Seduced and Abandoned?

This from Jim Warren at H-L:

Teachers say failing loan forgiveness program

will cost them thousands

Forgiveness program has no more money

Hundreds of Kentucky elementary and high school teachers who were promised that their student loans would be forgiven if they went into critical subject areas such as special education say they're suddenly facing big monthly loan payments because the state forgiveness program is out of cash.

Many say they borrowed heavily for graduate school because they were assured that their loans would be paid off under the federally funded Best In Class program.

Now, they say they're being hit with loan payments ranging from $200 to $400 a month for individuals to more than $800 monthly for couples — amounts for which many haven't budgeted.

"The loan forgiveness played a large role in me deciding to go into this field," said Travis Gay, a special education teacher in the Anderson County Public Schools. "I paid for my entire master's degree out of the program, books and all, and so did my wife."

"We were told, 'It's something you can count on.' But then it was just gone."

Gay says that, without the forgiveness program, he and his wife jointly could face loan payments totaling between $800 and $900 a month until their $90,000 balance
is repaid with interest.According to Gay and other teachers, more than 4,000 Kentucky teachers could be affected...

State student-loan program may stop taking applications

This from Nancy Rodriguez at the Courier-Journal:

May 1 deadline set; more funding sought

The agency that oversees Kentucky's college-loan program says it's unable to secure money for new loans right now -- meaning thousands of students may have to turn to private lenders to pay for their education.

The Kentucky Higher Education Student Loan Corp. blamed ongoing fallout from the global credit crisis as it announced yesterday that it will suspend making college loans to first-time borrowers on May 1, until it can secure additional financing.

The corporation, also known as The Student Loan People, said it will continue to make loans to previous borrowers, based on availability of funds. The corporation uses federal and private funding to provide loans.

"We're hoping things will move and we will be able to come back in 30 days and tell the universities we will be able to make loans we ordinarily would," said Jo Carole Ellis, vice president for government relations and student services at The Kentucky Higher Education Assistance Authority, which acts as guarantor for loans provided by The Student Loan People.

The announcement was particularly bad news at a time when public universities and colleges in Kentucky are preparing to raise tuition for next school year. The Kentucky Council on Postsecondary Education is scheduled to vote on those proposals May 9...