Update (2011): sadly politicians decided though they can give billions in welfare to investment banks and billions in tax breaks to those giving politicians lots of cash they didn’t want to help out engineering students. I actually wouldn’t have a big problem with this decision (to not fund this program) if it was symptomatic of frugal actions by those we entrust with leading our government. Given how frivolously they reward those that give them lots of cash for their campaigns (or pay as soon as they and their staff take jobs with organizations they gave huge benefits to) I think not funding this very small cost is foolish. This is the type of program I think smart countries will adopt (the types of policies the SUA adopted in the 1960’s and lately countries like Singapore, Korea, China have been adopting to encourage science and engineering leadership for the next generation).
Engineering students would receive up to $10,000 in student loan forgiveness under legislation just passed by Congress that the president is expected to sign. The Higher Education Reauthorization and College Opportunity Act of 2008 creates a new program to provide financial incentives for professions in areas of national need including engineering.
Engineering students would qualify for up to $10,000 in credit against their outstanding student loan obligation following graduation and entry into the engineering, technology, applied sciences, or mathematics (and other areas too) workforce. The program authorizes up to $2,000 per year of schooling.
The legislation also includes the Robert C. Byrd American Competitiveness program (an adjustment to the existing program):
Related: Science and Engineering Scholarships and Fellowships – Congress Clears Loan Forgiveness Program To Address Engineer Shortage – Scientists and Engineers in Congress – NSF Undergraduate Scholarships in Science, Technology, Engineering, and Math
Hi John,
Do you know if this will be applied retroactively to recent graduates? My bank account would thank you for any answer you could give 🙂
~Chris Gammell
That is my question as well, whether the loan forgiveness will be applied to recent graduates. Thank you.
I have two grandsons (twins) that graduated in engineering, one in computer engineering and the other in aerospace/aeronautical engineering. My question is who qualifies for this loan forgiveness. They each have a fairly large college loan to repay. This would be a very big help to them. How do we find more info on this?
It looks like it’s not retroactive:
‘(1) IN GENERAL- Subject to paragraph (2), for each school, academic, or calendar year of full-time employment in an area of national need described in subsection (b) ***that a borrower completes on or after the date of enactment*** of the Higher Education Opportunity Act, the Secretary shall forgive not more than $2,000 of the student loan obligation of the borrower that is outstanding after the completion of each such school, academic, or calendar year of employment, respectively.’ (emphasis added)
Thanks for your response, Ann.
Loan forgiveness programs provide good financila relief that is very timely given our current economic situation.
how do we find information about applying for the loan forgiveness? i’ve only found info about the act itself.
sam, I have been trying to figure that out. My school is giving the the run around….. don’t respond to any e-mail I sent or anything.
how do we find information about applying for the loan forgiveness? i’ve only found info about the act itself.
Any updates on how to apply?
I am looking for information for student loan forgiveness for my son who is a computer engineer and still owes 52,000 in student loans. Are any loan forgiveness programs availaable for those in repayment?
This is great to see in our country. So many times we see college graduates that have trouble paying their loans. This doesn’t only affect the student and the financial institutions, but also the job market and economy. More things like this need to happen to people who want to better themselves.
How do we apply for this forgivness program???? We need help!!
Is this opportunity still available for 2011 engineering graduates? If so how would one apply?
I am interested in the same question. Is this still available now?
Curious Cat, could you provide some new information on this? It’s been some time since and maybe they’ve reconsidered by now.