SL forgiveness

ta78 · July 2014

Deleting.

MommyLiberty5013 · July 2014

People just do what the system lets them do. And, because the little guys and gals who pay these programs via tax dollars are so far removed from the people like A and B, people like A and B have no qualms about using the programs and abusing the system.

The U.S. has many great and helpful programs for assistance, which I think are needed. But, the problem is too much reliance on them. People can rely on them because there are few checks and balances and little oversight.

I am a fiscal and social conservative. It's tough when people like me and other who share this mindset wish for overhaul of these systems, not to harm people, but to actually give them the short-term help they need with skills and/or learned objectives that will benefit them in the long-run. We are the ones getting called misers, greedy and the 1%......

Riiight.....because fiscal responsibility has everything to do with the top 1% of income earners in the nation....

vlagrl29 · July 2014

I have no problem with teachers getting some loan forgiveness and honestly I'm not shocked govt. employees get it too. I am in favor of income sensitive payments because at least the person can pay it back even though it's not much. I've had to do it before myself, but I didn't have hundreds of thousands of loan debt though.

I'm wondering when the student loan bubble will hit. I'm sure there are so many people not able to even make the minimum payment.

mana8503 · July 2014

I'd like to know how all federal employees are being forgiven. I am a DoD CIV and have not seen this. We have a student loan repayment where we have to sign up for 3 years of service, but it's not guaranteed you get it 3 years. I got it one year, but that was it. It made a dent, but I paid the rest. Well, it'll be paid off next month.

mana8503 · July 2014

Also - I paid taxes on that money. It was added to my income each pay.

Xstatic3333 · July 2014

Your friends have been lucky so far-it is a very risky move to count on that forgiveness. Just today a bipartisan bill was presented to the Senate that would cap forgiveness around $56,000 until 30 years have passed. It would also make income-based payments the default payment system (to reduce defaults from people who don't know IBR and PAYE exist). This will likely prevent defaults, but will also keep many people from realizing how much they're losing to interest.

I'm actually eligible for PSLF but not doing it, mainly because I'm afraid I'll slow down my loan payments, the program will change, and I'll be stuck with the interest. FTR I don't think all government employees qualify. It depends what type of work they're doing. I know my H doesn't, for example (he's a state-employeed scientist).

I have mixed feelings about forgiveness programs. I'm in favor of them when they are used for the right reasons, like my friend who went to a top-tier law school but fell in love with immigration law, a low-paying field where she'll really make a difference. I do, however, think it's ridiculous how many people borrow way beyond what they need for tuition. I knew people paying for weddings on Grad Plus loans, people paying for expensive vacations, the works. I'm NOT really a fiscal/social conservative (I lean left but make my own mind up about given issues) and completely agree that that's abuse.

ta78 · July 2014

mana8503 said:

I'd like to know how all federal employees are being forgiven. I am a DoD CIV and have not seen this. We have a student loan repayment where we have to sign up for 3 years of service, but it's not guaranteed you get it 3 years. I got it one year, but that was it. It made a dent, but I paid the rest. Well, it'll be paid off next month.

I don't know exactly, he is a DoD civilian also. It is listed on the website I think though.

Another thing about the reduced payment thing though is it's based on his teacher salary and hasn't been adjusted since getting his new job. He is making nearly double now.

Xstatic3333 · July 2014

ta78 said:

mana8503 said:

I'd like to know how all federal employees are being forgiven. I am a DoD CIV and have not seen this. We have a student loan repayment where we have to sign up for 3 years of service, but it's not guaranteed you get it 3 years. I got it one year, but that was it. It made a dent, but I paid the rest. Well, it'll be paid off next month.

I don't know exactly, he is a DoD civilian also. It is listed on the website I think though.

Another thing about the reduced payment thing though is it's based on his teacher salary and hasn't been adjusted since getting his new job. He is making nearly double now.

