Peace Corps Volunteers may receive relief for Perkins loans
Read and comment on this story from The Huntsville Item that says that the federal government has made some recent changes regarding financial aid for those enrolled in higher education programs. Those involved in the Peace Corps or Vista volunteer programs might be eligible to achieve relief for their Perkins loans. Volunteers from these agencies can have up to 70 percent of their loans forgiven. Read the story at:
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Financial aid program expanded
By Twila Leverton/Staff Writer
The federal government has made some recent changes regarding financial aid for those enrolled in higher education programs. Experts say the new rule changes might be beneficial for local students.
The student loan forgiveness program, approved by Congress, will allow the federal government to cancel all or part of an educational loan. Professionals in the nursing, teaching and child care industries might be available for assistance from their Perkins or Stafford loans. There might also be loan forgiveness for those who perform volunteer work, military service, teach, practice medicine in certain types of communities or meet other criteria specified by the forgiveness program.
The new program was introduced in order to provide an incentive for students to go into high-need areas like nursing and teaching, said Kristin Boyer, senior communications specialist for Texas Guaranteed.
"It also helps to retain them and help them to stay into the professions longer," she said.
Being qualified for the program depends on several eligibility factors, Boyer said. One of the most popular parts of the program involves teaching. Those participants can have up to $5,000 of their Stafford loans canceled out.
"Teachers might be eligible for the program if they teach for five years in a low-income school, " Boyer said.
Those involved in the military service might serve for two to six years in order to have relief from their loans, she said. It varies from agency to agency as to how much of the loan will be relieved.
In some cases, child care providers can have their entire loans forgiven after five years of service. It is also possible to ask for a deference, Boyer said.
"You can wait until after your five years of service to start paying back your loans," she said.
Those involved in the Peace Corps or Vista volunteer programs might be eligible to achieve relief for their Perkins loans. Volunteers from these agencies can have up to 70 percent of their loans forgiven, Boyer said.
"The first two years, they can have 15 percent of their original loan amount forgiven and years three and four will cover 20 percent of the principle loan amount," she said.
When searching for a job, it might be necessary to ask companies if they offer loan repayment assistance, Boyer said.
"Some agencies offer it as a benefit. It's different from a federal program," she said.
The child care and teacher loan assistance programs went into affect in 2001. Texas Guaranteed has processed more than 56 Stafford Teacher Loan Forgiveness applications since the program went into effect. Since July 2001, borrowers have received relief from more than $260,000 in loans, Boyer said.
"Over the next few years, we will see the numbers increase," she said.
More information about the loan forgiveness program can be attained in a public service Web site on Dec. 10, beginning at 2 p.m. The one hour event will feature financial aid experts from across the United States. Experts will discuss how a student can be forgiven, canceled or discharged. Those interested can join the chat by visiting the Web site at www.mapping-your-future.org.
Other financial aid regulation changes have been made recently. One change is the elimination of the 12-hour rule that restricts financial aid for students enrolled in distance learning and other non-traditional term programs. The Web-based Education Commission decided that the regulations discourage innovation.
"They might have the unintended effect of curtailing educational opportunity among thousands who seek financial aid for college," officials said in a U.S. Department of Education press release.
U.S. Education Secretary Rod Paige said the change would help colleges better serve students in these programs, which might include working adults financing their education.
"These changes will help schools better serve needy students," he said. "We owe a great deal to the dedicated individuals throughout higher education who helped craft them."
Students at Sam Houston State University will be somewhat affected by the new 12-hour rule change, said Patricia Mabry, director of financial aid. The new change will affect those students participating in web-based courses only, she said.
"It is a great advantage for the non-traditional schools and will benefit the traditional schools as they find more and more innovative methods to offer classes," Mabry said.
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