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The Daily OrangeGrassroots groups push for student loan forgiveness
By Victoria Napoli
Posted: 9/29/09, 2:18 AM EST Section: News
Several grassroots organizations are pushing the federal government to eliminate student loan debt. This could potentially help the Syracuse University students burdened with loans.
Approximately 65 percent of Syracuse University students take out federal loans, said Kaye DeVesty, director of the Office of Financial Aid.
The City Council of Albany, NY voted unanimously in favor of a resolution put forward by Jim Sano, a physical education teacher at a public middle school in Albany. It called for the federal government to consider forgiving student loans as part of a stimulus package geared towards young people, according to an article in The New York Times.
Launched in 2005, the Project on Student Debt focuses on research and policy to raise awareness of student loan debt. The organization develops solutions to make student loans less burdensome for those who need them and aims to reduce the number of loans required by college students.
"We don't work with the students directly," said Edie Irons, communications director for the Project on Student Debt. "However, we do work to improve loan repayment and financial aid application policies."
Federal loan forgiveness is linked to professions like government workers, teachers and Peace Corps volunteers. The National Health Service Corporation forgave up to $50,000 for two years of working, Irons said. Other public service employees could get up to 10 years of loan forgiveness. Irons said loan forgiveness has the potential to stimulate the economy more than the American Recovery and Reinvestment Act of 2009.
"Programs are different and they can be very generous," Irons said. "They could help with just a portion of the debt or all of it."
Robert Applebaum, a New York lawyer, created a Facebook group dedicated to the cause. Named "Cancel Student Loan Debt to Stimulate the Economy," the group looks to eliminate all student debt in hopes that such measures will strengthen the economy. He established the group after graduating from law school $80,000 in debt.
Approximately 65 percent of Syracuse University students take out federal loans, said Kaye DeVesty, director of the Office of Financial Aid.
The City Council of Albany, NY voted unanimously in favor of a resolution put forward by Jim Sano, a physical education teacher at a public middle school in Albany. It called for the federal government to consider forgiving student loans as part of a stimulus package geared towards young people, according to an article in The New York Times.
Launched in 2005, the Project on Student Debt focuses on research and policy to raise awareness of student loan debt. The organization develops solutions to make student loans less burdensome for those who need them and aims to reduce the number of loans required by college students.
"We don't work with the students directly," said Edie Irons, communications director for the Project on Student Debt. "However, we do work to improve loan repayment and financial aid application policies."
Federal loan forgiveness is linked to professions like government workers, teachers and Peace Corps volunteers. The National Health Service Corporation forgave up to $50,000 for two years of working, Irons said. Other public service employees could get up to 10 years of loan forgiveness. Irons said loan forgiveness has the potential to stimulate the economy more than the American Recovery and Reinvestment Act of 2009.
"Programs are different and they can be very generous," Irons said. "They could help with just a portion of the debt or all of it."
Robert Applebaum, a New York lawyer, created a Facebook group dedicated to the cause. Named "Cancel Student Loan Debt to Stimulate the Economy," the group looks to eliminate all student debt in hopes that such measures will strengthen the economy. He established the group after graduating from law school $80,000 in debt.
Viewing Comments 1 - 10 of 20
Aru Kiddinme
posted 9/29/09 @ 8:04 AM EST
Pay your loans. There wouldn't be an immediate impact on the economy since the students don't have to pay loans back right away. They can also defer for many reasons if they don't have the income to cover. (Continued…)
Stephanie
posted 9/29/09 @ 10:59 AM EST
Aru is obviously very ignorant on this subject. There are plenty of GRADUATES actively paying back their loans which are thus forcing them to live in poverty. (Continued…)
Deryk Mac Leod
posted 9/29/09 @ 11:40 AM EST
Well the problem is you graduate and dont make enough money, and sure you can get a forbearance but the interest keeps going up and up and up. I had my degree in Commercial Photography and never made "good" money. (Continued…)
HeatherDunbar
posted 9/29/09 @ 12:53 PM EST
The student loan situation is not that simple.
First off, when the US Department of Education calls you, it is probably not ever the US Department of Education any more, but rather an agent of the runaway, wildcat, self/non-regulated private, for profit student loan industry. (Continued…)
HeatherDunbar
posted 9/29/09 @ 1:48 PM EST
Student loans are effectively non-dischargeable in bankruptcy for hardship or any other reason. There is no parity between qualification for veteran's disability or social security disability status and discharge of student loans for disability. (Continued…)
Jonathan
posted 9/29/09 @ 7:35 PM EST
Yes Heather, you are right. A life shipwrecked by Student Loans. I would add that in my case, a youth wasted. A Marriage that ended up in divorce because my ex-wife was terrified that the home would be seized. (Continued…)
Chip
posted 9/29/09 @ 8:02 PM EST
What, don't repay?! Who the heck forced these 'students' to go to college? College is not a right. You don't pay, you don't go. I can't believe these bums expect others to cover their debt. (Continued…)
Colby Scott
posted 9/29/09 @ 11:18 PM EST
Why should low-income students pay up to three times for an education as their wealthier classmates? Yes, student loans are contracts, but borrowers face up to 30% interest rates, etc, after their student loans are sold and re-sold to other financial institutuons, similar to mortgages. (Continued…)
HeatherDunbar
Heather Dunbar
posted 9/30/09 @ 1:54 AM EST
September 17, 2009 The US House of Representatives approved by a 235-171 vote the Student Aid and Fiscal Responsibility Act (H.R. 3221)which is projected to save the taxpayers $87 billion dollars in the next 10 years by cutting out subsidies and other fees paid to the student loan industry giants: http://www. (Continued…)
Jennifer
posted 10/01/09 @ 1:49 PM EST
My old college friend in Chicago told me about this article. This is absurd. Take responsibility and buck up. I took $40K unsubsidized loans for my undergrad and worked my ass off to pay it all off after I graduated. (Continued…)
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