Federal Student Loan Forgiveness
Introduction
Public libraries and schools across the nation are experiencing a dire shortage of librarians, as an alarming number of librarians are reaching the age of retirement. Some facts:
- Libraries employ around 367,000 librarians and other professionals, paraprofessionals, clerical and technical personnel nationwide and technical personnel nationwide.
- More than 3 in 5 librarians are age 45 or older and will become eligible for retirement in the next 10 years.
- Approximately 25 percent of America’s school libraries do not have a state certified school library media specialist on staff.
In light of this, the ALA Washington Office has worked to increase opportunities for students to attend library school and and to increase diversity in the profession. One of the ways we have done this is to push for loan forgiveness for librarians.
Recently, Congress passed legislation providing federal student loan forgiveness for librarians. The following information explains the loan forgiveness provisions enacted by the legislation and where further details about loan forgiveness programs for librarians can be found.
Additional information concerning student eligibility in obtaining
federal loans can be found in the Department of Education’s Guide to Federal Student Aid.
Higher Education Opportunity Act of 2008
Perkins Loans Forgiveness
The Higher Education Opportunity Act (HEOA), passed in August 2008, extends current law Perkins loan forgiveness to additional categories of borrowers who meet eligibility criteria and work as librarians, prekindergarten or child care workers, full-time faculty at tribal colleges or universities, and speech and language therapists. Specifically, the language includes service as a librarian with a master's degree working in:
- An elementary or secondary school eligible for assistance under title I of the Elementary and Secondary Education Act; or
- A public library serving an area containing an elementary or secondary school eligible for assistance under title I of the Elementary and Secondary Education Act.
On October 28, the Department of Education released the final regulation [insert rule] for the revised Perkins loan forgiveness program. The regulation states that changes in the program will go into effect on July 1, 2010. Further information about the program, such as eligibility requirements and terms, will be posted on the Department’s website for Federal Perkins Loan Teacher Cancellation.
Areas of National Need
HEAO also authorizes a discretionary loan forgiveness (excluding consolidation and PLUS loans) of $2,000 a year (up to $10,000) for service in “areas of national need.” Under this program, librarians are specifically listed as an “area of national need” as long as the individual is employed full-time in a high poverty area for five consecutive years. Specifically, the individual must work in:
- A public library that serves a geographic area within which the public schools have a combined average of 30 percent or more of their total student enrollments composed of children eligible for assistance under title I of the Elementary and Secondary Education Act; or
- An elementary or secondary school with greater than 30 percent of its students eligible for assistance under title I of the Elementary and Secondary Education Act.
In December 2008, the Department of Education explained in a letter [insert letter] to parties affected by HEAO that the law “authorizes numerous new programs.” However, these “new programs cannot be implemented until funding is provided” by Congress. For this reason, the Department has not yet developed regulations for loan forgiveness for service in areas of national need. More information on this program will be provided as details become available.
Public Service Loan Forgiveness Program
The Higher Education Opportunity Act also authorized a new Public Service Loan Forgiveness Program that includes librarians as eligible participants. The Act contained a new Public Service Loan Forgiveness Program that includes librarians as eligible participants. The Education Department’s Federal Student Aid Office has created a factsheet (pdf) that summarizes the terms and conditions of the program, including eligibility requirements.. Please visit the Public Service Loan Forgiveness section of the Federal Student Aid Office’s website or call 1-800-433-3243 for additional information.
Under the program, the Secretary of Education shall forgive the following:
- The remaining loan balance for a borrower who has been employed in a public sector job and making payments on such loans for a period of 10 years (which need not be consecutive);
- Such borrowers shall be eligible to have one tenth of the remaining loan balance forgiven for each of the 10 years in which the borrowers have made payments.
You qualify to benefit from the College Cost Reduction Act if you meet the following criteria:
|
You
are currently employed as a librarian with an undergraduate or masters
degree and you obtained a Direct Loan* during your studies. |
And |
You have been employed as a librarian for 10 years or more and have made consistent payments on your loan. |
* Direct Loans are Direct Stafford loans (Subsidized or Unsubsidized), Direct PLUS loans, and Direct Consolidation loans.
Consolidation of loans may lead to disqualification from any of the
above programs. Check with your borrower before deciding upon
consolidation plans.