There's a new federal grant in town. It's called TEACH.
Beginning 2008-09, TEACH is available to students who agree to teach in a high-need field at a public or private elementary or secondary school that serves students from low-income families. Students can receive up to $4,000 per year in grant. Sounds good, right? Not necessarily.
To fulfill your TEACH obligations, you must teach for four consecutive years within eight calendar years of completing your program. If not, that grant turns into a Federal Direct Unsubsidized Stafford Loan and interest compounds from the date you received the grant. Clearly, this grant is for the student who seriously intends to fulfill the requirements.
Let's say you receive 2 years of TEACH for $8,000. After graduation, you are unable to find a teaching job that meets the requirements until 5 years later. Obviously, you can't teach for 4 years within the 8 year deadline, so your grant will turn into unsubsidized loan with interest backdated to the dates you received the TEACH grant. The grant should actually turn into a loan after the 4th year you have not been teaching in the required field.
Also keep in mind that while you may want to participate, your school has the option of whether or not to adminster the program. The rules and regulations were distributed very late, so even if your school does opt to participate, there may be a delay in administering the program. Also, schools are not required to find students who may be interested in the program. There is a question on the FAFSA you should answer if you wish to pursue this grant.
This post is not to go into the details of the program. You can read more on the TEACH Fact Sheet. It's very important that you be aware this could turn into a huge loan if you choose to participate. Should you decide to apply for TEACH, contact your school to determine if you meet the requirements. Each school has its own definition of acceptance into the teacher education program.