Bill gives Ky. teachers help with college loans

Bill gives Ky. teachers help with college loans
Bill will provide additional money
BY NANCY C. RODRIGUEZ • NRODRIGUEZ@COURIER-JOURNAL.COM • MARCH 29, 2009

Kentucky teachers who were hurt when the state essentially had to halt its loan-forgiveness program for public school educators will receive some additional state money to help defray their debts under a bill signed by Gov. Steve Beshear last week.

The bill, House Bill 480, calls for the Kentucky Higher Education Assistance Authority to use about $1.3 million from the state's $2 million Teacher Scholarship Program to provide additional money to affected teachers in the Best in Class Program.

The money will not pay off the affected teachers' loans, but it is a step in the right direction, said Justin Matson, a math teacher at Jefferson County Virtual Middle School who helped organize a campaign supporting the bill. About 1,000 teachers across the state lobbied for its passage.

"We're happy, but we're still lobbying the federal and state government for additional funding wherever they can find it," Matson said Friday. "We're hoping to chip away at this little by little."

An estimated 5,000 teachers were affected by the change in the program, which was aimed at filling high-need areas such as science, math and special education.

Citing federal cutbacks, officials at the authority announced in January 2008 that it would phase out three college loan forgiveness programs it has been using to attract and keep teachers, nurses and public-service attorneys in Kentucky.

Authority officials said they had to scale back the programs because the federal government isn't providing as large a subsidy to student-loan lenders. Also, fees for guarantors like the authority were increased under the federal College Cost Reduction Act, which then-President George W. Bush signed in September 2007.

The state agency acts as the guarantor for student loans provided by the Kentucky Higher Education Student Loan Corp., also known as The Student Loan People.

Under the changes, students who took out loans after June 30, 2008, are no longer eligible for the forgiveness benefits. Students who took out loans before that deadline are eligible to receive what money is available, which for most amounted to about $900 this past year, according to authority officials.

The bill, which was sponsored by state Rep. Brent Yonts, D-Greenville, does not provide any additional state money for nurses or public service attorneys affected by the changes. It does, however, direct The Student Loan People to work with borrowers to maximize repayment schedules for their loans within the federal limits.

The bill also urges Beshear to encourage the state's congressional delegation to provide federal stimulus money and other federal funds to assist in paying off the loans of eligible participants.

"Education is always one of the governor's highest priorities," Beshear spokesman Jay Blanton said in a statement regarding the bill. "It is very unfortunate that the federal government has changed the law, which funded these benefits. … This pressing need will be considered along with all others as we face the uncertainty of next year's budget in these worsening economic times."

Reporter Nancy Rodriguez can be reached at (502) 582-7079.