<p>As part of a Financial Aid package, my D received a TEACH Grant/Loan. From what I understand she will get $4000 per year, but has to agree to teach in a low-income area, in a subject that is in high demand (teacher shortage), for 4 out of the 8 years following graduation. If that requirement is not met, the grant becomes an Unsubsidized Stafford. A note was attached to the package saying that these grants have not been finalized, so may have to be adjusted (I am assuming that means by the government). Also, a footnote someplace that said most people getting these grants do not meet the teaching requirements, so they become a loan.</p>
<p>My questions:
*These are new for 2008-09, so how do they know most revert to loans?
*Music is listed as needed in some states for some years, but seems to change yearly, so how do you predict that one?
*Low-income areas also change from year to year, so what are the chances of a job opening that satisfies both - and somehow finding that job?</p>
<p>A $4000 grant would be nice, but if it reverted to loans, she would be about $40K in debt as opposed to $20K, and on a beginning teacher salary, that is a bit stiff. So I am not sure we will go for this! Has anyone else gotten this as part of a package, and what are your thoughts?</p>
<p>I read about this program with interest since my son is an education major, but the fact that it turns into an unsubsidized loan if you aren't able to fulfill the requirements is a major turnoff. It's too early to predict where he will get a job, how long he would be in a specific school system depending on their needs and him being low man on the totem pole, as well as which schools qualify for the income guidelines from year to year. Thus, my initial excitement for this program fizzled quickly.</p>
<p>They have had similiar programs in place for a while -- and I did some cost comparison. If you teach in a high demand area (and science and math are consistently high demand) you can shop around different school districts for the best salary. The differences in our area (within a 2 hour drive) for a salary for a starting teacher range from $26,000 to $34,000. As you can imagine -- the district paying $26,000 qualifies for both the low-income and the high demand. the district that pays $34,000 does not (nor do any of the districts that pay more than $29,000 for starting year salary.</p>
<p>When I did the math, it would be more beneficial to take the job that pays more -- and pay off the grant turned into a loan (particularly since the higher paying jobs usually have better benefits, better chances to move up in ranks and better job conditions. With an $8000 difference in starting salary, she could pay off the loans in a bit over 2 years (when you factor in interest).</p>
<p>So -- it might be a wash either way. Think long and hard about committing to working in a rural area that is low-income. Most teachers only last one year. The job conditions, low pay, lack of student interest, lack of parental involvement and high turnover in staff and teachers make the job not much fun.</p>