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Congressman Tony Cardenas

Representing the 29th District of California

CÁRDENAS HIGHLIGHTS STUDENT LOAN AID

Jun 18, 2014
Press Release
This week, U.S. Rep. Tony Cárdenas (D-San Fernando Valley) sent a letter to Los Angeles Unified School District (LAUSD) Superintendent Dr. John Deasey, asking LAUSD to join in his efforts to fully educate Valley residents on potential student loan repayment savings.

CÁRDENAS HIGHLIGHTS STUDENT LOAN AID

 

(Washington, DC) -- This week, U.S. Rep. Tony Cárdenas (D-San Fernando Valley) sent a letter to Los Angeles Unified School District (LAUSD) Superintendent Dr. John Deasey, asking LAUSD to join in his efforts to fully educate Valley residents on potential student loan repayment savings.

Last week, President Barack Obama announced a series of executive orders that will reduce student loan debt throughout America. More than five million borrowers will be able to elect to “pay as they earn.” Under a new program, student loan repayment costs will be capped at 10 percent of yearly income for eligible borrowers. In California, more than 3,900 residents, representing more than $98 million in debt, can take advantage of the initiative.

Many of these are teachers. In fact, when introducing the program, Obama used a teacher, earning $39,000 a year, as an example. With a student debt of $26,500, the teacher would be able to reduce their payments by more than $1,500 a year.

“Education is a way for Americans to better themselves, to learn and to grow, so they can live the American Dream,” said Cárdenas. “Educating our youth should be an honorable calling, not a path to poverty. Graduating teachers should focus on their classrooms, not their bank accounts. Everyone in the Valley will be able to take advantage of this program, but I hope Superintendent Deasey will work with me specifically reach out to the men and women who work with our children every day, to ease their burdens.”

Cárdenas’ office in Arleta will be available to assist all borrowers, including current students, in taking advantage of increased eligibility for the pay-as-you-earn program.

This program was previously available, but only for a limited number of borrowers, who had recent loans. Now all borrowers will be eligible.

LAUSD employees may also be eligible for the Public Service Loan Forgiveness program, created to remove financial barriers for recent graduates who choose to serve their communities by working in schools, local government, and non-profits. Under this program, borrowers may qualify for forgiveness of the remaining balance of their Direct Loans after making 120 qualifying payments while being employed full time by certain public service employers.

71 percent of Americans graduating with a bachelor’s degree will have debt, averaging more than $29,000. Nationwide, Americans face $1.2 trillion in combined student loan debt.

 

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