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Transcript: Tuition help for public servants

Anchor Intro: Thinking about helping others while you help yourself? Then you should know about a law passed in 2007 that helps college students heading for a career in public service. Bankrate.com explains.

Voice over 1: Tavian Jones is like lots of public servants. While he appreciates the pay, it's not his prime motivation.

SOT: "I feel like I was put on this Earth for a purpose, into service for a purpose. I feel like my purpose is to help people, so that's what I want to do."

Voice over 2: And one thing Congress wanted to do is help people like Tavian. The College Cost Reduction Act, passed in 2007, promises to forgive the first $5,000 of student loan debt to those who choose certain public service jobs after college -- and to forgive the rest after 10 years of timely payments.

Voice over 3: It also offers tuition assistance to future teachers, providing they agree to teach high-need subject or in high-poverty areas.

Voice over 4: Other provisions of the law increased Pell Grants and reduced the interest rate on need-based loans.

Voice over 5: All told, it was an $18 billion aid package. And here's something worthy of study: None of this aid comes from taxpayer pockets.

Voice over 6: Where does it come from? From student loan lenders, because the law reduces federal subsidies on student loans by nearly $20 billion. When the law passed, critics said it would leave the industry in disarray. So far, however, so good.

Standup: So if you're heading for a career in public service, you might want to study the College Cost Reduction Act. Because helping others is good, and so is having Uncle Sam pay off your debts. For Bankrate.com, I'm Kristin Arnold.

Bankrate.com's corrections policy
-- Posted: Dec. 31, 2008
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