He should have to reapply every year, and if he's making that much more (I'm guessing $80,000 based on teacher salaries where I am?) both of their payments will go wayyyy up. With the debt balance so high they'll probably still qualify for a couple of years, but it could be a rude awakening.

mana8503 · July 2014

Xstatic3333 said:

ta78 said:

mana8503 said:

I'd like to know how all federal employees are being forgiven. I am a DoD CIV and have not seen this. We have a student loan repayment where we have to sign up for 3 years of service, but it's not guaranteed you get it 3 years. I got it one year, but that was it. It made a dent, but I paid the rest. Well, it'll be paid off next month.

I don't know exactly, he is a DoD civilian also. It is listed on the website I think though.

Another thing about the reduced payment thing though is it's based on his teacher salary and hasn't been adjusted since getting his new job. He is making nearly double now.

He should have to reapply every year, and if he's making that much more (I'm guessing $80,000 based on teacher salaries where I am?) both of their payments will go wayyyy up. With the debt balance so high they'll probably still qualify for a couple of years, but it could be a rude awakening.

-----

Federal is on the forgiveness list but I don't think that means it's tax free like some of the others. I maybe wrong, I know my one cw has looked into it because he has a crazy amount of debt. He and his wife are working 2-3 jobs each to pay it off.

Also, It usually takes 2 years to get to your full performance pay. So it might take a while to get that rude awakening due to that too.

smbenevides1989 · July 2014

mana8503 said:

I'd like to know how all federal employees are being forgiven. I am a DoD CIV and have not seen this. We have a student loan repayment where we have to sign up for 3 years of service, but it's not guaranteed you get it 3 years. I got it one year, but that was it. It made a dent, but I paid the rest. Well, it'll be paid off next month.

I'm also a DoD Civ, but I am not eligible for any loan forgiveness. The only thing we get is if we go to school while working, they will pay for the tuition and books as long as it is in the field they agree to.

But either way, I don't mind my SLs from when I went to school to study architecture (not related to my field at all, but gave it up for other personal reasons). IF things go well, I should pay them off by May of next year.

I'm all up for assistance when needed, but there are just too many people who abuse the system. Once the SL bubble pops, its going to be ugly.

Xstatic3333 · July 2014

This thread reminded me of an article I read the other day:

Link for anyone who is interested

Basically, it is a Boston.com article that asked ten young professionals/young adults about their experiences living in Boston with SLs. Boston's a really expensive city-my BFF and her BF are looking at apartments right now and 1 BRs with bus line access are running $1,100-$1,500 in the immediate suburbs. Still, overall I was shocked by how little most of the people on this list seem to "get" about how loans works. For example, the young lawyer on IBR who doesn't realize she could make extra payments if she wanted, or the girl on IBR who doesn't realize her husband's income will be taken into account once she is married.

I do feel for people who have Sallie Mae as their only federal servicer. They give very poor information compared to Great Lakes, who spelled out all my repayment options very clearly for me. For example, we'd like to put H's SLs with Sallie Mae on an extended repayment plan so we can snowball his car payment, and whenever he calls nobody will even tell him what his payment would be, how to switch, etc. Once they tried to transfer us to a manager and instead transferred us to a credit card company (!?) I know it's an option he should have, he still has enough debt left.

I do think, however, that I'd like to see people in general take the time and responsibility to learn the terms of these massive loans, just like they would with a mortgage. I agree with PPs, the SL bubble is going to be bad when it bursts.

KatieCutie05 · July 2014

lets not insult the people who borrow too much on student loans. 99% of them just plain don't know any better because NO ONE teaches them. Actually ppl teach them that those loans are free money. Most 18 year olds follow what their parents and educators tell them because they haven't been on their own to be able to learn anything for themselves yet.

180k in debt and 2 masters degrees - thats not that much. I have 110k and 1 bachelors degree okay. And i'm not eligible for any forgiveness so i have to pay all that back and they are probably making more then me.

I am so flipping sick of people telling me how stupid i was. Lecturing me about willingly signing my name to 100k in debt. Um hello i didn't. I signed my name to about 16k... the rest were in my parents name... all about 4-8k at a time nothing HUGE. other then my 20k private school mistake for one semester, and listening to my mom tell me to add 1k on each semester for school supplies... i didn't know that i was signing up for 100k in debt. After my 20k mistake, i transfered to a state school and lived at home to save money, it was just too little too late. Honestly i'm just thankful that I learned my lesson halfway thru sophomore year or i'd really be screwed. After that i was worried but everyone just said not to worry and i'll pay it off when i graduated when i make more money. My biggest mistake was i listened to authority and didn't bother to form my own opinion. I mean cmon back then i celebrated a 100 dollar paycheck... i didnt have any clue about money and i thought there was NO way i could pay my student loans til i get a REAL job.

