Victoria Libsack, a teacher at Linus Pauling Middle School in Corvallis, Ore., with students Alan Gallardo, 14, (right) and Victor Hernandez, 14. Libsack taught for three years in a low-income Phoenix school. But after her TEACH Grants were converted into more than $20,000 in loans, she took a job at a school that doesn’t meet TEACH requirements.

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