[swkcommunity] FW: Loan Forgiveness for Social Workers update

Sat Sep 29 14:01:46 CDT 2007

FYI!!

Brenda

Dr. Brenda Moore, Dept. Head

Department of Social Work

P.O.Box 3011

Commerce, Texas  75429

903.886.5398

  _____  

From: Vicki Hansen [mailto:vhansen at naswtx.org] 
Sent: Thursday, September 27, 2007 8:11 AM
To: Dennis Haynes
Subject: Loan Forgiveness for Social Workers update - would this be
appropriate for the listserv?

September 21, 2007

Victory for the Social Work Reinvestment Initiative:  Loan Forgiveness for
Social Workers in the College Cost Reduction Act of 2007!

NASW has been working to secure student loan forgiveness legislation for
social workers for many years. Thanks to grassroots member advocacy and the
work of NASW lobbyists, a major victory has been scored in support for
students and social workers nationwide: On September 7,   2007, Congress
passed H.R. 2669, "The College Cost Reduction Act of 2007" which amounts to
the most sweeping changes to federal student aid programs in more than a
decade. The President is expected to sign it shortly. Most of the changes
will take effect on October 1, 2007.  Here are some the specifics of the
bill:

*	Loan forgiveness would be offered to those who hold public service
jobs (including social workers in a public child or family service agency)
after 10 years of service.    
*	The interest rate on subsidized student loans would be cut in half,
from 6.8 percent to 3.4 percent, over four years beginning in 2008. 
*	The maximum Pell grant award would increase by $490 in 2008 to
$1,090 by 2012-2013. 
*	A cap on repayments of federally backed loans at 15 percent of  a
borrower's discretionary income. 

The portion of this legislation that is most pertinent to social workers is
the section on loan forgiveness.  Currently, under the U.S. Department of
Education's Income Contingent Repayment (ICR) Program, a borrower may pay
federally guaranteed and federally extended loans over 25 years. The
repayment amount is tied to the borrower's income and after 25 years of ICR
payments, the balance of the debt is forgiven. You can access the U.S.
Department of Education's website at www.ed.gov <http://www.ed.gov/>  for
more information.

With respect to H.R. 2669, ICR is retained but there is also the option to
shorten the period for loan forgiveness to occur. A new program will allow
public service workers to cancel their loans after ten years of service for
loans taken out after October 1, 2007. A public service job is defined as:
emergency management, government, military service, public safety, law
enforcement, public health, public education (including early childhood
education), social work in a public child or family service agency, public
interest law services (including prosecution of public defense or legal
advocacy in low-income communities at a nonprofit organization), public
child care, public service for individuals with disabilities, public service
for the elderly, public library sciences, school based library sciences, and
"other school-based services" or at an organization with 501 (c)(3) Internal
Revenue Service status, which would be the nonprofit sector. This
legislation could impact many social workers when one considers the broad
categories of government and the nonprofit sector.

However, the law is ambiguous in places. For example, it is not clear
whether a public service job could be done by someone who works in a private
nonprofit organization that provides child welfare services under contract
to the government or what is meant by "other school-based services". Loan
forgiveness is also mentioned for those who teach full-time as a faculty
member at a tribal college or university and "other faculty teaching in
high-need areas" to be determined by the Secretary of Education. Therefore,
social workers that provide full-time public service in the aforementioned
areas could benefit from this legislation as it is written. The U.S.
Department of Education will be issuing regulations in the coming months
that give more details about eligibility determination and other
programmatic concerns. 

While we were disappointed that a provision for loan forgiveness after five
years was removed from an earlier House version, we recognize that loan
forgiveness is an important workforce recruitment and retention tool. Those
who take advantage of loan forgiveness programs are likely to remain in
their social work careers longer resulting in better outcomes for consumers.
Social workers are burdened with high student loans and often receive lower
pay than other professions. A recent survey by the Council on Social Work
Education found that the average loan debt of social work students
graduating in 2004 with a master's degree in social work was $26,777; those
with bachelor's degrees in social work faced repayment of $18,609 in loans
and those with doctoral degrees in social work were $32,841 in debt. 

For more information

Please contact the U.S. Department of Education at 1-800-USA-LEARN for more
information or to find out if you are eligible for loan forgiveness. This
legislation presents a significant opportunity for social workers to improve
their economic situations as we work to enhance the lives of children and
families nationwide. NASW will continue to advocate for legislation to
support the social work profession and the children and families you serve.
Our loan forgiveness toolkit can be accessed at
http://www.socialworkers.org/advocacy/updates/2007/072707.asp
<http://www.socialworkers.org/advocacy/updates/2007/072707.asp>  or view our
"Frequently Asked Questions" on our website at www.socialworkers.org
<http://www.socialworkers.org/> 

Suite 700, 750 First Street, Washington, DC 20002-4241
202-408-8600 * www.socialworkers.org/advocacy
<http://www.socialworkers.org/advocacy/> 

Vicki Hansen, LMSW-AP, ACSW

Executive Director

National Association of Social Workers, Texas Chapter

810 W. 11th St.

Austin, TX 78701-2010

voice:  512-474-1454

fax:  512-474-1317

vhansen at naswtx.org <mailto:vhansen at naswtx.org> 

cell:  512-217-3336

www.naswtx.org <http://www.naswtx.org> 

NASW/Texas Conference, October 18-20, 2007 in San Antonio - visit
www.naswtx.org for more information.

Membership dues support the work that we do.  Thank you!  If you are not yet
a member of NASW, we welcome you to discover the benefits of NASW membership
at: https://www.socialworkers.org/nasw/join/default.asp
<blocked::https://www.socialworkers.org/nasw/join/default.asp> 

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