Bush actually did something good today.
On July 31, Congress passed the Higher Education Reauthorization and Opportunity Act, (HEA) which will significantly expand student aid for thousands of students pursuing higher education. The vote on the five-year reauthorization was overwhelmingly bipartisan, 380 to 49 in the House and 83 to 8 in the Senate. The President signed H. R. 4137 it into law on August 14, which includes loan forgiveness for social workers, mental health professionals, and school counselors, among other professions. In addition, it increases the maximum Pell Grant amounts from $4,800 to $6,000 in 2009 and up to $8,000 in 2014. Further, it requires the Education Department to publish data about college costs; requires universities with the highest tuition increases to submit reports to the agency explaining them, requires universities to publish textbooks costs in online catalogues so that students know the true cost of a course; and simplifies the onerous financial aid forms by cutting an eight page form with 108 questions to a two page form with 44 questions.
With respect to the loan forgiveness provisions, the law encourages students to enter public service jobs by authorizing up to $10,000 in loan forgiveness for child welfare workers, public defenders, prosecutors, firefighters, military service members, first responders, law enforcement officers, educators (including those who focus on early childhood), nurses, and others serving the public interest. Eligible borrowers must be employed full time in an area of national need and not in default on the loan for which they seek forgiveness. Child welfare workers who have a degree in social work or a related field with a focus on serving children and families and who are employed full time in public or private child welfare services are eligible as well as mental health professionals with a Master’s degree in social work, psychology, or psychiatry, who service children, adolescents, or veterans. For each year of full time employment in an area of national need that a borrower completes on or after the law is enacted, $2,000 of the student loan obligation will be forgiven for up to five years. Therefore, the maximum a borrower could receive is $10,000. The loan forgiveness provisions will be effective on or after the date of HEA’s enactment and will be available on a first come, first served basis and subject to appropriations. To find out if you qualify for the loan forgiveness provisions, go to http://www.federalstudentaid.ed.gov/. You will need to have federal student loans as private loans are not eligible for loan forgiveness. The Secretary of Education will have to work out many of the implementation details such as the definition of “national need” and whether or not previous years work will count toward the loan forgiveness.
With respect to the loan forgiveness provisions, the law encourages students to enter public service jobs by authorizing up to $10,000 in loan forgiveness for child welfare workers, public defenders, prosecutors, firefighters, military service members, first responders, law enforcement officers, educators (including those who focus on early childhood), nurses, and others serving the public interest. Eligible borrowers must be employed full time in an area of national need and not in default on the loan for which they seek forgiveness. Child welfare workers who have a degree in social work or a related field with a focus on serving children and families and who are employed full time in public or private child welfare services are eligible as well as mental health professionals with a Master’s degree in social work, psychology, or psychiatry, who service children, adolescents, or veterans. For each year of full time employment in an area of national need that a borrower completes on or after the law is enacted, $2,000 of the student loan obligation will be forgiven for up to five years. Therefore, the maximum a borrower could receive is $10,000. The loan forgiveness provisions will be effective on or after the date of HEA’s enactment and will be available on a first come, first served basis and subject to appropriations. To find out if you qualify for the loan forgiveness provisions, go to http://www.federalstudentaid.ed.gov/. You will need to have federal student loans as private loans are not eligible for loan forgiveness. The Secretary of Education will have to work out many of the implementation details such as the definition of “national need” and whether or not previous years work will count toward the loan forgiveness.