Tuesday, September 11, 2007

U.S. Congress and Senate Work Together Passing Fed College Debt Forgiveness for Non Profit Employees!!

The recent American non profit sector's hiring whoas are about to be lessened.

If President Bush signs H.R. 2699 into law, an American who works for a non profit for ten years or more, after college, and has federal education loans will receive federal education loan debt forgiveness. This would be in effect for those with federal education loans dated October 1, 2007, and after. [Correction: Anyone who has paid 120 times, after October 1, 2007; towards their federal education loan is eligible, under this law. There is no requirement that the loan be dated 10/1/07 or after.].

In a move to reduce federal education lending costs, on September 7th, the United States Congress voted for H.R. 2699 College Cost Reduction Act of 2007.

Representative George Miller (D-California) proposed an original draft of the bill approximately a year ago. Since then the House and the Senate each proposed separate versions of the bill. President Bush has not yet signed the bill but Representative Miller said on C-SPAN's coverage of the U.S. House on the September 7, 2007th "Capital News" segment, that it has been indicated to him that President does intend to sign the bill into law. YouTube footage here

It passed in the Senate 79 to 12 in bipartisanship on September 7th.

The bill was created by Representative Miller to reduce federal subsidies payments to non federal loan programs, and instead move that federal money into the Pell Grants (federal) education loan program. Students who qualify for and receive Pell Grants are considered some of the more needy students in the United States. Federal money that would have otherwise been paid as subsidies to education loan businesses (private and non profit) will now be allocated (as of the 2008 United States Federal Budget) to Pell Grant recipients in increments of $350, and then $100 every year, after; reducing the Pell Grant program's cost.

Federal education debt forgiveness will be offered to those who provide public service work for ten years or more, and those serving in the United States Armed Forces.

In "Congress Passes Bill to Forgive Student-Loan Debt for Some Charity Workers" Suzanne Perry wrote for The Chronicle of Philanthropy that......"“Public service” is defined to include employees of nonprofit legal-advocacy groups and organizations recognized by the Internal Revenue Service as tax-exempt charities. It also covers government employees, public-school teachers, law-enforcement officials, and public-health workers.

..."The Nonprofit Sector Workforce Coalition — composed of more than 50 nonprofit groups, foundations, associations, and academic centers — argued that the provision would help attract workers to relatively low-paid nonprofit careers.

..."The loan-forgiveness program would be available to former students who participate in specific repayment plans outlined in the bill that take income into account. It would apply only to loans made directly by the federal government, although borrowers could re-consolidate other loans into federal direct loans to qualify for the benefit. The plan would apply only to loan payments made after October 1, 2007. " [September 10, 2007; News Updates email]

Needless to say, this is a progressive potential hiring recruitment tool for the non profit sector! The proposed bill indicates that Americans who work in the non profit sector are also serving their nation at the highest level like those who sign up for the Armed Forces and are offered Federal education debt forgiveness, to be recruited.

Sign that bill, President Bush!


Christine Newkirk said...

Thanks for the information--I just linked to your post from my site.

Arlene M. Spencer said...

I'm glad to help and thank you!