Student Loan Debt Reaches All-Time High

3 years 9 months 1 week ago September 17, 2013 Sep 17, 2013 Tuesday, September 17 2013 Tuesday, September 17, 2013 8:45:00 AM CDT in News
By: Andie Lowenstein, KOMU 8 Reporter
loading

COLUMBIA - Student loan debt has officially topped $1 trillion.

According to the government's consumer advocate, more than 33 million workers qualify to have their student loans forgiven because they work in public service fields. However, too few take advantage because the programs are overly complex and confusing.

Public service work includes, the military, teachers, firefighters, police officers, and those who work in hospitals and city halls.  Some other positions that qualify for loan forgiveness programs include city hall secretaries, state department of motor vehicles office clerks, and accountants at non-profit arts groups - positions that may not usually be seen as public service.

The data shows the largest group of beneficiaries is more than 6.8 million workers in education.

Kristie Harms, an English teacher at Battle High School and a graduate student, wishes she had known about these options sooner.

"I know a lot of teachers who are 10 plus years teaching and they're still paying off student loans, they're not even close," Harms said. "You know they're talking about having to pay mortgages and car payments and have kids...It's kind of scary for me knowing that that's going to be how long it takes."

According to the National Center for Education Statistics, the nation's schools will need 425,000 new teachers by the end of the decade. However, sometimes it takes more than just passion to accept a lower starting salary. Eligibility for a student loan forgiveness program may be a good enough incentive.

"I think the average starting salary in Missouri is about $36,000 for a teacher," MU Financial Director Nick Prewett said. "So depending on how much they've taken out in student loans their payments could be a smaller percentage of that and so they could see some forgiveness on the back end."

All payments after October 1, 2007 are acceptable. To qualify for the student loan forgiveness program, one must make 120 on-time, full and monthly payments on Direct Loans. You must pay under a qualifying repayment plan and must be working full time at an eligible public service organization.

Prewett says since this is a relatively new program, there is no confirmed data yet to show just how beneficial it will actually be.

"At the end of a 10 year period if they don't miss a single payment then the rest of their student loan is going to be forgiven," Prewett said. "That doesn't take effect until October of 2017 so we're not really sure yet how many students are going to achieve that benchmark or what the average forgiveness for those students is."

For more information about the Public Service Loan Forgiveness Program visit: http://studentaid.ed.gov/sites/default/files/public-service-loan-forgiveness.pdf

 

More News

Grid
List
COLUMBIA - As construction continues in the downtown area, workers are finding it difficult to be around. "It's making... More >>
13 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 7:57:00 PM CDT in News
COLUMBIA -The City of Columbia Public Works Department held an informal open house Tuesday, giving people a chance to ask... More >>
13 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 7:38:00 PM CDT in News
BOONE COUNTY - The Boone County Sheriff’s Department is investigating four burglaries this month in the Elm Tree area. Homes... More >>
14 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 7:13:00 PM CDT in News
JEFFERSON CITY (AP) — Th e Missouri Supreme Court says it's constitutional to commit sex offenders to secure confinement after... More >>
15 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 5:23:00 PM CDT in News
BOONE COUNTY - Sheriff's detectives arrested a 20-year-old Jefferson City woman Tuesday in connection with a shooting that wounded two... More >>
16 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 5:04:00 PM CDT in News
JEFFERSON CITY (AP) — Missouri appellate judges are reinstating descriptions of initiative petitions against right to work laws that were... More >>
16 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 4:50:02 PM CDT in News
JEFFERSON CITY - The "21st Century Missouri Transportation System Task Force" will meet for the first time Wednesday afternoon at... More >>
16 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 4:35:00 PM CDT in News
MONETT (AP) — A substitute teacher in southwe st Missouri has been ch arged with having sexual contact with a... More >>
16 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 4:30:41 PM CDT in News
CALLAWAY COUNTY – A proposed port in Jefferson City is one step closer to becoming a reality. The Callaway... More >>
16 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 4:22:00 PM CDT in News
JEFFERSON CITY - NAACP supporters rallied at the state Capitol to ask Missouri Gov. Eric Greitens not to sign the... More >>
17 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 3:58:00 PM CDT in News
COLUMBIA - The Missouri Foundation for Health has awarded $700,000 toward the planning, construction and programming of the planned agriculture... More >>
17 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 3:30:00 PM CDT in News
VERSAILLES (AP) — The Missouri state trooper who had a man die while in his custody pleaded guilty Tuesday to... More >>
18 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 2:41:00 PM CDT in News
JEFFERSON CITY (AP) — Missouri senators won't reconvene until at least after the July 4 holiday to consider legislation on... More >>
19 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 2:08:26 PM CDT in News
CALLAWAY COUNTY — A manhunt for a suspicious person call ended in an arrest just east of Kingdom City. ... More >>
19 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 1:22:00 PM CDT in News
COLUMBIA — Columbia Police officers arrested Joshua Michael McWilliams, 23, of Columbia in reference to Monday night's shots fired call.... More >>
20 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 12:49:00 PM CDT in News
COLUMBIA - Have you heard the news? A total solar eclipse is heading to mid-Missouri! Join KOMU 8 as we... More >>
20 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 12:19:00 PM CDT in Eclipse Science
CAMDENTON — Since the start of 2017, the Camden County Sheriff's office reports more than $45,000 worth of roadway signs... More >>
23 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 9:51:00 AM CDT in News
HOUSTON (AP) — Authorities are searching for a southern Missouri inmate who is accused of overpowering a guard and stealing... More >>
23 hours ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 9:25:05 AM CDT in News
Columbia, MO
Broken Clouds 71°
10am 77°
11am 80°
12pm 83°
1pm 85°

Select a station to view its upcoming schedule:

Coming Up Next

7:00a
Today
11:00a
Rachael Ray
12:00p
KOMU 8 News @ Noon
9:00a
The Steve Wilkos Show
10:00a
Jerry Springer
11:00a
Jerry Springer

Tonight's Schedule

7:00p
Little Big Shots: Forever Young
8:00p
The Carmichael Show
8:30p
The Carmichael Show
9:00p
This Is Us
7:00p
Arrow
8:00p
DC's Legends of Tomorrow
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld