Thousands of Kentucky teachers could be on the hook for thousands of dollars in student loans that they were told would be forgiven under a state-based, federally funded loan forgiveness program, reports the Lexington Herald-Leader (“Teachers Say Failing Loan Forgiveness Program Will Cost Them Thousands,” March 2, 2009).
Affected teachers took out student loans for college and graduate school as part of the state’s “Best in Class” program, which offered to forgive the loans of educators who agreed to teach in the state’s hard-to-fill education positions, including math, science, and special education.
Under the program, participating teachers could see up to 20 percent of their student loan payments forgiven for each year they taught in their field — a perk that enticed thousands of teachers to enroll in the program, pursue graduate degrees they might otherwise not have obtained, and in some cases, leave lucrative careers in favor of teaching, the Herald-Leader reports.
But now that the loan forgiveness program has run out of funding — due in part to Congress cutting the program’s subsidies from $16 million to $7 million over the last year — these teachers are scrambling to make their student loan payments, which range from $200 to $400 a month for individuals, to more than $800 for couples.
“The loan forgiveness played a large role in me deciding to go into this field,” said Travis Gay, a special education teacher. “I paid for my entire master’s degree out of the program, books and all, and so did my wife.”
“We were told, ‘It’s something you can count on.’ But then it was just gone,” said Gay. He and his wife owe a total of $90,000 in student loans.
To find debt relief from these loans, Gay and other affected teachers have formed a coalition and are turning to the state for help. The coalition is asking Gov. Steve Beshear to allocate a portion of the state’s $3 billion in economic stimulus funds to the failing loan forgiveness program.
State legislators are also considering a proposal to essentially shift funding from another teacher scholarship program, the Kentucky Teacher Scholarship Program, to the Best in Class program.
Affected teachers took out student loans for college and graduate school as part of the state’s “Best in Class” program, which offered to forgive the loans of educators who agreed to teach in the state’s hard-to-fill education positions, including math, science, and special education.
Under the program, participating teachers could see up to 20 percent of their student loan payments forgiven for each year they taught in their field — a perk that enticed thousands of teachers to enroll in the program, pursue graduate degrees they might otherwise not have obtained, and in some cases, leave lucrative careers in favor of teaching, the Herald-Leader reports.
But now that the loan forgiveness program has run out of funding — due in part to Congress cutting the program’s subsidies from $16 million to $7 million over the last year — these teachers are scrambling to make their student loan payments, which range from $200 to $400 a month for individuals, to more than $800 for couples.
“The loan forgiveness played a large role in me deciding to go into this field,” said Travis Gay, a special education teacher. “I paid for my entire master’s degree out of the program, books and all, and so did my wife.”
“We were told, ‘It’s something you can count on.’ But then it was just gone,” said Gay. He and his wife owe a total of $90,000 in student loans.
To find debt relief from these loans, Gay and other affected teachers have formed a coalition and are turning to the state for help. The coalition is asking Gov. Steve Beshear to allocate a portion of the state’s $3 billion in economic stimulus funds to the failing loan forgiveness program.
State legislators are also considering a proposal to essentially shift funding from another teacher scholarship program, the Kentucky Teacher Scholarship Program, to the Best in Class program.
