Loan Forgiveness
For Social Workers
June 9, 2004 Financing
a higher education is becoming increasing difficult for many
students and social work students are no exception. The majority
of social work students must piece together a financial package
from a variety of resources (i.e. scholarships, grants, loans,
parental support), but far too often, the majority of the financial
support comes from college loans.
Even greater financial difficulty awaits social workers following
graduation. Some social workers finish their education with
bachelor's degrees in social work (BSW), but the vast majority
go on to complete master's degrees (MSW). Of course, some continue
to pursue doctoral degrees (DSW/PhD). After four, five, six,
or more years of education, social workers are offered positions
in both the public and private sectors that often fail to adequately
reward them for their educational attainment, professional
licenses, and credentials.
Social work salaries continue to be among the lowest for professionals
in general and for those with master's level educations in
particular. In 2001, 22 percent of social workers earned under
$30,000; 20 percent earned between $30,000 and $39,999; 18
percent earned between $40,000 and $49,999. The median salary
for social workers with two to four years' experience was $35,600.
While social workers may be in positions that are personally
fulfilling, due to their high loan debt and low income, many
struggle financially and are forced to forego middle class
aspirations, such as home ownership. For many of these dedicated
professionals the financial burden becomes unmanageable and
they are forced to leave positions that may be in desperate
need of their skills and knowledge for positions that are more
financially rewarding. In those cases, it is a loss for the
social worker, for the children and families they serve, and
for society at large. Programs, such as loan forgiveness, designed
to address the economic hardship of social workers in highly
critical, but low paying jobs, would help to address this disturbing
situation.
Information that follows serves to document the enormity of
the problem.
- Average loan debt of social work students
from selected colleges and universities
- Stories from social workers struggling to
pay off their debt
- •Legislative proposals to provide loan forgiveness
for social workers
Additional documentation is available on the NASW Web site: http://www.socialworkers.org/advocacy/issues/loanForgiveness.asp
Selections from Loan Indebtedness of
Social Work Students
ALABAMA
- University of Montevallo – Montevallo
, AL – Undergraduate program
Average loan debt for undergraduate
social work students: $8,000 - $10,00
Average starting
salary in area for graduates with bachelor's in social
work degrees (BSWs): $23,000 - $25,000
- University of Alabama – Tuscaloosa
, AL – Undergraduate program
Average loan debt for undergraduate
social work students: $19,000 - $20,000
- Salary: 10-year
loan payments on undergraduate debt along with other
basic life expenses will be unaffordable on a social work
salary, even with a Master's in social work degree (MSW)
MICHIGAN
- University of Michigan – Ann
Arbor , MI – Graduate program
The figures below are for
graduates from August 2003, December 2003 and April 2004.
Debt figures include both graduate and undergraduate debt.
Sixteen month and 20 month students enroll for 4 terms
in the Master's (MSW) program and Advanced Standing students
enroll for 3 terms. All students began the program in Fall
2002.
Average loan debt for 16 month students (December
graduates): $45,640
Average loan debt for 16 month
students of color: $47,094
Average loan debt
for 20 month students (April 2004 graduates): $37,599
Average
loan debt for 20 month students of color: $37,292
Average
loan debt for Advanced Standing students (August 2003 graduates):
$36,728
Average loan debt
for Advanced Standing students of color: $30,852
PENNSYLVANIA
- Eastern University – St.
Davids , PA – Undergraduate program
Mean loan debt of students
graduating with BSW degrees in May 2003: $18,900.
TEXAS
- Our Lady of the Lake University – San
Antonio , Texas – Undergraduate program
Average loan debt
2001-2002: $21,171
Average loan debt 2000-2001: $20,910
Average loan debt
1999-2000: $18,700
VIRGINIA
- Virginia Commonwealth University
The figures below are for graduates in December 2002 and
May 2003.
Graduate level (MSW): 175 total graduates, 120
with debt (about 69%)-average debt $29,885
Bachelor's level
(BSW): 34 total graduates, 25 with debt (about 74%)-average
debt $19,675
Selections From The Need for Loan Forgiveness
for Social Workers
In Their Own Words . . .
- This is my 4th year as school social worker
providing services to at-risk children in an identified low-income
district. I currently have approximately $60,000 in student
loans. I now owe more on my student loans than I did when
I graduated from graduate school with my MSW (master's degree
in social work) in 1999. This is really discouraging to say
the least ... to know that I am in a needed field doing a
needed job, but not making enough money to even lower my
student loans much less ever get them paid off.
