South Carolina Invests $10 Million in New Teacher Recruitment and Retention Programs

South Carolina teachers have a new opportunity to refinance their student loans at a 2-percent fixed rate and, in some cases, receive loan forgiveness in return for teaching in the state’s public schools. The new programs offered by South Carolina Student Loan Corp. (SCSLC) — the state’s leading nonprofit educational lender — were funded with a $10 million budget proviso authored by Rep. Neal Collins (R-Pickens).  

 “I believe public education is the foundation for the success of our state’s young people. This program is intended to provide financial support for teachers to keep them in the classroom,” said Collins. “This is our way of showing them their service is important to the people, especially the children, of South Carolina.”

 “South Carolina’s teachers are doing some of the most important work in our state, and we want them to know we have their backs,” said State Superintendent of Education Ellen Weaver. “By helping educators keep more of their hard-earned money in their pockets, we’re investing in them and removing one more barrier to building a long and rewarding career serving South Carolina students.”

In 1984, the South Carolina legislature created the SC Teacher Loan program, administered by SCSLC, as part of the Education Improvement Act. That program provided state-sponsored forgivable student loans to South Carolina residents who entered the teaching profession. The 2025 legislative appropriation creates a new opportunity for teachers who didn’t participate previously in the teacher loan program to refinance their student loans for better terms. It took a year of planning before launching the programs. 

“We see this as a continuation of the support we have provided to South Carolina teachers for more than 20 years,” said Ray Jones, chief products officer for SCSLC. “As a nonprofit supported by the state, we work in partnership with our elected officials to support teacher recruitment and retention. This new state investment provides a financial incentive for many teachers that will lower their monthly loan payments.” 

The budget proviso enabled SCSLC to create two loan products, which launched on Sept. 30, allowing teachers to refinance their existing student loans with better terms. Half of the funding – $5 million – will be used to lower the interest rates for eligible borrowers to 2 percent for the life of the loan. The other $5 million will also reduce interest rates to 2 percent but will allow them to be fully forgiven for teachers working in eligible school districts with a critical need over five years.   

More information about the new loan repayment programs and how to apply can be found here.