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4 dead as severe storms hit Houston, TX; Election Protection Program eases access to voting information; surge in solar installations eases energy costs for Missourians; IN makes a splash for Safe Boating Week.

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The Supreme Court rules funding for the Consumer Financial Protection Bureau is okay, election deniers hold key voting oversight positions in swing states, and North Carolina lawmakers vote to ban people from wearing masks in public.

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Americans are buying up rubber ducks ahead of Memorial Day, Nebraskans who want residential solar have a new lifeline, seven community colleges are working to provide students with a better experience, and Mississippi's "Big Muddy" gets restoration help.

Americans are getting billions in student loan debt canceled

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Friday, January 12, 2024   

Public service is its own reward for many -- but as tuition costs soar, it is also an effective tool to reduce college loans.

The Public Service Loan Forgiveness program rewards people who work for the government or a nonprofit. It was created by President George W. Bush in 2007, and has been expanded by the Biden administration.

William Chittenden, associate professor of finance and economics at Texas State University, said what is different now is that many qualify for what's called an "income-driven repayment plan."

"Your student loan payments are going to be based on your disposable income, which will change for family size," Chittenden explained. "The idea is that it will never be more than 5% to 10% of your disposable income."

After working with an eligible employer for 10 years and making 120 qualifying monthly payments on debt, students have the remaining debt forgiven. He pointed out loan forgiveness programs are especially important for those who enter fields not necessarily paying high wages such as teaching, firefighting, nursing and social work.

For many, the cost of higher education has become unmanageable primarily because state legislatures contribute less in their budgets to public education than they used to. It leaves the bulk of financing up to students and parents, who scramble to find private and government help.

Chittenden suggested the entire student loan process could use an overhaul.

"The system's not set up really well," Chittenden contended. "We're asking 18-years olds to make these very important decisions that are going to impact their finances for literally the rest of their lives, without really giving them the tools to be able to do that."

A nearly four-year pause on federal student loan interest ended in 2023 when the pandemic was deemed officially over. President Joe Biden proposed a comprehensive student loan forgiveness program but it was ruled unconstitutional by the U.S. Supreme Court.


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