Loan Forgiveness Program for Engineering Students

Posted on August 9, 2008  Comments (15)

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):

a Mathematics and Science Honors Scholarship program for students who are earning baccalaureate or advanced degrees in science, mathematics, or engineering and who agree to serve for five consecutive years in a field relevant to such degree; (2) a Mathematics and Science Incentive program under which the Secretary assumes the obligation to pay the interest due on FFELs and DLs by individuals who agree to serve for five consecutive years as highly qualified teachers of science, technology, engineering or mathematics within high need LEAs, or as mathematics, science, or engineering professionals

Related: Science and Engineering Scholarships and FellowshipsCongress Clears Loan Forgiveness Program To Address Engineer ShortageScientists and Engineers in CongressNSF Undergraduate Scholarships in Science, Technology, Engineering, and Math

15 Responses to “Loan Forgiveness Program for Engineering Students”

  1. Chris Gammell
    August 13th, 2008 @ 9:33 am

    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

  2. Julie Lee Amos
    August 18th, 2008 @ 10:07 pm

    That is my question as well, whether the loan forgiveness will be applied to recent graduates. Thank you.

  3. Sharlene Gambel
    October 29th, 2008 @ 9:53 am

    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?

  4. Ann Smith
    November 28th, 2008 @ 8:55 pm

    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)

  5. Julie Lee Amos
    January 20th, 2009 @ 9:35 pm

    Thanks for your response, Ann.

  6. Johanne
    February 20th, 2009 @ 2:03 am

    Loan forgiveness programs provide good financila relief that is very timely given our current economic situation.

  7. sam
    March 16th, 2009 @ 3:52 pm

    how do we find information about applying for the loan forgiveness? i’ve only found info about the act itself.

  8. konrad
    March 18th, 2009 @ 6:07 am

    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.

  9. Jamaal
    April 20th, 2009 @ 5:10 pm

    how do we find information about applying for the loan forgiveness? i’ve only found info about the act itself.

  10. Jamie
    March 5th, 2010 @ 3:52 pm

    Any updates on how to apply?

  11. Carol
    July 28th, 2010 @ 4:51 am

    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?

  12. Bryan
    February 25th, 2011 @ 6:30 pm

    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.

  13. Deb
    May 19th, 2011 @ 12:56 pm

    How do we apply for this forgivness program???? We need help!!

  14. adela
    October 19th, 2011 @ 1:16 pm

    Is this opportunity still available for 2011 engineering graduates? If so how would one apply?

  15. Adam
    November 16th, 2011 @ 5:07 pm

    I am interested in the same question. Is this still available now?

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