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Old 05-15-2018, 10:57 AM
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Default student loan forgiveness

Does anyone know how to obtain student loan forgiveness? Any info would be great. Thank you
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Old 05-15-2018, 12:11 PM
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I googled that term and came up with 131,000 results. Maybe if someone has actually had student loans forgiven on here, they can chime in as to practical advice.

Are you not wanting to repay your loan(s)?
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Old 05-15-2018, 12:26 PM
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There are some forgiveness programs that are specific to certain fields. They typically involve taking a job in an under-served area. For example, newly graduated doctors can get repayment by taking a job in a rural community lacking in doctors.

Look online to see if anything is available in your field. Keep in mind that it may require you to relocate and commit a certain number of years to that job.

A far easier plan is to just work hard and pay your bills the usual way.
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Old 05-15-2018, 03:20 PM
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Originally Posted by disneysteve View Post
Keep in mind that it may require you to relocate and commit a certain number of years to that job.

A far easier plan is to just work hard and pay your bills the usual way.
Agreed. It depends on the pay differential... Would you want to work in an under-served area earning $70k/yr for 10 years so that you can get your $100k SLs forgiven? Or would you prefer to work in a larger market earning $150k/yr and pay off your loans in 5 years? By my math, the former option costs you about $400k in lost wages, so not really a great deal. Just earn a good income & pay them off.

Of course, if you'll earn $70k regardless with little hope of increase, maybe the math is different.... But in most fields, that's not the case.
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Old 05-15-2018, 05:07 PM
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I'll forgive you for your student loans. Do you feel better now?
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Old 05-19-2018, 04:52 AM
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There are Teacher Student Loan Forgiveness Programs. I used it a couple of years ago and got rid of 17,500 dollars because I was a special education teacher in a high needs district. Of course stipulations applied, hurdles to jump through, etc... but the form itself took 5 minutes and required my superintendents signature.
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Old 05-19-2018, 05:36 AM
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Have two friends on the loan forgiveness program.

One of them owe 190k, makes 110k/year. Wife does not work. Has one kid. His monthly payment is 480/month. 10 year forgiveness since the hospital is not for profit. Eventually he'll end up paying 60k on a 190k loan.

So here's the thing.

If you work for a NON for profit organization and set yourself on the income based payments, you need to calculated if loan forgiveness is worth it. It's based on HOUSEHOLD income so if your spouse works, that will be considered into the income based payment calculation.

If you don't qualify for the non-for-profit track, then 25 years loan forgiveness can be an option. But here's the thing...this version is quite terrible since after 25 years, the amount of loans forgiven will be considered as INCOME and will be subjected to INCOME Tax. So if you racked up 200k worth of student loans and pay 480/month which doesn't even cover interest over 25 years, you will be forgiven at an amount that is higher than 200k, like 270k or something..which is then subjected to a 80k worth of income tax. So good luck with that one.

Oh also Trump may want to reverse anything Obama signed so you never know what 10 or 25 years from now looks like.
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Old 05-19-2018, 06:04 AM
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25 years loan forgiveness
This is insane! If you can't manage to repay your student loans in 25 years, you are seriously failing at life. Unless there was some major disability that prevented you from working, in which case there's probably some other way to get out of the loans, what the heck were you doing for 25 years? Why is this even an option?
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Old 05-19-2018, 07:09 AM
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This is insane! If you can't manage to repay your student loans in 25 years, you are seriously failing at life. Unless there was some major disability that prevented you from working, in which case there's probably some other way to get out of the loans, what the heck were you doing for 25 years? Why is this even an option?
A lot of private school attendees who studied South African history and ends up being a cashier at Target.
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Old 05-19-2018, 07:50 AM
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A lot of private school attendees who studied South African history and ends up being a cashier at Target.
They donít deserve to have their loans forgiven.
Gailete and moneybags like this.
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Old 05-19-2018, 10:28 AM
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They donít deserve to have their loans forgiven.
Well, either you put them on a payment plan or they will just not pay at all. Some actuary probably crunched the numbers and thought maybe this is a better way to extract some funds back.
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Old 05-20-2018, 05:58 AM
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I cannot fathom loans in this amount unless you are working towards being a doctor, pharmacist or something that is truly a specialty and you are good enough at it, that there is no chance you will end up on the night shift at McDonalds or at Target unless in pre-med you find that you faint at the sight of blood.

Other than medical professionals or lawyer types, I've rarely run into someone with a college degree that is working in their original field of study. I don't know when students must declare their majors at this point, but they really need to intern each summer to learn more about the fields that they are considering. Even giving a company a month of time lets you see loads of things about the major you are considering. Before or during the early years of college, a student really needs to go through counseling and testing to find the areas that they are best suited for and then try to match them up with an appropriate internship program.

I haven't been feeling too well for the last couple months and so have been spending a lot of time chilling in front of TV shows. I have learned more about so many different potential careers that maybe didn't exist when I was younger, or I had just never heard of them. Things like a forensic accountant I would have found fascinating. Never had heard of it though.

I wonder how many of these students that are overwhelmed by student loans, did they carefully budget for what they needed, or did they take all they could? When getting a mortgage, you should be taking just what you need. You don't get an extra $10K just in case and the bank probably wouldn't let you. On top of how much these kids have earned and set aside over the last 3-4 years before college? The amount you take in a loan should be the bare minimum to get you what you need in handling college costs. Those that have incredibly high loans and then want to find ways to not have to pay them, seem to be making some bad financial decisions right from the beginning.
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Old 05-20-2018, 06:30 AM
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Other than medical professionals or lawyer types, I've rarely run into someone with a college degree that is working in their original field of study.
College major really doesn't matter to most people or most jobs. Even something like a doctor doesn't necessarily need to have an undergrad degree in a science field. I had plenty of med school classmates who didn't have science degrees.

