Does $10K student loan forgiveness help you? How old are you? (doctorate, master)
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If things are so great then why do 43 million college graduates and dropouts need a bailout from the government? It doesn't make any sense.
We have record low unemployment but people can't pay their student loans. Why?
Sure it does- college is still too expensive. When I was in college, states still contributed a lot to fund state schools. You could work a summer job and a part-time job during the school year and end up with no or very minimal loans. Now the cost of attendance at some state schools is $100K over four years. There is no way for a student working standard retail/food service jobs that students work to make that in take home pay.
Unfortunately the fed does not control how much states charge for schools or how states allot their tax money. All it can do is offer and forgive loans through various programs and possibly reconsider some aspects of a program that seemed to encourage the rapid increase of college costs.
Unfortunately the fed does not control how much states charge for schools or how states allot their tax money. All it can do is offer and forgive loans through various programs and possibly reconsider some aspects of a program that seemed to encourage the rapid increase of college costs.
You may have noticed that the Fed -- short for Federal Reserve Board -- is causing pain by raising interest rates. That's considered a necessary evil to fight inflation. So presumably that rise in interest rates will also make college loans more expensive.
Yet on the other hand, other forces in the federal government are declaring that borrowing for college is already too expensive. Will the bailouts get bigger in the future, because the Fed is raising rates?
It doesn't make any sense.
I'd be in favor of something like a declaration that future bailouts would only apply to loans for public colleges. And that interest rates for Stafford loans be discounted by 100 basis points or more, for public colleges that don't raise their tuition higher than the official rate of inflation. Then watch as private colleges scramble to reduce tuition to compete.
Spread the news if you know of anyone who combined their loan with a spouse or a now ex-spouse. They should get their applications in ASAP before the mad rush. I'm surprised they also passed this too.
Once the paperwork is done, they can apply for student loan forgiveness.
Congress shuttered the spousal joint consolidation loan program in 2006, which allowed married couples to combine their student debt balances with the idea that a single payment, with one interest rate, would be a more affordable repayment option. But once that program ended, those borrowers were stuck with the combined balances because law prohibited them from being separated, effectively blocking them from consolidating their debt into federal direct loans and taking advantage of federal relief, like the Public Service Loan Forgiveness (PSLF) program and blanket loan forgiveness.
Over a decade later, those borrowers are finally seeing relief. On Wednesday, the House passed the Joint Consolidation Loan Separation Act of 2021, which allows those with spousal loans to separate their balances. Sponsored by Sen. Mark Warner and Rep. David Price, this legislation will ensure the borrowers no longer have to keep paying off debt with a former partner that was abusive and will ensure that the borrowers that are still together can each apply for federal loan forgiveness.
"They will be immediately able to apply for the severance of their loan,"
I paid my student loans off years ago, so it doesn't directly help me. I'm not bitter about that at all. I went to college at a time when it was easy to do so, without incurring a ruinous about of debt. I think it's not impossible to do that today, but it's much harder.
My sister's three kids are all young adults (20, 23, and 26) and each of them will get loans forgiven. My sister also took out PLUS loans on their behalf, and she gets forgiveness too.
It will be very helpful to them. I'm glad to see middle class families getting a leg up.
I paid my student loans off years ago, so it doesn't directly help me. I'm not bitter about that at all. I went to college at a time when it was easy to do so, without incurring a ruinous about of debt. I think it's not impossible to do that today, but it's much harder.
My sister's three kids are all young adults (20, 23, and 26) and each of them will get loans forgiven. My sister also took out PLUS loans on their behalf, and she gets forgiveness too.
It will be very helpful to them. I'm glad to see middle class families getting a leg up.
I posted something about the PPL plus loans and forgiveness a few weeks ago, I'm not exactly straight on whether they will qualify for this forgiveness because of the way it was worded. I'll be interested if she gets it or not. I'm seeing conflicting information.
The first link is the original that I had posted, the 2nd which says yes they qualify for the $10k to $20k forgiveness is one I just found.
I do hope PP loans are included. I didn't understand why they wouldn't be. I had one 20 years ago, cost us about $600 a month starting when he went to college.
NEW: On August 24, 2022, Joe Biden announced a sweeping federal student loan forgiveness order, which Parent PLUS Loans are included in.
Student loan forgiveness programs aren’t just for students. Depending on lender qualification requirements and borrower history, parent loan forgiveness is also possible.
A federal parent PLUS loan may be eligible for forgiveness through an income-contingent repayment plan or the Public Service Loan Forgiveness (PSLF) program. There are also options for parents that take out loans from private lenders.
A parent PLUS loan, or Direct PLUS loan, is a form of federal student aid. Once a student reaches federal student loan limits, parent borrowers will often take out a PLUS loan. A parent PLUS loan is an unsubsidized federal direct loan. Because they are not subsidized loans, interest accrues while the student is in college.
