By Olivia Wynkoop. Bay City News.
In partnership with California Attorney General Rob Bonta, the California Borrowers' Rights Campaign on Monday launched the "California Student Debt Challenge," a statewide informational campaign on student loan forgiveness.
About 1 million Californians in public service are eligible for loan forgiveness, but only 10,000 have received it since 2007, according to state data. Local leaders want to make sure as many residents as possible receive the relief to which they are entitled.
Teachers, firefighters, nonprofit employees, government workers and all those who work in public service are eligible for loan forgiveness after 10 years of employment, thanks to the Federal Public Service Loan Forgiveness program. But it is a largely unknown program, despite its potential to provide tens of thousands of dollars in relief to those who pay their debts.
For a limited time, the federal government is allowing eligible workers to recapture funds from previous missed pay periods, which for some could significantly reduce or completely pay off their loans. But borrowers must apply by Oct. 31 to receive these earlier credits.
"Oct. 31 is the key day to get those credits passed. It's a little less, I understand, than three months to get on track for low or no student debt," California Gov. Gavin Newsom said at Monday's press conference. "California, we're making big changes across the board, not only to promote this program, but also to make college more affordable."
Bonta and a coalition of students, higher education advocates and borrower protection organizations are asking government and nonprofit employers to "take up the challenge" of informing their employees about these benefits and signing application forms, which will be free to them.
"We must make sure that all public sector employees, from teachers to firefighters, nonprofit administrators and state employees, are aware of the public service loan forgiveness waiver period before it closes on October 31, before difficult hurdles are put in place again," Bonta said.
He added that the program began in 2007 as an alternative for residents who turned to private practice instead of public service careers because of heavy loan payments. That promise of relief never came after the Trump administration denied 99 percent of first-round loan cancellation requests, he said.
His office previously sued former U.S. Education Secretary Betsy DeVos and the Trump administration, Congress took action and his team ultimately "won the fight," he said.
"But our battle, of course, continues," she stressed. "The Biden administration has waived key requirements for public servants to erase their federal student loan debt, but here's the rub: it must act, and it must act now. While I have urged the Department of Education to extend the deadline and push for further corrections to the program, this waiver period is currently limited and the deadline is fast approaching."
State Senator Monique Limón hopes to shed light on the growing problem student loans pose to graduates seeking employment. She authored Senate Resolution 96, pending legislation to recognize August as Student Loan Debt Awareness Month. Students should be able to pursue jobs that are meaningful to them, she stressed.
"It is unacceptable that this debt disproportionately affects women and people of color. In an economy where higher education is a prerequisite for many jobs, we cannot allow our dreams to be stifled by debt," Limón said.
Utility employers across the country struggle to add and retain workers in this labor market, and providing student debt relief is one way to keep people in the industry, said Ashley Harrington of the Department of Education's office of federal student aid.
"Advertising this program, talking about the benefits and making sure people know about this program that has a clear path to loan forgiveness is really important. We are committed to making sure that all eligible public servants get the credit they have earned," Harrington explained.
In the Bay Area, residents had nearly $26.6 billion in student debt, according to a 2018 analysis by the San Francisco Treasurer's Office.
San Francisco Treasurer Jose Cisneros said this waiver program provides an essential opportunity to alleviate a huge burden that weighs heavily on many families.
"I urge all eligible employers across our state to take similar steps to share this important opportunity with their employees. With the deadline fast approaching, now is the time for your employees to apply and take advantage of this program," Cisneros said in a statement.
"Please commit to joining California's student debt challenge and let's work together to bring this relief to as many of our employees as possible," he added.
Employers and employees can obtain more information about the debt forgiveness program from studentaid.gov.
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