From the Fiscal Times, federal legislation has been introduced making it more feasible for students to pursue low paying fields, like teaching.
New federal legislation is making it easier for those in lower-paying jobs to pay off their school debt, says Edie Irons, communications director for the Institute for College Access and Success, Oakland, Calif. Income-based repayment, which became available in 2009, allows those with federal student loans to cap monthly payments at a percentage of discretionary income. After 25 years, any outstanding debt is forgiven.
For those who choose public service jobs like school guidance counselor or public defender or non-profit health care, a separate program offers federal loan forgiveness after only 10-years. “This is a very important program for the people who qualify for it, especially if they have gone to graduate school and taken on a lot of debt to become a social worker or a teacher,” Irons says.
Aware that debt worries are keeping some students away from lower-paying professions, Scripps College in Claremont, Calif. has taken steps to limit loan amounts in its financial aid packages. It has put an annual $3,500 cap on lending, limiting students to $14,000 over their undergraduate careers. “We were concerned that students were mortgaging their futures to get college degrees, and we didn’t want that to happen,” says David Levy, director of financial aid. “We wanted students to be able to follow their passions.”
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