USC students see silver lining in Biden administration’s student loan cancellation program – Annenberg Media
The White House has a plan to give some debt relief to students pursuing careers in the public service. Deena Hovsepian hopes this will change her life.
Hovsepian, a dental student at USC, is in debt of $ 500,000. She said she suffered from high levels of anxiety because the mere thought of it took its toll on her mental health.
âI don’t know who would be able to forgive the half a million dollars multiplied by 144 students in my class,â Hovsepian said. “But if it does, so much the better.”
Earlier this month, the Biden administration last Wednesday announced major changes to the federal civil service loan forgiveness program, promising debt relief for teachers, nurses, firefighters, military personnel and d ‘other people who hold public service jobs.
Since many public service workers struggle to pay off student debt, this program is designed to help alleviate this problem.
According to the US Department of Education, the program will help more than half a million public borrowers.
The changes will allow borrowers to account for past payments they have made as intended for payments made under the program, regardless of what type of loan program they have or in which they have consolidated past loans, as long as they worked for a public service employer.
Federal student loan repayments that were halted in March 2020 are expected to resume in February 2022. The primary criteria for this program are those who have worked for a public service job for 10 years or more and have made 120 loan repayments.
The program was designed in 2007 and promulgated by former President George W. Bush to help public servants pay off student loans since the average American public servant earns less than an employee in the for-profit sector.
âI am doing the world a service,â Hovespian said. âAlso, the salary dentists receive in Southern California is not as good as elsewhere. So the ratio between our debt and our income is zero right now. “
Even after years in their profession, many public service employees who have graduated from a highly accredited university like USC struggle to repay their student loans.
âEducation is supposed to be the vehicle that gives you upward socio-economic mobility. But if you’re totally embarrassed it’s like a big anchor pulling you down, âsaid Cathy Creasia, Director of Accreditation and Accreditation at the Rossier School of Education. âYou know, people who are trying to get home loans, they’re a huge albatross. I think it’s imperative that this be dealt with one way or another.
Cresia, who has worked as an educator for over 20 years, said paying off student loans and balancing the high cost of living in California is a daily struggle.
âI would say it’s a matter of fairness that needs to be addressed and quickly,â Creasia said.