DENVER - Graduates of Colorado's colleges now have a new incentive to choose public interest careers so they can help others without worrying about defaulting on their loans.

House Bill 1242, sponsored by Representative Claire Levy (D-Boulder) and Senator Jennifer Veiga (D-Denver) authorizes universities to create loan repayment assistance programs that encourage graduates to consider a low-paying career in the field of public service. Schools will provide graduates with grants to pay back their student loans.

Rep. Levy stated, "With higher rates of tuition and an increasing number of graduates facing substantial debts, we have seen more and more of these graduates unable to consider public interest jobs. In the long run, I see this as a way to help diminish the tremendous wage gap between graduates who go into public service and those who elect to take a higher paying job in the sphere of private business."

"It's important for our colleges to promote altruism as a career," said Senator Veiga. "An alternative career can be more satisfying than a traditional one, but many graduates are afraid of falling into debt while working in the non-profit or public sector."

The bill comes as a result of a program established by a group of University of Colorado Law School students. Under current Colorado law, universities are prohibited from providing grants to students who have already graduated from their programs.