Loan-Forgiveness Programs on the Chopping Block

[Sally_Rubenstone]

<p>According to this New York Times article:</p>

<p>

From Kentucky to Iowa to California, loan forgiveness programs are on the chopping block. Typically founded by their states to help students pay for college, the state agencies and nonprofit organizations that make student loans and sponsor these programs are getting less money from the federal government and are having difficulty raising money elsewhere as a result of the financial crisis.</p>

<p>The organizations say the repayment programs have been hurt by a broader effort by Congress to tackle the high cost of the federal student loan program by reducing subsidies to lenders.

</p>

<p>To read it all see: <a href=“http://www.nytimes.com/2009/05/27/your-money/student-loans/27forgive.html?_r=1[/url]”>http://www.nytimes.com/2009/05/27/your-money/student-loans/27forgive.html?_r=1&lt;/a&gt;&lt;/p&gt;

<p>I have known excellent teachers and nurses who have benefited from these programs that are now endangered. </p>

<p>Perhaps we need to keep such options available and, instead, come up with creative ways to fund them … such as imposing extra debt on everyone who goes into annoying careers like cigarette manufacturing and telemarketing. ;)</p>

[NikkiiL]

<p>And quite honestly, it is going to get worse if Obama and his administration do away with FFELP loans and force all schools into Direct. This is the calm before the storm.</p>

[isu_teacher00]

<p>Ugh…I can’t say I’m surprised. I was able to benefit from one of these programs - teaching in a low-income school for five years allowed me to take 5K off of my undergraduate debt. There are so many reasons that these programs are valuable for teachers, nurses, etc - I see a fair number of kids who want to go into education but are a little leery of making a committment to a program that will reduce their college tuition in exchange for teaching in oftentimes difficult situations. Loan forgiveness programs allow people to make the decision to teach in desperately needed areas when they’re a little bit older and perhaps wiser. It’s a shame that these programs might not be around for our future educators.</p>

[sk8rmom]

<p>Although state forgiveness/grant programs may be slipping, the federal TEACH grant seems to provide a bit more help than any previous incentives, although it does target both high need subjects and low income districts. It offers a $4K/year grant (not loan, which only converts to an unsub Stafford if the teaching requirement isn’t met) which, unlike many of the need based grants, can be applied to EFC. The service requirement is only 4 years per program (not per grant year) that the student received funds for:
<a href=“http://studentaid.ed.gov/students/attachments/siteresources/4807Teach_FactSheet_v3.pdf[/url]”>http://studentaid.ed.gov/students/attachments/siteresources/4807Teach_FactSheet_v3.pdf&lt;/a&gt;
<a href=“https://teach-ats.ed.gov/ats/images/gen/factsheet.pdf[/url]”>https://teach-ats.ed.gov/ats/images/gen/factsheet.pdf&lt;/a&gt;&lt;/p&gt;

<p>It seems like a good program for any student who’s even considering teaching to apply for. Any thoughts on this?</p>

[sybbie719]

<p>Although there is a freeze on hiring the NYC DOE has still has the Teachers of Tomorrow program, an opportunity for a newly hired certified teacher to earn an additional tax-free grant of $3,400 for each year of satisfactory service up to four years for a total of up to $13,600.</p>

<p>[Teachersof</a> Tomorrow - Financial Support for Incoming Teachers - New York City Department of Education](<a href=“http://schools.nyc.gov/TeachNYC/IncentiveAndScholarshipPrograms/FinancialSupportIncomingTeachers/Teachers+of+Tomorrow.htm]Teachersof”>http://schools.nyc.gov/TeachNYC/IncentiveAndScholarshipPrograms/FinancialSupportIncomingTeachers/Teachers+of+Tomorrow.htm)</p>

<p>In addition, they will pay for bachelors and master degree programs in shortage areas such as specified bilingual and monolingual areas of education and pupil personnel services. A full scholarship is offered in exchange for a service commitment. The Loan Forgiveness Program offers prospective employees who have obtained New York State Certification as teachers and clinicians in specified shortage areas the repayment of student loans</p>

<p>Currently, scholarships and loan forgiveness are available for the following critical teaching shortage areas: </p>

<p>Bilingual Special Education
Monolingual and Bilingual Visually Impaired</p>

<p>In addition, scholarships and loan forgiveness are available in the following speech and clinical school positions:</p>

<p>[Scholarship</a> and Loan Forgiveness Programs - Financial Support for Future Teachers - New York City Department of Education](<a href=“http://schools.nyc.gov/TeachNYC/IncentiveAndScholarshipPrograms/FinancialSupportFutureTeachers/schlrshpandloanfrgvns.htm]Scholarship”>http://schools.nyc.gov/TeachNYC/IncentiveAndScholarshipPrograms/FinancialSupportFutureTeachers/schlrshpandloanfrgvns.htm)
Monolingual and Bilingual Speech and Hearing Handicapped
Bilingual School Counseling
Bilingual School Psychology
Bilingual School Social Work</p>

<p>so, still under the College Cost Reduction and Access Act of 2007, if a you make 120 qualifying loan payments on a Federal Direct loan (including Federal Direct Consolidation loans) while working full-time for 10 years in public service employment, the unpaid balance on the loan is forgiven by the federal government.</p>

<p><a href=“http://www.equaljusticeworks.org/files/ejw_ccraa.pdf[/url]”>http://www.equaljusticeworks.org/files/ejw_ccraa.pdf&lt;/a&gt;&lt;/p&gt;