Between rising tuition costs and stagnant earnings, it's no wonder that fewer people are pursuing careers in education. How severe is the problem? In the 2005-2006 academic year, 107,235 people earned a bachelor's degree in education. But 15 years later, that number dropped to 89,398 — a decrease of about 17%.

To encourage more people to pursue careers in education, Congress authorized the teacher Education Assistance for College and Higher Education (TEACH) Grant program. With TEACH Grants, students can receive up to $4,000 annually to pay for college.

However, there is a catch: Recipients must complete a service obligation in a high-need field, otherwise the grant is converted into a loan.

What is a TEACH Grant?

The TEACH Grant program is a federal program. As a grant, it provides students with gift aid, meaning it doesn't have to be repaid if the recipient meets the grant's requirements.

Under the TEACH Grant program, eligible students can receive money for each year of their education. In exchange, students must commit to teaching in a high-need field for four academic years at an elementary school, secondary school or educational service agency that serves low-income students. If you don't fulfill the service obligation, the grant is converted into a loan, and it must be repaid with interest.

TEACH Grant Awards

Under the TEACH Grant, the maximum award amount is $4,000. However, the Budget Control Act of 2011 changed the award amounts. The act reduced the award amounts by 5.7% through October 1, 2024, so the maximum amount students can receive until that date is $3,772.

Students can receive a maximum of $16,000 for undergraduate study, and graduate students can receive a maximum of $8,000, minus the 5.7% deduction.

TEACH Grants vs. Pell Grants

The TEACH Grant is one of two grant programs administered by the U.S. Department of Education. The other is the Pell Grant program, which is awarded to undergraduate students with exceptional financial needs.

Pell Grants have higher award maximums — up to $7,395 for the 2023-2024 academic year — and they don't have the service commitment of TEACH Grants.

TEACH Grant eligibility requirements

To qualify for a TEACH Grant, you must meet the following requirements:

• You must be eligible for federal student aid.

• You must complete the Free Application for Federal Student Aid (FAFSA).

• You must be enrolled in an institution that participates in the TEACH Grant program; as of the 2019-2020 academic year — the last available data — there are over 700 institutions that participate.

• You must enroll in a TEACH-eligible program, meaning a program of study that prepares you to teach and leads to bachelor's or master's degrees, or is a postbaccalaureate program.

• You must meet academic requirements set by your college; for example, schools may require you to score in the 75th percentile on college admissions tests or maintain a GPA of 3.25 or higher.

• You must complete TEACH Grant counseling for each year you receive the grant.

• You must sign the TEACH Grant Agreement to Service or Repay contract.

TEACH Grant Service commitment

Unlike other grants, the TEACH Grant comes with a service commitment. You must teach for four academic years at a qualifying school in a high-need field. High-need fields include:

• Mathematics

• Science, including computer science

• Foreign languages

• Bilingual education

• English language acquisition

• Reading specialists

• Special education

• Other fields designated as high-need in the annual Teacher Shortage Area Nationwide listing

Grant recipients must complete the service requirement within eight years of graduating. Otherwise, the grant is converted into a loan. The grant becomes a Direct Unsubsidized Loan, with interest charged from the date of the initial grant disbursement.

You must complete one four-year service obligation for all the TEACH Grants you receive for undergraduate study. You must complete a second four-year service obligation if you also receive TEACH Grants for graduate school. In some cases, you may get credit toward the second service obligation, but you must review the guidelines in the TEACH Grant agreement to find out how your service will count toward satisfying your obligation.

You must notify your loan servicer of your progress as you work towards completing the service obligation. MOHELA is the designated TEACH Grant loan servicer, so you must fill out and submit the TEACH Grant Certification of Qualifying Teaching form after each year of teaching, documenting your work. The form is available through MOHELA or studentaid.gov, and it must be certified by the chief administrative officer of the school or educational service agency that employed you.

TEACH Grant extensions and suspensions

In some cases, you may be eligible for an extension or request a suspension if you are unable to teach for a qualifying reason. For example, you can qualify for an extension in the following circumstances:

• If you return to school to earn a TEACH-eligible degree

• If you have a condition that qualifies for leave under the Family and Medical Leave Act

• If you are called to active duty as a member of the Armed Forces or National Guard

• If your spouse is deployed for a period of at least 180 days

• You live or work in a federally declared major disaster area

Canceling a TEACH Grant

If you decide that you won't complete the TEACH Grant service obligation — for instance, if you decide that teaching isn't the right career for you, or you want to be a stay-at-home parent — you can cancel the grant. Contact MOHELA and request that the grant be converted into a loan.

TEACH Grant Conversion

Whether you cancel the TEACH Grant or fail to complete the service obligation, the grant will be converted into a Direct Unsubsidized Loan, and interest will be charged based on the initial grant disbursement date.

The interest rate on the Direct Unsubsidized Loan is based on your years of study and the interest rate at the time the grant was disbursed.

For example, if your loan was disbursed in August 2023 for undergraduate study, the rate would be 5.50%. But if the loan was disbursed in August 2019 for graduate school, the rate would be 6.08%

How to Apply for a TEACH Grant

To apply for a TEACH Grant, complete the following steps:

• Contact the college financial aid office to find out if there is a separate TEACH Grant application.

• Complete the FAFSA by federal, state, and school deadlines and enter your school code on the form.

• Fill out and submit the TEACH Grant Agreement to Serve or Repay form and enter your school's name and code.

• Complete TEACH Grant counseling that explains the terms and conditions. You can complete the required counseling online.

If you are eligible for a TEACH Grant, it will be listed as part of your financial aid package.

FAQs

Will TEACH Grant loans be forgiven?

TEACH Grants are forgiven if you fulfill the service obligation, meaning you teach full-time in a high-need field at an elementary school, secondary school, or educational service agency that serves low-income students for four academic years within eight years of graduating.

How much money can a TEACH Grant recipient receive each year?

The program allows for a maximum of $4,000 per year, but the current maximum is $3,772, thanks to budget cuts.

How much money can you get from the TEACH grant?

The total maximum you can receive is $16,000 for undergraduate programs and $8,000 for master's degree programs.

How do you qualify for the TEACH grant in my state?

TEACH Grants are a federal program, so they follow federal guidelines rather than state rules. The eligibility requirements and award amounts are the same for all borrowers nationwide.