When teachers struggle with debt, consolidation options can help …
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When you think of essential professions, teachers always make the list. As the saying goes: “if you can read this, thank a teacher.”
Despite the profound impact they have on our society, their paychecks rarely reflect their importance. Many teachers struggle with financial challenges, like student loans, high living costs and unmanageable debts.
If you are a teacher struggling financially — or know one — there are practical steps you can take. Solutions like debt consolidation, for example, can simplify repayment and create a pathway out of debt that saves teachers time and money on their consumer debt.
Teachers struggle with debt for many of the same reasons as everyone else — but the profession also comes with unique financial challenges. High student loan payments paired with low-salaries that haven’t kept pace with inflation create a particularly tough situation. On top of that, many teachers pay out of pocket for classroom expenses and school supplies, further stretching tight budgets.
Teaching is also a high-stress career, and financial pressure only adds to this strain. It’s not surprising that many teachers take on second jobs or, in some instances, leave teaching in search of better paying work.
Let’s break down some of the reasons teachers struggle financially …
Becoming a teacher typically requires years of higher education, and the majority leave school with significant debt.
According to the Learning Policy Institute:
Despite already carrying debt from undergraduate programs, many teachers take on graduate degrees (master’s or doctoral) to increase their pay. While these credentials can improve long-term earning potential, they often require tens of thousands of dollars in additional loans.
Median student loan debt for teachers with master’s degrees is $72,000, and repayment can stretch across decades once interest is factored in.
High student loan payments make it harder for teachers to cover day-to-day expenses. A 2021 NEA report found that educators with outstanding student loans were more likely to face financial challenges, with 35% struggling to pay off credit card balances.
This creates a ripple effect: salaries already stretched by student debt push many educators toward credit card dependency for basic expenses like groceries, utilities, and transportation.
Over time, this compounds their financial stress.
The federal government recommends a variety of different forgiveness and relief options for teachers. Among them is the Teacher Loan Forgiveness program (TLF).
However, it’s important to note that inconsistent implementation and confusing requirements sometimes leave teachers frustrated with these options.
Sources: Learning Policy Institute, EducationWeek, National Education Association
Compared to professionals with similar degrees, teachers earn significantly less. A 2024 Economic Policy Institute (EPI) study estimated that teachers face a record-high “pay penalty,” earning about 73 cents for every dollar earned by other college-educated workers.
This 23% wage gap makes it harder for teachers to pay down debt, buy homes, or save for the future, leaving many financially insecure despite advanced education.
Without adequate safety nets, teachers may turn to credit cards or loans to make up shortfalls.
Source: Economic Policy Institute
Teacher salaries have not kept pace with inflation or the rising cost of essentials:
Unsurprisingly, financial stress is widespread. A 2024 Harris Poll found that 61% of U.S. teachers reported being financially stressed, with many citing their low income relative to their education level as the main cause.
Sources: Economic Policy Institute, 2024 Harris Poll
On top of student debt and low salaries, teachers often fund classroom supplies themselves. In 2024, 94% of teachers reported spending their own money on school materials, averaging about $750 per year. Over a career, that adds up to thousands of dollars that could otherwise go toward debt repayment or savings.
Sources: Study.com, National Education Association
Many teachers, especially early in their careers, relocate for work opportunities. Costs such as moving expenses, security deposits, and state certification transfers can force them to rely on credit cards or loans just to get settled.
Debt consolidation options are practical solutions for teachers juggling multiple consumer debt payments. Although federal student loans are eligible, many types of unsecured debts can be consolidated like credit cards, personal loans and some medical debts.
For student loan relief, teachers should look to debt consolidation options specifically for federal loans. Those are handled separately and not eligible for consumer debt consolidation options.
When you consolidate your debt you could:
You may need help if …
We’ve helped 700,000+ hardworking Americans, including many teachers, with billions of dollars in debt.
Teachers trust us because our approach is compassionate, proven and focused on fostering financial literacy and independence for our clients.
Consolidation Specialists at Accredited Debt Relief regularly help teachers, nurses, veterans and people from all walks of life with consolidation options that relieve their financial pressure.
1. Schedule a free consultation
2. Choose a personalized debt consolidation plan
3. Start saving with reduced payments