This student loan industry is INSANE... federal loans don't check your credit or your ability to pay back the debt at all... they just give you whatever you need/want with no limit ever, no income check, and no credit check. Thats whats going to make this SL bubble pop. Its going to be just like the housing crisis. They are being way too nice making ppl believe that they deserve and they are entitled to go to a really expensive school regardless of their income or ability to repay. I'm sorry but low income people shouldn't ever be lent 100k dollars that theres NO way they can repay... but its done all the time for thousands of people. Then they are gauranteed by the tax payers of the US when someone isn't able to pay it off for whatever reason. Some people need that forgiveness and some people take advantage of it. Just like any other government welfare system.

formerlyGDaisy09 · July 2014

True Story, My sister had a college advisor advise her and all the students in their program to just borrow what they need to live and enjoy life while they're young. my sister used this logic to use student loan money to purchase a realy nice road bike (and all the equipment to go along with it) because "once you've borrowed so much already what's another $2000?"

granted my sister and her collegues were set to graduate into a field where starting salaries are easily around $80K (sis is living in Boston making about $75K her first year out). But that is terrible advise for a college official to be giving students.

Xstatic3333 · July 2014

AprilH81 said:

Gdaisy09 said:

True Story, My sister had a college advisor advise her and all the students in their program to just borrow what they need to live and enjoy life while they're young. my sister used this logic to use student loan money to purchase a realy nice road bike (and all the equipment to go along with it) because "once you've borrowed so much already what's another $2000?"

granted my sister and her collegues were set to graduate into a field where starting salaries are easily around $80K (sis is living in Boston making about $75K her first year out). But that is terrible advise for a college official to be giving students.

That is horrifying...

Agree. That's reprehensible. There needs to be better information out there about how SLs work and their repurcussions.

mana8503 · July 2014

@KatieCutie05‌ - I don't think anyone is insulting people with massive loans. It's what they are doing about it now. Are they getting informed about their options? Fitting the loan into their budget? Or Are they trying to scam the system?

brij2006 · July 2014

mana8503 said:

@KatieCutie05‌ - I don't think anyone is insulting people with massive loans. It's what they are doing about it now. Are they getting informed about their options? Fitting the loan into their budget? Or Are they trying to scam the system?

Exactly that.

My BFF has a teaching degree. She had a full-time teaching position and decided to quit it because it was too stressful. Now she's working at a distribution center packing boxes and making minimum wage. She can't afford her student loans right now so she's decided to go back to school to get her masters in Special Education. She's under the understanding that she's 4 years out of school and in 6 years her loans will be forgiven because she has a teaching degree. So why not add to them?

I try explaining to her that she has to be an active teacher who is in the classroom. In the meantime her undergrad loans are deferred, she's adding more to them for her masters, she keeps applying for and can't find any teaching positions, and is only making $14k/year.

Her concept on the student loan repayment, forgiveness, and budgeting is scewed. She's actually always been great with money and budgeting, but just does not understand the concept of the loans she has taken out.

Xstatic3333 · July 2014

brij2006 said:

mana8503 said:

@KatieCutie05‌ - I don't think anyone is insulting people with massive loans. It's what they are doing about it now. Are they getting informed about their options? Fitting the loan into their budget? Or Are they trying to scam the system?

Exactly that.

My BFF has a teaching degree. She had a full-time teaching position and decided to quit it because it was too stressful. Now she's working at a distribution center packing boxes and making minimum wage. She can't afford her student loans right now so she's decided to go back to school to get her masters in Special Education. She's under the understanding that she's 4 years out of school and in 6 years her loans will be forgiven because she has a teaching degree. So why not add to them?
I try explaining to her that she has to be an active teacher who is in the classroom. In the meantime her undergrad loans are deferred, she's adding more to them for her masters, she keeps applying for and can't find any teaching positions, and is only making $14k/year.
Her concept on the student loan repayment, forgiveness, and budgeting is scewed. She's actually always been great with money and budgeting, but just does not understand the concept of the loans she has taken out.

