Student Loan Forgiveness?

Re: Student Loan Forgiveness?

• simplyelise member

  

  July 2015

  I get a ton of junk email and spam phone calls about student loan consolidation or forgiveness. I don't even have any student loans in my name, we just have some from DH. I assume these are all spam or scams. 

  
  

  If you want to look into legitimate student loan forgiveness, go straight to the source: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation

  
  

  There are a lot of requirements for your area of employment and your payment history and payment plan. Most likely, you are better off just paying normally. 

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• vlagrl29 member

  

  July 2015

  There is also the student loan forgiveness program where the payment plan is based on your salary and you have to reapply for it each year.  If you make those payments on time for 25 years, everything after that time is forgiven.

  
  

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• Xstatic3333 member

  

  July 2015

  vlagrl29 said:

  There is also the student loan forgiveness program where the payment plan is based on your salary and you have to reapply for it each year.  If you make those payments on time for 25 years, everything after that time is forgiven.

  A big issue with this plan, however, is that you will owe taxes on the amount forgiven.
  
  In general I think the forgiveness programs (IBR/PAYE) are a great way to keep current on your loan if there is a huge discrepancy between your income and loan total. Most of us, however, are better off on one of the standard plans, perhaps accelerated. A possible exception is public service loan forgiveness, which can make sense for some people.
  
  Whatever you do, never pay anyone to help you onto a federal loan forgiveness plan. There are loads of scams out there, but these programs are free and your services should be able to help you onto them.

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• KatieCutie05 member

  

  July 2015

  Theres very few that are actually beneficial... and you'd have to have a lot of debt and a very small income with no raises. MAYBE if you took out 200k to be a lawyer and decided to work at mcdonalds for the rest of your life. but thats about it. 

  theres an income based one which you pay i think its like 10% of your income (not to exceed the 10 year standard payment plan amt) and any amount remaining is forgiven after 25 years - then you owe taxes on the amount thats forgiven. Again you'd end up paying an insane amount of interest and the liklihood of your income staying low enough for 25 years is slim to none. 

  
  

  Public service will forgive it in 10 years instead and no taxes are owed. Its again based on your income. you'd have to have a very high debt level and love your job (because you could make more elsewhere and just use your income to pay the student loans)  for even that to be worth it. 

  
  

  Ofcourse theres always forgiveness due to death or disablement. of the borrower.... i don't recommend that tho. 

  

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• short+sassy member

  

  July 2015

  simplyelise said:

  I get a ton of junk email and spam phone calls about student loan consolidation or forgiveness. I don't even have any student loans in my name, we just have some from DH. I assume these are all spam or scams. 

  
  

  If you want to look into legitimate student loan forgiveness, go straight to the source: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation

  
  

  There are a lot of requirements for your area of employment and your payment history and payment plan. Most likely, you are better off just paying normally. 

  Unfortunately, I have to answer my phone even when I don't recognize the number, because I do a lot of side work for a variety of companies.

  I almost enjoy it when I answer the phone and some random telemarketer asks, "We have a special debt consolidation program for you today.  Do you have over $5,000 in credit card debt?"  Me: "No, I don't have any credit card debt."  They are so thrown by that!  There is usually a moment of stunned silence and then a stammered, "Oh!  Sorry to have bothered you."
  

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