What matters is getting a degree - period. Job listings often have a college degree as a requirement. The field of study isn't what's important. Earning a college degree takes a skill set that translates well in the working world: time management, reading and writing ability, working with others, adapting to new things, critical thinking, etc. Obviously, you can have all of those skill without a college degree. It's just harder to document them that way.

I think the data I've seen say that only about 27% of college grads work in their degree field but over 60% were in a job that required a college degree.

Another thing to consider is that many of the most in-demand jobs today didn't even exist 10 years ago so few if any people doing them have degrees specifically in those fields. And for older folks like me (mid 50s), many are working in jobs and entire industries that weren't around when we went to college.
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Old 05-20-2018, 06:32 AM
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53% of the students actually earn a degree after 5 years. That's a statistic people shouldn't be taken lightly. Many many students, almost half will not make it through college with anything to show for except mountains of student loan debt. And you know they lost their aid, scholarship, or whatever they had going in because their GPAs were a mess, hence not able to get their degree.

You'll be surprised at how many people end up working at Starbucks with student loans and NO degree.

Last edited by Singuy; 05-20-2018 at 06:45 AM.
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Old 05-20-2018, 06:32 AM
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Well, either you put them on a payment plan or they will just not pay at all. Some actuary probably crunched the numbers and thought maybe this is a better way to extract some funds back.
I'm totally fine with them having a payment plan. That's a must. But the payments shouldn't end until the debt is repaid. Make it a 25-year repayment. That's what my med school loans were. I paid them off early but I'm sure there are plenty who don't and take the full 25 years. There's no forgiveness. At the end of 25 years, you're debt-free. Just like a mortgage.
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Old 05-20-2018, 06:39 AM
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I'm totally fine with them having a payment plan. That's a must. But the payments shouldn't end until the debt is repaid. Make it a 25-year repayment. That's what my med school loans were. I paid them off early but I'm sure there are plenty who don't and take the full 25 years. There's no forgiveness. At the end of 25 years, you're debt-free. Just like a mortgage.
So if you earn 10 dollars/hr, or 1500/month after payroll taxes..these people will have 600/month taken away @ 25years of 100k loan. These people will be dumpster diving for 25 years.
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Old 05-20-2018, 06:52 AM
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So if you earn 10 dollars/hr, or 1500/month after payroll taxes..these people will have 600/month taken away @ 25years of 100k loan. These people will be dumpster diving for 25 years.
Somebody with a college education and no major physical or mental disability shouldn't be earning $10/hour, and certainly not for 25 years. A simple retail job will pay more than that to start. Target pays $12 minimum. Aldi pays $12.35 with a guaranteed increase after 6 months and management starts at $16.60.

Those aren't fantastic jobs, but it's somewhere to start until you find something even better.
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Old 05-20-2018, 06:59 AM
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Somebody with a college education and no major physical or mental disability shouldn't be earning $10/hour, and certainly not for 25 years. A simple retail job will pay more than that to start. Target pays $12 minimum. Aldi pays $12.35 with a guaranteed increase after 6 months and management starts at $16.60.

Those aren't fantastic jobs, but it's somewhere to start until you find something even better.
Except they don't have a college education. They failed a lot of their classes and couldn't earn their degree as I pointed out that almost half of them don't have a degree.

Also 100k worth of student loans is super easy to rack up.

Example student.

Goes to private university with a lot of scholarship and aid, school charges 40k/year but 30k is paid for by scholarships and aid. Borrows 25k first year for tuition, books, room and board. Ends up doing poorly and looses scholarship for year 2. Student decides to give it another chance and really focus. Takes out 60k this year without working because of hardcore focusing. Finds out he's not college material. Lingers around for another half a year after that with another 30k worth of loans and decide to call it quits.

Yeah, a high percentage of people ends up in this situation.
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Old 05-20-2018, 07:00 AM
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So if you earn 10 dollars/hr, or 1500/month after payroll taxes..these people will have 600/month taken away @ 25years of 100k loan. These people will be dumpster diving for 25 years.
The choice to take out those loans were theirs. It is possible to live frugally without dumpster diving. But I think the desire for loan forgiveness comes from the same generation where everyone got participation trophies. No one had to work hard for what they have or get. Nor do many seem to think that they must be responsible for their finances. It is everybody else's fault, certainly not theirs. I see this kind of thinking on many of the forums that I go to. You can almost tell how old they are by how much blame or responsibility they will take for their problems.
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Old 05-20-2018, 07:08 AM
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The choice to take out those loans were theirs. It is possible to live frugally without dumpster diving. But I think the desire for loan forgiveness comes from the same generation where everyone got participation trophies. No one had to work hard for what they have or get. Nor do many seem to think that they must be responsible for their finances. It is everybody else's fault, certainly not theirs. I see this kind of thinking on many of the forums that I go to. You can almost tell how old they are by how much blame or responsibility they will take for their problems.
It's the result of crazy tuition cost and lack of focus, using college wisely that you end up with so many people who can't find any ways to pay off their crazy amount of loans. Can you name me one school that charges 15k/year(inflation adjusted) 30 years ago? TOo many parents just tell their kids "you must go to college" but doesn't give them any directions. They make it seem like money borrowed for education is the best investment one can make so you don't have to borrow cautiously.

It's crazy that life altering decisions are in the hands of a 18 year old. It's okay to find you're not college material in the past. Now this mistake will cost you your entire life.
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