Are Parent PLUS Loans Eligible for Forgiveness? Options for Parent Loan Forgiveness
If you’re a parent borrower with a Direct PLUS loan or a private loan and you’re wondering: can parent PLUS loans be forgiven, consider these options:
Income-Contingent Repayment
Public Service Loan Forgiveness
Temporary Expanded Public Service Loan Forgiveness
Federal Agencies
Military Forgiveness Programs
State Student Loan Forgiveness
Employer-paid Student Loan Assistance
Refinancing
The VERIFY team received several questions about Parent PLUS loans, including whether parents and students are considered separate borrowers and if parents who received Pell Grants are eligible for an extra $10,000 in forgiveness.
Yes, parents with a Direct PLUS Loan and students are each eligible for debt forgiveness, the Department of Education confirmed in an email to VERIFY.
Jessica Thompson, vice president at the Institute for College Access and Success, explained that Parent PLUS loan borrowers would qualify for forgiveness based on their own income and loan, while their children would separately qualify based on the same factors.
“If both the student and the parent received a Federal Pell Grant, each person would be eligible to receive the additional $10,000 in debt cancellation,” the Department of Education told VERIFY.
“Our current understanding is that if the household qualifies by income, each spouse holding qualified loans would be eligible for cancellation,” Thompson said.
This includes Parent PLUS, graduate or undergraduate loans.
“The income criteria is joint, but the cancellation is for each borrower with qualifying loans,” she added.
Student loan forgiveness is not going to happen without congress. Biden can NOT spend billions with an executive order. He proposed this in order to gain dem votes in the mid-term elections. He can't do it and it will be swept under the rug in December. Good luck all.
Agreed, the president doesn’t have the power to “forgive” student loans.
Sure it does- college is still too expensive. When I was in college, states still contributed a lot to fund state schools. You could work a summer job and a part-time job during the school year and end up with no or very minimal loans. Now the cost of attendance at some state schools is $100K over four years. There is no way for a student working standard retail/food service jobs that students work to make that in take home pay.
Unfortunately the fed does not control how much states charge for schools or how states allot their tax money. All it can do is offer and forgive loans through various programs and possibly reconsider some aspects of a program that seemed to encourage the rapid increase of college costs.
I just had a kid graduate from college with zero in student loans. He paid for his college with a combination of college credits earned during HS, scholarships and college savings. He also worked FT while going to school, lived at home instead of on campus and graduated early.
I just had a kid graduate from college with zero in student loans. He paid for his college with a combination of college credits earned during HS, scholarships and college savings. He also worked FT while going to school, lived at home instead of on campus and graduated early.
Not everyone can do all that. Ie: not all high schools have robust dual credit. Many that do still don't have dual credit that is *actual* college level material and the student will have to re-take it.
Not everyone's family home is nearby a university.
People over 55 were completely neglected - people in default were also neglected.
Young kids who have their whole life ahead of them - may be helped.
People with graduate loan debts were not helped.
People earning over $125K were not helped.
Forgiveness without waiver of the accumulated interest and debt collection fees makes this plan hollow.
My opinion is that this was a lot of show - without any real teeth. Anybody else?
Really only interested in the opinions of people who HAVE student loan debt - I'd rather not hear from the bitter people - I already paid my loans, this isn't fair - wah wah wah. Leave that for another thread. Thanks.
I was going to apply but huh ... People in default don't get it?
It'll never be paid off then. I had been paying on mine right up until 2006 when I had to leave my career to be a caregiver. Since the CDC has zero intentions on ever solving the puzzle of autism; and there is no supports for family caregivers of the severe kids; I'll never be able to earn an income for the rest of my life.
Of course it went into default. My entire life & career went into default. had I known I'd only be able to work for a little over a decade after graduating college, I'd have never taken out the loans. The majority of my education was paid by Pell grants. I was a teenage mom with a 9th grade education when I started college. I worked so hard only to wind up like this. Oh well.
Quote:
Originally Posted by Roselvr
You should be able to file bankruptcy for your student loans due to your situation unless your hub makes too much. It can be involved but you're very smart, I know if anyone can figure it out, you can. I know another woman in your shoes but with multiple sick kids except she went and got two degrees that she stopped paying on back in 2011 they were at $100k if not more. I can't even imagine how high her loans are now.
You know where to find me if you need help with filing bankruptcy for those loans. Lots of links on google of people who have gotten it within the last year or so.
Here are a few links to help with filing bankruptcy, read the articles, there is a lot of information in them about filing. The first two links are google searches. It used to be easy to find the bankruptcy articles on google, it took me time to find them now, thankfully I remembered it was a disabled grandmother who got it. She's caring for her autistic grandson.
The article about her had links to another which was reversed but his "situation" is not like yours. He went to expensive schools to get a law degree, then changed his mind after working as a high priced lawyer. He stopped during COVID, now couldn't pay his loans. He was running his mouth off in the press which caught up to him with the loan servicer appealing the ruling which was then over turned because he chose to stop being an attorney.
A grandmother who had nearly $90,000 in student debt had her loans cancelled by a bankruptcy court in Nebraska, adding to an emerging trend of student loan borrowers successfully finding relief through personal bankruptcy.
