A Bureaucratic Nightmare on Loan Forgiveness
By Kay Steiger - Jul 23rd, 2008 at 12:54 pmThis is the most fucked up thing I’ve read today. Last year, the much-celebrated College Cost Reduction Act was signed into law. One of the provisions of the law is that you qualify for loan forgiveness if you go into a low-paying public service sector like teaching or social work. The thing is, the Department of Education has decided it won’t tell people if they qualify for loan forgiveness until after they’ve completed 120 payments on their loans–that’s 10 years. So the Department of Education has essentially eliminated any incentive to go into public service. While this could be viewed as the evil Bush administration at it again, it seems more likely that these problems are simply bureaucratic in natures. Higher Ed Watch has more, and Campus Progress has joined with Project on Student Debt set up a petition.
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