Yikes, yes, those loans aren't going to be forgiven unless she makes 120 qualifying monthly payments while employed as a teacher. Plus, I think the clock will start over for the grad loans. Eek.

I have a couple of other friends who are confused about forgiveness programs-namely, they've never signed up and think because they are working public service jobs the payments will magically go away after ten years without any paperwork or documentation. They are people who will benefit from this program for the right reasons, and I tried tactfully explaining how they work based on my own research, but for whatever reason they just don't want to hear it. Their payments should work retroactively as long as they've kept documentation, but still, it's strange all the misinformation out there.

vlagrl29 · July 2014

brij2006 said:

mana8503 said:

@KatieCutie05‌ - I don't think anyone is insulting people with massive loans. It's what they are doing about it now. Are they getting informed about their options? Fitting the loan into their budget? Or Are they trying to scam the system?

Exactly that.

My BFF has a teaching degree. She had a full-time teaching position and decided to quit it because it was too stressful. Now she's working at a distribution center packing boxes and making minimum wage. She can't afford her student loans right now so she's decided to go back to school to get her masters in Special Education. She's under the understanding that she's 4 years out of school and in 6 years her loans will be forgiven because she has a teaching degree. So why not add to them?
I try explaining to her that she has to be an active teacher who is in the classroom. In the meantime her undergrad loans are deferred, she's adding more to them for her masters, she keeps applying for and can't find any teaching positions, and is only making $14k/year.
Her concept on the student loan repayment, forgiveness, and budgeting is scewed. She's actually always been great with money and budgeting, but just does not understand the concept of the loans she has taken out.

your BFF is in for a rude awakening

brij2006 · July 2014

vlagrl29 said:

brij2006 said:

mana8503 said:

@KatieCutie05‌ - I don't think anyone is insulting people with massive loans. It's what they are doing about it now. Are they getting informed about their options? Fitting the loan into their budget? Or Are they trying to scam the system?

Exactly that.

My BFF has a teaching degree. She had a full-time teaching position and decided to quit it because it was too stressful. Now she's working at a distribution center packing boxes and making minimum wage. She can't afford her student loans right now so she's decided to go back to school to get her masters in Special Education. She's under the understanding that she's 4 years out of school and in 6 years her loans will be forgiven because she has a teaching degree. So why not add to them?
I try explaining to her that she has to be an active teacher who is in the classroom. In the meantime her undergrad loans are deferred, she's adding more to them for her masters, she keeps applying for and can't find any teaching positions, and is only making $14k/year.
Her concept on the student loan repayment, forgiveness, and budgeting is scewed. She's actually always been great with money and budgeting, but just does not understand the concept of the loans she has taken out.

your BFF is in for a rude awakening

That's what I've told her too. We used to talk money a couple of years ago until last year she willingly resigned from her teaching position, and I questioned her about what she would do financially. Now she talks to me about it again, because she can barely make it on minimum wage and she wants to know what we do to really cut our budget to the bare bones. She also has a $15k car (with payments) and cable. So that's made for this to be an interesting conversation.

ta78 · July 2014

For those also working for the DoD, here is what I found looking up public service loan forgiveness. I think every base has it's own program in addition to this.

Qualifying employment is any employment with a federal, state, or local government agency, entity, or organization or a not-for-profit organization that has been designated as tax-exempt by the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code (IRC). The type or nature of employment with the organization does not matter for PSLF purposes. Additionally, the type of services that these public service organizations provide does not matter for PSLF purposes.

Another website said that Public Service Loan Forgiveness program wasn't taxable.

vlagrl29 · July 2014

brij2006 said:

vlagrl29 said:

brij2006 said:

mana8503 said:

@KatieCutie05‌ - I don't think anyone is insulting people with massive loans. It's what they are doing about it now. Are they getting informed about their options? Fitting the loan into their budget? Or Are they trying to scam the system?

Exactly that.