Jamie Mudd attended college in California and earned associate's degrees in culinary arts and medical science, incurring debts from 26 federally-backed education loans between 2006 and 2015 to attend two schools. In 2015, she moved to Nebraska and began working multiple retail jobs. In 2019, Mudd's developmentally-challenged grandson moved into her one-bedroom apartment and she obtained temporary guardianship.
Escalating financial troubles — including $89,525.38 in student loans with a daily interest accrual of $14.31 — led Mudd to file for chapter 7 bankruptcy in June 2019 and an adversary proceeding in October 2019. The Education Department (ED) initially denied her request for cancellation, but U.S. bankruptcy court in Nebraska ruled in December 2020 that all of Mudd's loans should be discharged.
At the time of filing, Mudd was also responsible for her 17-year-old grandson, who has mild autism and was attending high school. He wasn't employed then and Mudd wasn't getting any financial support from the boy’s parents as they were also unemployed.
At the time of filing, Mudd was also responsible for her 17-year-old grandson, who has mild autism and was attending high school. He wasn't employed then and Mudd wasn't getting any financial support from the boy’s parents as they were also unemployed.
Recent court rulings prove that student debt can be erased in personal bankruptcy.
But most borrowers aren’t aware of that fact, and lenders routinely exploit that ignorance.
“About half of all bankrupt student loan debtors would obtain relief if they took the appropriate legal steps,” Jason Iuliano, an expert on student loan debt and bankruptcy, asserted in an upcoming article in the Duke Law Journal. “Unfortunately, because nearly everyone has bought into the myth that student loans are not dischargeable, most debtors do not take those steps.”
For nearly 15 years, U.S. Navy veteran Kevin Rosenberg owed six figures in student loans.
But on January 7, 2020, a New York judge ruled that the $221,385.49 in student loan debt owed by Rosenberg as of November 2019 was dischargeable under chapter 7 bankruptcy.
His journey with student debt began in 1993, according to the lawsuit, when he took out student loans for his undergraduate degree. He kept up healthy financial habits, repaying his loans faithfully, until he served in the United States Navy on active duty for five years. After completing his tour of duty, he started law school at Cardozo in New York, for which he took out additional student loans.
After he graduated in 2004, Rosenberg consolidated his loans and held a little more than $116,000 in student debt as of April 2005. That number ballooned to about $221,000 over the next 14 years.
He then passed the bar exam in New York and New Jersey and joined a law firm before deciding that a law career wasn’t for him.
A veteran was granted $221,000 in student-loan forgiveness through bankruptcy last year.
But a federal judge revoked that decision because of failure to prove hardship caused by the loans.
US Bankruptcy Court Judge Cecelia Morris forgave Rosenberg's loans, which he got for his undergraduate education and law school, through bankruptcy last year using the Brunner test — a legal test created in 1987 that requires borrowers to show "undue hardship" caused by their student debt. The test defines that hardship as meaning they cannot maintain a minimal standard of living, their circumstances will likely not improve, and they have made a good-faith effort in repaying their debt.
But federal New York Judge Philip Halpern may have proved that the issue isn't so mythical after all. Shortly after Morris' ruling, the Educational Credit Management Corporation — the company that owned Rosenberg's student debt — challenged the ruling under the argument that while Rosenberg took out debt to practice law, he pursued jobs in the "outdoor adventure industry." The company also criticized Morris' interpretation of the Brunner test.
"Inability to pay one's debts by itself cannot be sufficient to establish an undue hardship; otherwise all bankruptcy litigants would have an undue hardship," ECMC wrote in its appeal.
Halpern sided with the student-loan company and revoked Rosenberg's loan forgiveness last month because he did not prove that his loans from college and law school created "undue hardship." Halpern said Rosenberg must go back to bankruptcy court and reevaluate the case.
Fresh start initiative is useless unless they waive the accumulated interest and debt collection fees. Nobody wants to come out of default when sitting waiting for them is another $100K in interest and fees waiting to be capitalized onto the principal. That is a major reason there are loans in default over a decade - so long in fact they are already off the credit report. Coming off default and going into repayment with accumulated interest and fees means their income to debt ratio will skyrocket - so even if the fresh start removes the delinquency, the credit will still plummet because of the ratios.
Right, this whole thing will not be positive for a lot of people, especially ones who do no realize it will cost them more in the end than the $10k forgiveness is worth.
Quote:
Originally Posted by pathrunner
What a lot of people might not know is that after one pays a certain percentage of their student loans, the Dept of Education sends you a letter with a form stating that you can apply for forgiveness. I never did. I kept paying.
For me, it happened because of the percentage AND my age AND disability. I paid for 12 years prior to the pandemic. I held my breath on August 1st, thinking that the deduction might resume. It didn't. And that's a good thing. The recent spike in inflation had already forced me to take a part time retirement job.
I do have to say that my loans were not astronomical, so it was easier to reach the percentage. I can't remember the exact number. Might have been 30.
I'm not understanding your reply. If they sent you information on applying for forgiveness, why didn't you apply? Why would you keep paying it?
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