Challenges

Scalability, Worker Issues

Location

Arkansas, Colorado, Minnesota, New Hampshire, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas

Stakeholders

Nonprofits, State Government

Beneficiaries

Job Seekers

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Overview

The T.E.A.C.H. Early Childhood® Scholarship Program is an innovative public-private initiative that addresses low qualifications and high turnover in the childcare workforce by offering comprehensive scholarships and incentives for educators to pursue college degrees and credentials.

Key Impact Metrics

  • 15,318
    childcare educators receiving scholarship
  • 95–97%
    annual retention rate
  • 8–10%
    wage increase among T.E.A.C.H graduates

Problem

In the 1980s, during the time the T.E.A.C.H. Scholarship program was being formulated, only 12–15% of childcare workers had a college degree, and many lacked formal training in child development. In addition to low education levels, childcare workers also struggled with low wages, which made it difficult to attract and retain skilled educators. There was a need to break the cycle by helping educators advance their qualifications—meeting rising standards like universal pre-K—while also giving them reasons to stay in the field through better compensation. Traditional financial aid wasn’t enough; childcare workers needed comprehensive support, including tuition, books, and paid release time, to succeed in school while working full-time.

Solution

The T.E.A.C.H. program was introduced in 1990 to provide a comprehensive scholarship model that links education, compensation, and commitment to improve the quality of early education. It provides financial and professional support to childcare workers pursuing credentials and degrees in early childhood education, while encouraging retention through incentives. Each scholarship is jointly funded by the state (often via a nonprofit intermediary), the employer (such as a childcare center or home-based provider), and the educator (through a modest co-pay). A typical breakdown might look like this: the state contributes 60% of tuition, the employer 20%, and the childcare provider 20%—which is often offset by a Pell Grant or waived, leaving little or no out-of-pocket cost for the teacher. Upon completing coursework or earning a credential, teachers receive a raise or bonus, and employers commit to a set wage increase. The program is administered by a state-level nonprofit (usually a resource and referral agency or AEYC affiliate), which manages outreach, application support, data tracking, and one-on-one counseling to help participants balance work, school, and life responsibilities.

Results

  • Beneficiary Impact165,297 children served, 97,759 credit hours completed, and less than 15% annual turnover rates among T.E.A.C.H Scholars
  • Employee Impact$12.5 per hour average earnings of teachers on T.E.A.C.H scholarship, and 28.6% of recipients worked with children in publicly funded pre-kindergarten programs
  • Financial Results$47 million of government funding provided

Replication Tips

  • Involve colleges: Partner with community colleges and universities to offer flexible class schedules (evenings, online cohorts for T.E.A.C.H. participants). Having a dedicated advisor at the college who understands the program can smooth admissions and credit transfers for students.
  • Combine with compensation initiatives: For maximum impact, implement a wage supplement or bonus program in tandem. Education plus better pay yields the strongest retention.

Suggested Implementation Timeline

~12-24 months

Sources