In January, the U.S. Department of Education released new rules on "loan forgiveness for public service employees." Some seminarians have borrowed money under the assumption that working in a parish setting or chaplaincy would make them eligible for student loan forgiveness under the College Cost Reduction and Access Act of 2007, but the new rules say no. "Your employment at a non-profit organization does not qualify if your job duties are related to religious instruction, worship services, or any form of proselytizing," the new rules say.
The Huffington Post interviewed a Department of Education spokesman to clarify the new rules:
"Many employees at faith-based social service organizations will be eligible for the PSLF [Public Service Loan Forgiveness] program," said Daren Briscoe, the DOE spokesman. "Individuals working at religiously-affiliated non-profit organizations who perform at least 30 hours of non-religious activities are eligible for PSLF." He added that "consistent with similar long-standing programs, the federal government does not subsidize explicitly religious activity."
Read the new guidelines here. Read the Huffington Post article about the topic here.