than before the pandemic, according to the Bureau of Labor Statistics.

And a new report from Study.com found that the resumption of federal student loan payments in October could be weighing heavily on teachers, causing even more to leave the industry. According to the data, 71 percent of teachers were considering a career change due to the burden of their resumed payments.

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The news comes as more than half of American school districts reported teacher shortages, the study said. More than half of those surveyed said increased stress was affecting their relationships, and 54 percent had serious disagreements with family members due to continued student loan debt.

Teachers are already at a disadvantage when it comes to paying off their debt because it typically represents a higher percentage of their income than workers in other fields. One in four teachers reported more than $40,000 in federal student loan debt, while 23 percent had between $30,000 and $40,000 in loans.

Even before the loan payments resumed, one in five teachers worked a second job, according to the National Center for Education Statistics. And Study.com’s survey revealed that 51 percent of teachers either already started or will be looking for a second job to manage their debts.

Michael Lux, attorney and founder of the Student Loan Sherpa, said that on the surface, there are many options for teachers trying to lower their debt amount, ranging from President Joe Biden‘s new SAVE income-driven repayment plan and the public service loan forgiveness (PSLF) option, which erases remaining balances after 10 years.

“However, the burden of student debt goes beyond monthly bills,” Lux told Newsweek. “Having student loans makes it far more difficult to qualify for a mortgage. Even if SAVE and PSLF do provide a path to debt freedom, many borrowers struggle to access these resources.”

Many of the teachers are burdened by private student loan debt, as well, and SAVE and PSLF can’t help them.

“Because teachers are often underpaid, managing any private loans becomes especially difficult,” Lux said. “Given all that we expect from teachers and the debt often required to obtain a degree, it doesn’t surprise me that many are contemplating a move to a less stressful and higher-paying line of work.”

While student debt is not the sole cause of teachers leaving the profession, Alex Beene, financial literacy instructor for the state of Tennessee, said it has become a major contributor.

“Teacher salaries in many states remain well below the financial levels of those in other professions, and with student loans just being one aspect of the debt picture most of those in education face, it’s easy to see why they’d look for greener pastures in another career path,” Beene told Newsweek.

While teachers initially enter the industry full of hope for the impact they can make on students, many realize the reality is not what it’s cracked up to be, Beene said.

“As the old phrase goes, ‘teachers come to their profession for the outcome and not the income,’ but that metaphor can only carry you so far when you’re saddled with significant amounts of student debt and the elevated levels of stress most teachers face in our current education landscape,” Beene said.

He added that for many teachers he knows, the extra hours and work and reduced appreciation were the tipping point to leave education forever.

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“I’ve known a few teachers in recent years who told me a decade ago they’d never leave the classroom,” Beene said. “They are now working other 9 to 5 jobs and thriving with more income and less stress. It’s good for them, but bad for the profession. The fewer great teachers we have because of financial concerns, the less academic progress our future students will enjoy.”