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Financial incentives are increasingly seen as a viable strategy to improve teacher recruitment and retention. Yet, these programs have shown limited or mixed results and little research has examined how students’ perceptions influence their participation. Using subset of data from a larger longitudinal, mixed-methods study, we investigate teacher education students’ perceptions and decision-making related to their participation in the University-administered forgivable loan program. We find that students weighed both financial and non-financial costs and benefits, and that their assessments were influenced by their financial resources, pre-existing career plans, and attitudes toward borrowing. Our findings offer insights into how, why, and under what conditions financial incentives may shift teacher workforce behaviors.