Century Foundation President's Commentary Explains Why Teachers Deserve a Break on Student Debt
In October 2007, as experts began warning about rising student debt levels, Congress passed a new law to give students a deal: Work in the public sector, for instance as a teacher, and after 10 years of making on-time loan payments, the government will wipe away your debt. The effort was an important step toward curtailing spiraling student loans, but as student debt has continued to skyrocket, the loan program has received little attention—until now.
This month, as the Public Service Loan Forgiveness program turns 10 years old, the first eligible borrowers will receive loan forgiveness, a milestone that comes as the PSLF is under threat like never before. Critics have been circling for a long time, saying it’s too expensive and calling for deep cuts to the program. And President Donald Trump’s first Department of Education budget called for its elimination altogether.
It’s true: The program will cost billions of dollars in the coming years, as more and more borrowers hit the 10-year mark and have their loans forgiven. But that money isn’t wasted. Instead, it encourages young Americans to work in critical public-sector jobs, while reducing their debilitating debt burden.
There is no doubt, however, that the legislation could be improved, especially to keep the program affordable and effective. But curtailing or eliminating it is shortsighted. Instead, we should strengthen the PSLF and ensure it becomes one of Washington’s key strategies for addressing our student debt crisis...