Uncle Sam can wipe out some student debt
The government's consumer agency says the programs are there, but teachers, firefighters and other public servants aren't being informed about them.
The Consumer Financial Protection Bureau announced Wednesday that the $1 trillion in student loan debt currently crushing the U.S. workforce, dampening the housing market and making life miserable for millions of recent graduates doesn't have to be this bad.
More than 33 million workers qualify to have their student loans forgiven because they work in schools, hospitals, firehouses, police stations, city halls, the military or other areas of public service.
Unfortunately, according to the government's consumer advocate, too few people take advantage of it because the programs are ridiculously complex, fraught with redundancy and hidden from plain view. The CFPB thinks that's nonsense and has called on Congress to review the loan forgiveness programs. It also wants employers to make sure their workers know they are available.
By forcing recent graduates to choose between paying down their loans and buying a house or a car or taking a lower-paying job that fulfills a public need, the CFPB says U.S. workers are sending millions of dollars to lenders instead of keeping that cash in the local communities. It also actively discourages college graduates from entering public service fields.
"We estimate that one in four working Americans has a job that meets the definition of public service under this program," said Richard Cordray, director of the CFPB. "Many of these teachers, health care workers and other public servants could be eligible to have their college loans wiped out after 10 years."
Even that's a low estimate. Workers at state departments of motor vehicles and even accountants at nonprofit arts groups qualify for the loan forgiveness programs. Their numbers pale compared to the 6.8 million people in education who could receive the benefit. The Education Department says U.S. schools will need 425,000 new teachers by the end of the decade, which is a tough draw when the National Education Association puts the starting salary of a teacher at less than $36,000.
The demand for nurses, police officers and social workers faces similar supply problems thanks to low starting salaries. The government is willing to help them out, but it seems content to just let student loan cash flow to big lenders instead. While streamlining the process would require action from a polarized, painfully slow Congress already embattled in several heated debates over benefits, the alternative of funneling even more cash to already reviled lenders could give aspiring public sector workers the financial reprieve they need.
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Federal government needs to get out of the loaning money business. You would see education cost drop. As long as colleges know taxpayers are footing bill they will never bring down cost.
Same goes for mortgages. Federal government is not suppose to be piggy bank for everyone to borrow from and then don't pay back. Take money out of my pocket and give to losers for college and mortgages they can't pay back. What a ponzi scheme . I thought banks are suppose to be the ones in business of loaning money and taking the risk not the american taxpayer.
World is upside down
Another give away (welfare) program. Everyone wants free stuff. Phones, food, housing, college education. You do realize that someone ultimately pays for all of it.
Reminds me of the MetLife commercial where the cartoon characters want insurance for 5 cents.
The number of people this program applies to is pretty limited and probably not at all the group described above. First off, it has to be a federal loan and you have to make 10 years of on time payments after October 2007 (meaning no loans will be forgiven under the program until 2017). Second, you have to make payments according to one of the allowable repayment programs which are basically the ten year repayment plan, or one of the income contingent repayment plans. Most public positions requiring a degree get very generous salaries so the income contingent payments will still be pretty significant. The likelihood of having a significant balance to be forgiven after 10 years is therefore very low.
But, anyone who works for a not for profit can also qualify as a public employee under the program. So you can get a very low paying job with a not for profit or government agency like the peace corps that doesn't pay much, make 10 years of very low income contingent payments, then get your loans wiped out...
Since the article centers on the fact that it is difficult to find these forgiveness programs in the first place, how come it doesn't have a link or several links to government websites where people can find out if they qualify? This article is no different than the government. It says that there are programs available and then doesn't tell you where to look. It is useless to know this information and complain about the lack of knowing where to find it, and then not tell people where to look. Obviously the media knows where to look and is content with keeping people in the dark. The only other alternative is that they really do not care about people and only did enough investigative work in order to complain about the government. That my friends, is being lazy. If you want to really serve customers then for God's sakes do it! Quit piddling around.
Where is there a shortage of nurses? A few weeks ago my gf went to the ER and what 1 woman used to do 10 years ago now 3 women do. Before she even saw a DR 6 different nurses did something or other for her to be seen. When I was a kid and went to the ER I saw 3 people. The gal that entered the insurance stuff, the nurse that took my BP and temp, and then the Dr.
Now 1 woman enters her insurance info in the computer, 1 has her fill out and sign forms, 1 takes her bp and temp, 1 wheels her around because heaven forbid they walk and fall then get sued, 1 asks her whats going on and puts the info in her file, then 1 was standing around making sure everyone was doing their jobs correctly.
It blows my mind how all other fields because of technological advancements are having less people do more work EXCEPT medical! THey now have more advancements and use more peopel to do the work. Why since the BP and temp are done by machines cant the nurse having her fill out forms do that? Or the nurse asking why did you come in today? Its ridiculous. No wonder medical costs are out of control. These gals all are RNs making over $25 an hour
Never said the entire population gets funding. Some countries realize that a combination of public and corporate support makes for a rising standard of living for all. I am paying off a relatives student loan because I know it will make their life better and all that are near.
Some idiot said: "The government now has complete control over student loans - is there any way this WON'T end badly?"
No, it has been definitively proven that the real problems began when they privatized college education. Hint: those same folk who dominate the banking industry, managed to get billions in free money, and STILL go on their worldwide gambling sprees while WE pay the costs (FDIC and bailouts) in case anything goes "wrong".
Why can't we have free college tuition like some countries do instead of propping up defense industries and being the ugly American ? Think the big banks might have a finger in it ?
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