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Public Service Employment Could Mean Student Loan Forgiveness

Heavy student loans have made it difficult for workers from Gen X and Y to get ahead on their stagnant salaries paired with the rising cost of living. The generally low salaries of public-service jobs have deterred many younger workers from sticking out employment with state, federal, and local governments, but a new law that takes effect Tuesday should help to retain many of these employees and attract some new ones.

The College Cost Reduction and Access Act contains a debt-forgiveness provision that will erase student-loan debt after 10 years of public employment. This Los Angeles Times article titled "Public Service Work Can Wipe Out Student Loans" is a thorough resource that's an easy-to-follow Q&A format. Check it out for more information about loan forgiveness.

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haydee haydee 8 years
I'm a school teacher and working on a low-income school, I am waiting for 2 more years then I can waive a huge amount off my student loan.
macois macois 8 years
These forgiveness plans are very hard to become eligible for. after 5 years of service, most of your loans are paid off anyway. Some require 10 years of service. The average person pays off there student loans in 7-8 years. If you have significant debt, you can't afford to make your monthly payments. For details, visit: http://www.staffordloan.com/repayment/federal-student-loan-forgiveness.php
macois macois 8 years
These forgiveness plans are very hard to become eligible for. after 5 years of service, most of your loans are paid off anyway. Some require 10 years of service. The average person pays off there student loans in 7-8 years. If you have significant debt, you can't afford to make your monthly payments. For details, visit:http://www.staffordloan.com/repayment/federal-student-loan-forgiveness.php
verily verily 8 years
It only kicks in after 10 years? My student loan payoff plan makes me pay it in 10 years. So all they are forgiving is the remainder. It doesn't seem like such a deal to me, especially with the interest bearing portions. And they do cover this particular problem in the FAQ, but advise you to take on the income contingent plan...that seems like you'll only be accruing even more interest to pay off.
Jude-C Jude-C 8 years
I've liked this idea ever since I first heard about it. Loan forgiveness is a big deal--a lot of people I know are in bad places, financially, primarily because of ridiculous student loan debt.
sweetpeabrina sweetpeabrina 8 years
I think this is a bit ridiculous. As a teacher, there's already a program like this in place. However, you have to teach at an underperforming school in an area of need for something like 5 years. The emotional and physical stress of being in a job like that is not worth the money to me. Plus, governement job salaries are not merit based. The longer you work, the more you get paid. But, over a decade you only get a $10,000 raise. In a lot of areas, the small raises over the years don't even cover cost of living increases. Instead of loan forgiveness, the government should work on lowering the cost of state colleges (more grants?) since it seems like more and more people are taking the opportunity to go.
sweetpeabrina sweetpeabrina 8 years
I think this is a bit ridiculous. As a teacher, there's already a program like this in place. However, you have to teach at an underperforming school in an area of need for something like 5 years. The emotional and physical stress of being in a job like that is not worth the money to me.Plus, governement job salaries are not merit based. The longer you work, the more you get paid. But, over a decade you only get a $10,000 raise. In a lot of areas, the small raises over the years don't even cover cost of living increases.Instead of loan forgiveness, the government should work on lowering the cost of state colleges (more grants?) since it seems like more and more people are taking the opportunity to go.
andrennabird andrennabird 8 years
I hope this motivates people to do public service who could not otherwise afford to do so.
SkinnyMarie SkinnyMarie 8 years
This is really cool. I wonder if you can get grandfathered in if you have graduated in the last 4 years or so. Now I just wish the government needed an interior designer. fat chance lol.
snowbunny11 snowbunny11 8 years
Yes!! This is the BEST idea ever. Even though I'm going to my state law school, I'm going to have $100k total debt when I graduate! I really want to work for the govt or go into public service, but I was sincerely considering not going to law school because I couldn't afford the debt on the loans. Now I can pay off like 40% of that, have it forgiven, and actually start saving for retirement in my 30's... I bet this is going to make government jobs even more competitive...
snowbunny11 snowbunny11 8 years
Yes!! This is the BEST idea ever. Even though I'm going to my state law school, I'm going to have $100k total debt when I graduate! I really want to work for the govt or go into public service, but I was sincerely considering not going to law school because I couldn't afford the debt on the loans. Now I can pay off like 40% of that, have it forgiven, and actually start saving for retirement in my 30's...I bet this is going to make government jobs even more competitive...
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