“Student loan forgiveness and service payback programs provide financial incentives in exchange for a specific work commitment. Student Loan forgiveness programs repay a percentage of an employee’s student loan after service commences; service payback programs cover a portion of a student’s school costs in return for anagreement to work in a specific job for a specified period of time in the future.

These programs have one or more of the following four goals: to provide financial assistance to students to help them with the costs of college, to entice individuals to choose a particular occupation or field of specialization, to entice individuals to work for a period of time in a certain job or underserved region, or to entice individuals to remain in a high need occupation, region or underserved facility. Several bills thatwould expand existing student loan forgiveness or service payback programs or extend them to additional occupational groups have already been introduced in the 109th Congress and over 40 bills were introduced in the 108th Congress.”

Tags: debt / federal student loans / student loan alternatives

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