Many state schools have raised the cost of tuition to supplement loss in revenue from other areas. IU campuses have certainly followed suit. As college students, many of us are facing not only the obvious dilemma of how we are going to afford the current spike in our tuition bills but also whether or not we are going to even be able to find jobs after graduation to pay off student loan debt. While looking for jobs for after graduation, consider a position in public service. Justin Pope from CBS News discusses the Obama administration’s plan to provide a bit of relief for student loan borrowers:
“Obama will use executive authority for two loan-relief measures. First, he will move up the start date — from 2014 to 2012 — of a plan Congress already passed that reduces the maximum repayment on federal student loans from 15 percent of discretionary incomes to 10 percent. The White House says about 1.6 million borrowers could be affected, and that remaining debt would be forgiven after 20 years, instead of 25.
The administration also will allow 5.8 million borrowers with outstanding loans from two federal programs — direct lending the Family Education Loan Program — to consolidate into a direct loan, potentially saving some borrowers hundreds of dollars per month.
Those changes may not help new borrowers much, but they could put cash in the pockets of millions still paying back their loans. They also could encourage more borrowers to take advantage of the income repayment options that are already in place, but not widely known. Finally, by consolidating into direct lending, more could qualify for that program’s public service loan forgiveness, which can forgive debts after just 10 years of repayments for people working in nonprofit or public service jobs.”
Ok, so let me back up and bring you up to speed. Yes, the Federal Government has a student loan forgiveness program for those that are interested in public service jobs after graduation. This includes teaching, nursing, military and law enforcement jobs as well as jobs with non-profit organizations. However, you must meet certain requirements in order to qualify for loan forgiveness, at least for this new program.
- Direct Loans are the only loans eligible under this new program
- You first loan disbursement must have been made no earlier than 2008
- You must receive a disbursement at some point in 2012
- Your current student loans cannot be in default
This could potentially be a good way to go. However, if you decide to enroll in this program (enrollment is from Jan-Jun 30th 2012) make sure you keep immaculate records on where you’re employed (keep all pay stubs, W-2’s, etc.) and on the 120 payments you will be making (make copies of checks, print out bank statements). Make sure you have your bases covered.
For more details and FAQ’s on Student Loan Forgiveness click here
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youngreginald
November 22, 2011
It’s nice that the government is taking the steps to change the 25 year mark to 20 years. College is big business and we students keep the businesses going. However, nowadays, our business investment isn’t paying off and we can’t even get a refund. The least the government could do would be to forgive those who are still paying a loan 20 years later. Blog with me, read and think about it, “What’s the Value ($) of a College Education?” See you there!
arice351
November 22, 2011
You make a valid point, my friend. Unfortunately, there are never any guarantees in business. As far as your question about the value of a college education goes, I’ve come to a few realizations over the last 3 years (and after changing my major 6 times). You (and by you, I mean people in general) can’t really put a price on an education and you have to go for a career that will make you happy. Money for me, is no longer enough motivation. Either way, life is going to be a struggle. I would rather pursue course work that interests me, courses that challenge me versus pursuing a degree because I think I’ll make more money. In the end I think I would just end up back in school going for what I wanted to study in the first place. Why not try to get it right the first time around? I’m not so concerned about the price of getting a degree as I am the quality of the content in the courses I take, and whether or not those courses will give me the tools I need in the future.