My BFF has a teaching degree. She had a full-time teaching position and decided to quit it because it was too stressful. Now she's working at a distribution center packing boxes and making minimum wage. She can't afford her student loans right now so she's decided to go back to school to get her masters in Special Education. She's under the understanding that she's 4 years out of school and in 6 years her loans will be forgiven because she has a teaching degree. So why not add to them?
I try explaining to her that she has to be an active teacher who is in the classroom. In the meantime her undergrad loans are deferred, she's adding more to them for her masters, she keeps applying for and can't find any teaching positions, and is only making $14k/year.
Her concept on the student loan repayment, forgiveness, and budgeting is scewed. She's actually always been great with money and budgeting, but just does not understand the concept of the loans she has taken out.

your BFF is in for a rude awakening

That's what I've told her too. We used to talk money a couple of years ago until last year she willingly resigned from her teaching position, and I questioned her about what she would do financially. Now she talks to me about it again, because she can barely make it on minimum wage and she wants to know what we do to really cut our budget to the bare bones. She also has a $15k car (with payments) and cable. So that's made for this to be an interesting conversation.

If she really won't go back to teaching then she is wasting money on a masters. I have a teachers certificate for K-12 music education and I have never used it. When I student taught I could see how much the teacher had to use classroom management, discipline, parent meetings, working with the staff. It seemed too much for me with just an average salary. I preferred private teaching and that's what I continued to do. It takes a special person to be a teacher in the public schools.

brij2006 · July 2014

vlagrl29 said:

brij2006 said:

vlagrl29 said:

brij2006 said:

mana8503 said:

@KatieCutie05‌ - I don't think anyone is insulting people with massive loans. It's what they are doing about it now. Are they getting informed about their options? Fitting the loan into their budget? Or Are they trying to scam the system?

Exactly that.

My BFF has a teaching degree. She had a full-time teaching position and decided to quit it because it was too stressful. Now she's working at a distribution center packing boxes and making minimum wage. She can't afford her student loans right now so she's decided to go back to school to get her masters in Special Education. She's under the understanding that she's 4 years out of school and in 6 years her loans will be forgiven because she has a teaching degree. So why not add to them?
I try explaining to her that she has to be an active teacher who is in the classroom. In the meantime her undergrad loans are deferred, she's adding more to them for her masters, she keeps applying for and can't find any teaching positions, and is only making $14k/year.
Her concept on the student loan repayment, forgiveness, and budgeting is scewed. She's actually always been great with money and budgeting, but just does not understand the concept of the loans she has taken out.

your BFF is in for a rude awakening

That's what I've told her too. We used to talk money a couple of years ago until last year she willingly resigned from her teaching position, and I questioned her about what she would do financially. Now she talks to me about it again, because she can barely make it on minimum wage and she wants to know what we do to really cut our budget to the bare bones. She also has a $15k car (with payments) and cable. So that's made for this to be an interesting conversation.

If she really won't go back to teaching then she is wasting money on a masters. I have a teachers certificate for K-12 music education and I have never used it. When I student taught I could see how much the teacher had to use classroom management, discipline, parent meetings, working with the staff. It seemed too much for me with just an average salary. I preferred private teaching and that's what I continued to do. It takes a special person to be a teacher in the public schools.

She actually worked in a private Lutheran school, which is what she really wants. Her plan is to get back into teaching, but she's being very picky as to where that's at and what she gets. I keep trying to get through to her that right now she just needs to be in the classroom in general. This isn't a time to be picky about what and where you want to be at in a school district. Teaching positions are very scarce around here.

CuriousKiddosMama · July 2014

I didn't get to read the original before it was deleted- but I qualified for 5k in loan forgiveness for working 5 years in a title 1 school. It WAS taxable, so it may be that they are completely misunderstanding the program that they believe they will qualify for. I was a social studies teacher, and 5 k was what all teachers except Math, Science and Special Ed qualify for- those get more re-payed because they are high needs across the US, but even then I think my sister (math teacher) will qualify for 17k in forgiveness. In order to qualify for most of the teacher programs I know about you have to teach in a title 1 school for 5+ years.

SL forgiveness

Re: SL forgiveness

Choose Another Board

Search Boards