Student loan forgiveness program a blessing and a curse. Abroad swath of public service workers - including school, government, health care, nonprofit and military employees - can have their remaining student loan balances forgiven after 1. President Bush's signature. The program, however, will benefit future public servants more than existing ones because payments made before Oct. Only payments made after Oct. That infuriates David Rapaport, a history teacher at Palo Alto High School who has been working in the public sector and paying off his student loans for 1. It should reward the people who have already made the commitment to do the job. The people it's going to help haven't even committed to public service yet. Rachel Racusen, a spokeswoman for Rep. George Miller, D- Martinez, one of the bill's sponsors, says, . ![]() Bush is expected to sign it. Like almost everything Congress cooks up, it is shamefully complex. Public- sector workers who are paying off student loans should do their best to understand it, however, because there are two things they should do now to get the most out of the program. The lower your income and the higher your debts, the more benefit you will get from the program. People with higher incomes might not benefit at all. DEPARTMENT OF HEALTH AND HUMAN SERVICES HEALTH RESOURCES AND SERVICES ADMINISTRATION bureau of clinician recruitment and service. State Loan Repayment Program (SLRP) Program Description. Registered Nurse, Nurse Practitioner (psychiatry specialization) Physician Assistant (psychiatry specialization) Health Service Psychologist, clinical or counseling (Ph.D. President Obama's expanded income based repayment program can provide relief to some student loan borrowers, but has some serious drawbacks. Education lenders laying off staff (including attrition): 22 total Bank of America Brazos Higher Education Service Corporation, Academic Finance Corporation Campus Door College Loan Corporation CoreFirst Bank & Trust Edamerica. Click to meet the 2014 Hawaii State Loan Repayment Program Recipients. Family Medicine Residency Program. The Hilo Medical Center is establishing a rural Family Medicine Residency Program on the island of Hawai’I, located in. President Obama recently introduced a new student loan forgiveness program, which offers significant advantages to those who have utilized federal student loans. These include: A Complete forgiveness of federal student loan. Oregon Partnership State Loan Repayment (SLRP) page. Applications are available now. Please submit your application via email or fax. Applications are reviewed on a first come first serve basis. NIH Loan Repayment Programs. Supporting Scientific Discovery. The NIH Loan Repayment Programs (LRPs) are a set of programs established by Congress and designed to recruit and retain highly qualified health. The New Hampshire State Loan Repayment Program provides funds to health care professionals working in areas of the State designated as being medically underserved. For a student with $1. About 2. 5 percent of workers are in occupations covered by the program, according to census data. To qualify, employees must make 1. The program covers only government guaranteed Stafford, graduate Plus and consolidation loans that were issued under the U. S. Department of Education's direct lending program. A minority of colleges offer these direct loans. Most students get their Stafford and Plus loans from banks and other private- sector lenders through the Federal Family Education Loan Program. Loans made through this program are not eligible for the forgiveness program. However, a student with what are called FFELP loans can consolidate or reconsolidate them into a direct loan, which would be eligible for forgiveness. Perkins loans are eligible only if they are consolidated into a direct loan. Private student loans are not eligible for the new program. Neither are Plus loans taken out by parents. Normally, Stafford and Plus loans are paid off over a 1. A student who pays off loans over the normal repayment period will have nothing left to forgive after 1. To take advantage of the program, borrowers would have to stretch their payments beyond 1. One way to do this is by entering an income- contingent repayment program. This program is open to anyone regardless of occupation, but it is restricted to federal direct student loans, so a borrower would have to have or consolidate or reconsolidate into direct loans to participate. In this program, borrowers can have their monthly payments capped. In most cases, the cap is 2. The poverty line today (in the 4. Suppose a borrower has $4. His poverty line is $2. His annual income exceeds his poverty line by $1. Twenty percent of that number is about $3,8. His monthly payment would be capped at $3. Any amount over $3. After 2. 5 years, any remaining loan balance is forgiven. This program exists today. The bill on Bush's desk creates a new, more generous program called income- based repayment, but it doesn't start until July 1, 2. Under the new program, loan payments are capped at 1. Under this program, the borrower in the above example would have his payments capped at $1. This new program applies to both FFELP and direct student loans and also forgives remaining loan balances after 2. Those who go into public service can have their balances forgiven after 1. What can borrowers do now? If you are in or going into public service and anticipate having low income and high debt, . When income- based repayment becomes available July 1, 2. If you are married, the income used in the formula includes your and your spouse's income. That's because more borrowers will switch out of FFELP loans into direct loans, which are cheaper for the government. The government subsidizes private- sector lenders under the Federal Family Education Loan Program. After 1. 0 years, when the government starts forgiving public- sector loans, the costs will start to mount, but the budget office hasn't yet calculated the cost beyond 1. Online resources. Text of bill: links. ZUYArticle by Georgetown Professor Philip Schrag: links. ZUZIncome- contingent repayment calculator: links. ZVAIncome- based repayment calculator: links. ZVBPublic Service Loan Forgiveness Under a bill expected to be signed by President Bush, public service workers can have their remaining student- loan balances forgiven after 1. Q: What jobs are eligible? A: A full- time job in emergency management, government, military service, public safety, law enforcement, public health, public education (including early childhood education), social work in a public child or family service agency, public interest law services (including prosecution or public defense or legal advocacy in low- income communities at a nonprofit organization), public child care, public service for individuals with disabilities or the elderly, public library sciences, school- based library sciences and other school- based services, or at a 5. This includes most universities and private schools. Q: What loan payments count toward 1. A: Only payments made after Oct. Q: What loans are eligible? A: Federal direct Stafford (subsidized and unsubsidized) loans, federal direct grad Plus loans, federal direct consolidation loans. Q: What loans are not eligible? A: Private education loans and parent Plus loans are not eligible. Stafford or grad Plus loans granted through the Federal Family Education Loan Program are not eligible unless they are consolidated or reconsolidated into a federal direct loan, which would be eligible. Q: How can I take advantage of the program? A: If you don't already have direct loans, consolidate or reconsolidate your FFELP loans into a direct one. Enter an income- contingent repayment plan. After July 1, 2. 00. Source: Chronicle research.
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