My two best friends from college are pursuing careers as a public school principal and a public interest lawyer. Both are relying on loan forgiveness programs.
Now these programs, which were supposed to encourage people to enter essential public service occupations, are imperiled by the economy.
Loan forgiveness programs across the country , whether sponsored by states or private organizations, are reneging on millions of dollars in promises and leaving young workers in the lurch. Ron Lieber writes, in an important scoop,
"There are no guarantees that financing for the loan forgiveness programs will survive the next state legislative session (or that the economy will improve enough for them to find other ways of financing the forgiveness). We found this so disturbing that we decided to call up every single entity, state or federal, that we could find that offered loan forgiveness programs. Then, we asked them point-blank if they would like to offer an absolute promise to borrowers or potential borrowers that the loan forgiveness programs would not go away while the borrowers were still using them." The answer, often, was no. You can visit the New York Times website where they are building a database of the fates of various programs nationwide.
There is no way this can stand. It just isn't feasible, long term, to have people incur tens of thousands of dollars in debt to pursue basic middle class jobs.
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It's too bad that governments are reneging on programs like this, but they are pushed to limits right now. California is planning to cut grants for 118,000 college students in the fall (among other things). It is just a matter of money and many states are broke.
Why would an attorney or a principal need loan forgiveness. Why would anyone who incurred educational expenses deserve loan forgiveness for that matter?
I understand as Generation Debt we have much more educational debt than prior generations. But we have the freedom to choose our education and thus our careers. And now that Wall Street is kaput, many formerly unappealing government jobs look quite attractive.
Loan forgiveness program cannot be sustained for long as this will create a huge burden on the lenders and also on the government. If the government has to keep this form of program for many more days, then they have to create a money producing machine which can nullify the deficit. This program will lead our country more into the debt. There can be a solution easy and feasible, it is modifying the loan, with the help lender and government don't have to bear the huge burden of loan forgiveness and the saved money can be used in other development projects too.
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