The federal government has been busy making big changes to students loans, reducing subsidies to lenders to tackle the high cost of the federal student loan program.
But what about graduates who took out loans and went into careers in public service, such at nursing and teaching, with the understanding that their loans would be forgiven in exchange for service? It looks like the recession is causing some states to go back on their promises — Kentucky, Pennsylvania, Iowa and New Hampshire have all made big changes to their loan forgiveness programs.
Travis B. Gay, a special education teacher in Kentucky who is suddenly facing debt he thought would be forgiven, told the New York Times “I remember sitting in the financial aid office and them saying, ‘Pay for every penny of it, pay for your books through loans, because they’re going to be forgiven.’ ” He’s now considering a career in public relations.
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