Make us your home page
Instagram

Today’s top headlines delivered to you daily.

(View our Privacy Policy)

Consumer bureau: Too few use loan forgiveness

WASHINGTON — 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, the government's consumer advocate said Wednesday.

Roughly 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.

The largest group of beneficiaries would be those in education — more than 6.8 million people.

"You'll run into some people who think starting their career in a public sector job is a luxury they cannot afford because of their student loan debt," said Peter Buttigieg, the mayor of South Bend, Ind., who has pledged to help his city's employees navigate the programs. "The reality is that crushing student loan debt is making it more difficult for our employees to stay in public service."

Consumer bureau: Too few use loan forgiveness 08/28/13 [Last modified: Wednesday, August 28, 2013 9:55pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Evening update: Tropical Storm Harvey forms in Atlantic, second wave follows

    Hurricanes

    UPDATE: At 8 p.m. the National Hurricane Center said a hurricane hunter plane had determined that Tropical Storm Harvey had formed with sustained winds of 40 mph.

    Three tropical waves are expected to strengthen as they move across the Atlantic Ocean. [Courtesy of the National Hurricane Center]
  2. Trump 'beautiful statues' tweets roil Tampa Bay's own Confederate debate

    National

    It started Thursday at 9:07 a.m., as it does so often these days, with a tweet:

    The Memoria in Aeterna Confederate monument stands in front of the old Hillsborough County Courthouse. Hillsborough County Commissioners voted 4-2 last month to move it to a private cemetery in Brandon before voting again this week to put a deadline on a public sector fundraising campaign to pay part of the cost. [CHRIS URSO   |   Times]
  3. Rays waste repeated opportunities in 5-3 loss to Blue Jays (w/video)

    The Heater

    TORONTO — The signs of frustration were readily apparent as the Rays trudged toward home Thursday after another game littered with squandered opportunities evolved into another wasted day in the wild-card race with a 5-3 loss to the Blue Jays.

    Rays reliever Tommy Hunter reacts as Justin Smoak circles the bases after hitting a go-ahead two-run home run in the eighth.
  4. Spanish PM voices solidarity with Barcelona

    World

    BARCELONA, Spain — Spanish Prime Minister Mariano Rajoy says his country is mourning in solidarity with the city of Barcelona and other cities in Europe that have been hit by deadly extremist attacks.

    An injured person is treated in Barcelona, Spain, Thursday, Aug. 17, 2017 after a white van jumped the sidewalk in the historic Las Ramblas district, crashing into a summer crowd of residents and tourists and injuring several people, police said. [Associated Press]
  5. Confederate statue: Why Bucs, Lightning, Rays took a stand

    Bucs

    They didn't want another Charlottesville.

    Marc Rodriguez, a member of the "Florida Fight for $15" organization, stands in protest along with other activists demanding the Confederate  monument be removed from the old Hillsborough County Courthouse in Tampa. [OCTAVIO JONES   |   Times]