Loan-Forgiveness Programs on the Chopping Block

Sally_Rubenstone
Wed, 27 May 2009 15:40:01 +0000

According to this New York Times article:



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.

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.



To read it all see: http://www.nytimes.com/2009/05/27/your-money/student-loans/27forgive.html?_r=1

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

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. ;)