Skip to Content
Skip to Content

Financial Incentives

Financial incentives like scholarships or loan forgiveness can be powerful tools to attract teachers of color into the workforce.

Data updated: August 2023

Go to a policy lever Data Systems Financial Incentives Supports for Teachers of Color Teacher Pipeline Programs
Select a state Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Why focus on Financial Incentives to improve Teacher Diversity?

As the cost of college and the overall cost of living continues to rise, financial incentives like scholarships, loan forgiveness, and strategic pay for working in hard-to-staff schools can help attract a wider range of candidates to the teaching profession, particularly those from underrepresented groups. Since people of color often take on greater levels of student debt,1 financial incentives can make teaching a more viable career path.

State performance on Financial Incentives for Teacher Diversity

Few states use financial incentives to explicitly attract teachers of color, with less than half investing in financial incentives like scholarships or loan forgiveness to increase the number of teacher candidates of color in traditional preparation programs. While roughly half of all states use financial incentives as a recruiting mechanism for teachers in general, few states use financial incentives to attract teachers of color explicitly.

NCTQ evaluates whether states are effectively using this policy lever by examining whether they support targeted scholarships for teacher candidates, fund loan forgiveness programs, and incentivize districts to offer additional compensation to teachers working in hard-to-staff schools. It is important to note that our current analysis does not focus on financial incentives for candidates of color specifically. Explore the key actions below to learn more about how each state is implementing policies to diversify its workforce. (NCTQ does not currently assign rankings to states for this policy area.)

What are the key actions states should take?

  • Key Resources

    State of the States 2023: Teacher Diversity

    Explore NCTQ’s comprehensive scan of state teacher diversity policies.

    Teacher Diversity Dashboard

    Explore trends and efforts to diversify the teacher workforce both nationwide and in your community.

    Increasing teacher diversity: Four ways districts can take action

    Learn more about how districts can create the conditions for a more diverse workforce.

    Smart Money 2.0

    Uncover teachers' salaries across 90 districts nationwide, learn about strategies to increase pay, and discover missed opportunities for raising compensation and improving outcomes.

    References
    1. Carver-Thomas, D. (2018b). Diversifying the teaching profession through high-retention pathways. Learning Policy Institute.
    2. Carver-Thomas, D. (2018b). Diversifying the teaching profession through high-retention pathways. Learning Policy Institute.
    3. Fiddiman, B., Campbell, C., & Partelow, L. (2019). Student debt: An overlooked barrier to increasing teacher diversity. Center for American Progress.
    4. Rothstein, J., & Rouse, C. E. (2011). Constrained after college: Student loans and early-career occupational choices. Journal of Public Economics, 95(1-2), 149-163.
    5. Baum, S., & O’Malley, M. (2003). College on credit: How borrowers perceive their education debt. Journal of Student Financial Aid, 33(3): 7-19.
    6. Achinstein, B., Ogawa, R. T., Sexton, D., & Freitas, C. (2010). Retaining teachers of color: A pressing problem and a potential strategy for “hard-to-staff” schools. Review of Educational Research, 80(1), 71–107. https://doi.org/10.3102/0034654309355994