Total U.S. student loan debt has risen to epic levels in the past year, and with new graduates facing a very tough job market, it is getting harder to attract Americans into lower-paying public service positions. The Consumer Finance Protection Bureau hopes to change that.


By advertising the federal Public Service Loan Forgiveness program, the CFPB hopes to win more workers to jobs that directly serve their communities.


“People give up higher incomes to serve their city, their state, or their country,” CFPB Director Richard Cordray said in a call with reporters Wednesday. “We believe that people who contribute part of their talents, part of the benefits of their education, to society as a whole should not be mired in debt because they stir themselves to the calling of public service.”


The CFPB says that not enough people know about the government loan forgiveness program. It will erase remaining debt on certain federal loans after 10-years of timely payments. And the definition of “public servants” is much more inclusive than people think, as well. It is not just police officers and teachers, but also members of the armed forces, social workers, all emergency services employees, all government employees and those working at 501(c)(3) non-profit companies. The CFPB estimates that 33 million Americans currently fit into those categories.


Loan forgiveness may be just the added incentive many college students need to choose a career in teaching or nursing, areas where major shortfalls are predicted within the next ten years. The CFPB plans to work more closely with employers to help them spread the word to potential public servants. Those seeking more information can visit ConsumerFinance.gov/pledge.

About Amber Nelson
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.

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