33 Million Workers Could Have Student Loans Forgiven
Career College Central summary:
The government's consumer advocate said this week that more than 33 million workers qualify to have their student loans forgiven because they work in schools, hospitals or city halls, but too few take advantage of the options because the programs are overly complicated and often confusing.
About a quarter of the U.S. workforce could take advantage of federal rules that give favorable loan repayment options to those in public service fields, including the military, according to the Consumer Financial Protection Bureau. The agency recommended Congress review the loan forgiveness programs and encouraged employers to make sure their workers know they are available.
Student loan debt has topped $1 trillion, the consumer advocate estimates, and has been a drag on the economy as recent graduates are forced to choose between paying down their loans and buying a house or a car. That sends millions of dollars to lenders instead of keeping that cash in the local communities.
For many graduates, there are multiple programs in place to ease the financial burden of taking lower-paying jobs to help their communities. But the system is overrun with complications and competing options and a firm number of how many graduates could benefit is hard to come by.
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THE ASSOCIATED PRESS