Expanded loan forgiveness plan helps schools

A loan forgiveness program that helps Arizona schools attract math, science and special education teachers should be broadened to help rural and inner-city schools attract teachers with any specialization, a state lawmaker contends.

Just the facts

The Mathematics, Science and Special Education Teacher Student Loan Program, which took effect in 2008, is available to Arizona residents who attend one of state's three public universities. At present, participants must agree to provide instruction in math, science or special education at a public school in Arizona.

It offers loans that defray the costs of in-state tuition, instructional materials and mandatory fees. Recipients must repay the loan by teaching one year for each year of assistance received, plus an additional year. Those who fail to meet the teaching requirement must repay the loan.

Read the news on The East Valley Tribune.

When Student-Loan Refunds Come With a Fee

About 6,300 students at the City Colleges of Chicago have enrolled in a program that puts their student-loan refunds on debit cards, the Chi Town Daily News reported on Tuesday.

The catch is that students must pay a $2 fee each time they use the cards, which are issued by JPMorgan Chase. Talking with a bank teller costs cardholders $10, and checking their account balances costs $1.25, according to the Daily News.

Until recently, students received their refunds via paper checks, but problems with stolen and fraudulent checks prompted the the City Colleges to turn to JPMorgan Chase, the newspaper reported. Students may choose to receive the debit cards or have the money deposited directly into their accounts. —Eric Hoover

via news on Chronicle.

6,300 Students Pay High Fees to Access Student Loan Refunds

A controversial student loan program, in which students from the City Colleges of Chicago receive their federal student loan refunds on a pre-loaded debit card rather than through a traditional check, has already enrolled some 6,300 students despite students being charged high fees for using the card’s basic banking services, reports the Chi Town Daily News (“Controversial Chase Student Loan Program Enrolls 6,300,” Feb. 3, 2009).

The university system began offering the debit card system as an alternative to paper checks after the school system noticed a trend of students’ paper checks being stolen or fraudulently used. Students complained that they were forced to sign up for the debit cards and that the fees associated with the cards were slowly chipping away at their student loan refunds, which students generally rely on to pay for non-education related expenses like rent, groceries, and gas.

Students using the debit cards, offered by J.P. Morgan Chase, must pay for services — $1.25 to check their account balances, $2.00 to use the card for every transaction, and $10.00 to speak with a bank teller — that are typically offered free of charge to other Chase customers.

“With the high fees, having to do the withdrawals and having it cost so much, getting the card is not even worth it,” says Christopher Collier, a student senator at Wright College, one of the university system’s seven campuses.

To avoid paying any Chase banking fees, 1,700 students have opted to have their student loan refunds direct-deposited into their own bank accounts rather than choosing to sign up for the debit cards, but Collier says he still thinks that college administrators should make more of an effort to educate their students about all of their student loan refund options.

Forgiving Student Loan Debt Would Stimulate Economy

The rich get richer, and when they get poorer...well, they get bailed out. That's how it seems lately. As Congress prepares to spend a trillion bucks (in addition to the $700 billion bailout from last fall), it makes one wonder when the working middle class will get some love. The pending American Recovery and Reinvestment Act (H.R.1) will no doubt help our economy in some form, but it's not nearly enough and it's not aimed at all demographics. If we can save the suits, why can't we save the common man, right?

Robert Applebaum, an attorney from New York, thinks so and has an idea on how to help many in his shoes -- and trust me, there are many -- while stimulating the economy at the same time. The 35 year old started up an online campaign this month to bail out those "hard-working, educated middle class" suffocating in college loan debt on Facebook. He formed the group "Cancel Student Loan Debt to Stimulate the Economy" because he believes forgiving student loan debt for those making under $150,000 annually would help boost the economy from "the bottom up."

Read the full article on Huffington Post.

Student Loan Forgiveness for Alaskans

Good news for Alaskans, new legislation involved student loan that will help state residents to pay their loan.

The legislation:

House Bill 56: Graduates who stay in Alaska can get up to half the Alaska Student Loan Corp. loan forgiven. The longer they stay, the more they get forgiven. Sponsored by Reps. Beth Kerttula and Chris Tuck, D-Anchorage.

House Bill 58: Repays a portion of loans for people graduating in education, dentistry, nursing or biology. The longer they stay, the more is repaid. Rural residents get more than urban ones. Sponsored by Reps. Bill Thomas, R-Haines; Peggy Wilson, R-Wrangell; Charisse Millett, R-Anchorage; John Harris, R-Valdez; and Jay Ramras, R-Fairbanks.

According to Rep. Kerttula, D-Juneau, one of several legislators who have introduced bills to fight brain drain from Alaska by paying or forgiving up to half of graduates' Alaska Student Loan Corp. loans – residents will need to pay the loan depending on how long they stay in Alaska.However, the state's last forgiveness program didn't pencil out for the loan corporation, according to Diane Barrans, executive director of the Alaska Commission on Postsecondary Education.

[via Juneau Empire]