I am supporting the proposal to change the timeframe of the Public Service Loan Forgiveness Program to 60 payments versus the current 120 payments. Our economy can use more students who are out of debt sooner and working in public service.
Why is this important?
In order to qualify for the Public Service Loan Forgiveness Program, one must make 120 on-time, full, scheduled, monthly payments on your Direct Loans. Only payments made after October 1, 2007, qualify. You must also must be working full-time at a qualifying public service organization.
Well considering the state of our economy and the fact that many of us with outstanding student loans will not be affected by the proposed changes made by President Obama, why not cut this time in half by say 60 payments? This can help our economy recover quicker and give students the incentive to move into the public service sector.
