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President Trump proposes to end public service loan forgiveness program; Locals react

For the fourth year in a row, the President is proposing eliminating a student loan program designated for workers in the public sector. How does this impact students in Chico?

Posted: Feb 14, 2020 8:50 AM
Updated: Feb 14, 2020 10:08 AM

CHICO, Calif. - For the fourth year in a row, the President is proposing eliminating a student loan program designated for workers in the public sector. How does this impact students in Chico?

Action News Now reached out to the Chico State Financial Aid Office to find out.

The program is called the "Public Service Loan Forgiveness Program," people have to be employed as a teacher, nurse or any public sector job.

They would make 10 years of payments and cancel the remaining balance after that.

Associate Director for the Chico State Financial Aid & Scholarship Office, Kentiner David said he has helped past students apply for the program since it was signed into law in 2007 by President George W. Bush. It's an incentive to stay in lower-paying public sector jobs.

"This program was created to help them. They do have the skills but if they have a huge loan balance, they may go on to corporate law if you're a lawyer, rather than coming with your knowledge and helping the communities who don't have the money to pay for their services, but they sorely need that service," David said.

In response, Action News Now reached out to the Chico State Republican's Club. Below is the clubs full statement.

"Student debt forgiveness programs do little to fix the issues associated with the cost of higher education. All these programs do is pass the cost onto the taxpayer. In order to properly manage our government, we must cut wasteful programs that do not act as they are designed."

On average, students at Chico State take out a $19,000 loan, according to David.

The program doesn't come without problems, Congress didn't make all federal loans eligible and some borrowers found out they didn't qualify after paying off the loan for numerous years.

There has been no indication from Congress to cut the program.

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