CNN has some advice for any former students now saddled with excess debt – carry out a decade of social work or join the ranks of the government’s civilian service corps.
CNN business news correspondent Stephanie Elam put on the hard sell for government service to viewers of Newsroom.
“This is really about helping those people out, getting them ready as far as the choice for best course of study for the financial future,” Elam told viewers.
“So you may consider the possibility of enlisting in public service. Demand is really high right now for government jobs …and any remaining debt on federal student loans will be forgiven after you work full-time in public service for ten years.” Elam continued.
“But to get this benefit, you need to take out your loan from a federal lender as opposed to a private one like Sallie Mae,” she continued, apparently auditioning for the role of Obama’s public service czar.
CNN’s national public service broadcast continued as Elam then touted AmeriCorps and the Peace Corp service:
“They’re not going to forgive your loan, but if you do have service that you provide to AmeriCorps, you will enjoy loan forbearance, and what that really means is you won’t be have to make any payments while you’re serving, and AmeriCorps volunteers are also eligible for an education reward for $5,350,” the anchor said.
Elam then added “…four full years of Peace Corps service will equal a 70 percent cancellation of an existing Perkins loan.”
Essentially, if you join up with the government’s civilian service army, you get some of your indentured debt stripped away. However, if you choose to work in the private sector, where real jobs and wealth are created, you get no cushty kick backs and the debt remains. What a way to stimulate the ailing economy.
We have previously highlighted the eagerness that the Obama Administration has displayed in pushing for a comprehensive system of national service.
Last year, in an effort to enhance the role of public service, Democrats introduced The ACTION Act, aimed at increasing awards for AmeriCorps volunteers and reestablishing the Corporation’s connection with federal agencies.
The message is clear – serve the federal government and you will be rewarded, serve the U.S. economy and you will not.