Loan Forgiveness

by KYW's Dr. Marciene Mattleman

Adam and Katie Thomas of Louisville, Kentucky, teachers of special needs kids, had a combined $85,000 debt from student loans. Since the state had a forgiveness program for those in certain fields, they felt protected.
 
However, Kentucky cut its program drastically, forcing them to leave their home and move in with Katie’s parents.

Fields in which there are shortages, such as nurses, teachers, primary care doctors, and social service workers are among the areas for which some states have offered loan forgiveness. Such programs started in the late 60s to keep people from moving or encourage graduates to enter careers where there was need.

However, since financing loan forgiveness depends on state budgets, programs are being sharply cut and even eliminated, although the federal government is trying to assure that loan forgiveness is safe.
 
A recent article in the New York Times suggests that those hoping for loan forgiveness contact their state Departments of Education and ask first what fields are eligible and if funds are guaranteed.
 
Authors of the article provide information at www.nytimes.com/yourmoney.