- I
have an MSW (master's degree in social work) and am working
in child welfare in Detroit , Michigan . Every month I
struggle to pay my bills, but I stay at my job because I
love my work and I love the children I work with. I put in
an average of 50-60 hours per week, but only get paid for
37.5 of them. I earn $25,112 per year and am repaying my
loan for my master's.
I strongly believe that the children
and families I work with in the foster care system need and
deserve qualified professionals that are trained in social
work. Everyday I see the negative effects that worker turnover
and unqualified workers have on children and their families.
The children, especially "system
children," know when a worker doesn't care and they believe
that they don't matter when they have had 5 plus workers on
their case.
I firmly believe that appropriate compensation
and loan repayment/forgiveness would help qualified, caring
social workers stay in child welfare and continue to make a
difference in children's lives.
- I am an LCSW (licensed clinical social worker)
with a master's degree who earned a 3.8 GPA (grade point
average), but was forced to rack up $40,000 in student loans
to finance my undergrad and MSW (master's in social work)
education. For the first three years of my employment, my
take home pay was $1400 monthly, and $600 of that went to
student loans! I am now only paying 1/3 of take home pay
to student loans, but this is ghastly for a single person
with my earnings. I live in a terrible neighborhood because
I can not afford to live anywhere else. I love my career
and am honored to be a social worker, but have not found
any repayment options for Stafford loan borrowers.
- I
am a graduate of Temple University . I completed the social
work program in 2002 and earned a BSW (bachelor's degree
in social work). I have worked in the child welfare system
for four years. I am currently seeking assistance
with loan forgiveness programs as I am struggling to pay
my student loans. I have been accepted into a master's
program to obtain my MSW (master's degree in social work),
but am putting that off due to my current loans.
… I hear
a lot of upcoming social workers stating that they do not
want to continue in the program due to the high expenses
of college and the low pay that is offered in this profession.
- As
an employee of a non-profit organization working with children
and adolescents, I am interested in loan forgiveness legislation.
It occurred to me as I completed my income tax this year (and
noticed the credit for teachers) that I not only make less
than the special education teachers who teach at the residential
care facility were I work, but I also work longer hours. I
will soon complete my supervision hours and I am struggling
with making a decision whether or not to remain in this line
of work. I know that I provide a needed service, but struggle
with the need to provide for myself, as well.
Legislative Proposals to Provide Loan Forgiveness
for Social Workers
- Child Protective Services Student Loan
Forgiveness Act (H.R. 734/S. 409) — introduced
by Representative Stephanie Tubbs Jones (D-OH) and
Senators Mike DeWine (R-OH) and Senator Jay Rockefeller
(D-WV)
The
bill authorizes loan forgiveness for individuals who
earn bachelor's (BSW) or masters' (MSW) degrees in social
work and work in the child welfare system for at least three
to five years to help states recruit and retain qualified
child welfare staff. Child welfare staff vacancies, turnover,
and lack of training are well documented. Additional information
on the child welfare workforce is available on the NASW Web
site at http://www.socialworkers.org/pressroom/default.asp and http://www.socialworkers.org/advocacy/issues/child_welfare.asp
A survey conducted by NASW in 1994 on students' career
choices found that individuals who were not attracted to the
child welfare field generally cited low salaries, large caseloads,
insufficient opportunities for professional growth, and the
system's lack of resources and effectiveness. As a remedy,
loan forgiveness was at the top of the list.
- College Opportunity for
a Better America Act
(H. R. 1306) — introduced by Representative George
Miller (D-CA)
The bill provides loan forgiveness for qualified
public service employees in a number of critical shortage
areas.
A 2003 report by the Annie E. Casey Foundation stated
that widespread problems in the public sector workforce "not
only undermine the effectiveness of system reform efforts,
[but also . . .] reveal inefficient use of our public resources
and present very real risks to the welfare of already vulnerable
families and children."
- Proposal to expand loan forgiveness to
school social workers and other pupil services personnel
Loan
forgiveness–as proposed in the Teacher Recruitment and
Retention Act (H.R. 438) and the College Quality, Affordability,
and Diversity Improvement Act (S. 1793)–must be expanded
to include the pupil/related services personnel.
When pupil/related
service providers are included, special education personnel
rank among the country's top labor shortage areas. On average,
every local district has at least seven special education
openings per year.
Loan forgiveness as a tool for addressing
the critical shortage of pupil/related services personnel
has been recommended by a former director of the Office
of Special Education Programs (OSEP), U.S. Department of
Education. The recommendation is that Congress
…provide
loan forgiveness for special education and
related services personnel . In the teacher
training area, there is a need to address the increasing
shortage of special education and related services personnel. The law
[IDEA] is meaningless without qualified people to implement
it.
|
About
NASW