The Problem with Federal Loan Forgiveness Programs

Loan forgiveness denied

I have worked for the Atlanta Public School district for 7 years in a Title 1 school. I meet the criteria to have all my 15K loan forgiven except I started accepting loans for school in 1995 which is 3 years before the October 1998 cutoff. Why is that date the cutoff point? can anyone explain that to me? Which politician can I write too?

misstatement of facts

This article misstates the terms of the program, which DOES provide a significant payoff for students with high loan debt who want to go into low-paid public sector or nonprofit jobs. The ten year repayment plan for this program is income-based, so you make 120 payments based on your salary (which for most people working public sector or nonprofit jobs will be less than the standard payment). Then after 10 years of those reduced payments, the federal government forgives the rest. So, even with the "10 year repayment plan" requirement, many students (particularly students with advanced or professional degrees) can get forgiveness worth tens of thousands of dollars.

The only people that this will not help is people who make enough or have low enough loan debt that they can afford to make full loan payments. That's exactly how it should work.

Doesn't work for me either - public service loan forgiveness

I was so excited when I heard about this program. Filled out the application, then started crunching the numbers. Turns out you can only use the highest payment plan option. When I use that option, I pay the entire debt off in 110 payments. I'm so disappointed. I thought this would be some real relief. Sigh...

Teaching

Maybe students should think aabout earnings ppotential before taking education courses. The world has changed, so have students, parents and expenses. I am 65, receiving $402 per month in SSA benefits because I stayed home with my kids while they were little, then back to teach, but haad health problems although I am not considered totally disabled. My long-gone husband was no where to be found until after the limitations VA places on child support cases so now I have an address for hiim. Needless to say, he paid no child support. I was and still am considered a good teacher. My kids went to great colleges on scholarship but I warn dtarry eyed teacher candidates, to always keep a staash of money or another kind of job handy to work during those hungry times.

Loan Forgiveness

I am so frustrated. I've had the same loans since 1984-1987. Each $5000.00.(3) One paid off. Balance: $23,000

I can't get ahead. I'm trying to finis my Master's in counseling and cannot due to money. Can't refinance house because loan/debt ratio. I'm stuck with 7.75%. Help. I've contacted public officials and Congressman. Nothing! Just letters saying I have to pay.

To Shelley of TX

Your first sentence states that teachers need to think before majoring in Education "Why would anyone pick an occupation with little earning potential?" How about because SOMEONE has to teach children, therefore SOMEONE has to major in education. So you are saying that no one should sign up to be a teacher because it has such "little earning potential"?

Research your projected major

When deciding a college major, we should do a little research.Why would anyone pick an occupation with little earning potential? Sometimes people think this or that would be an easy cushy job and go for it. Easy courses,easy internship,desk job,no physical demands,poor paying job[which you knew? before you started] then expect help or forgiveness of loans.Or go on for your masters and get even more debt[masters make you feel superior].Then expect unsuperior people to foot the bill.For smart people to make such bad decisions, wow.Should have thought about it more.

loan forgiveness

I beg to differ with some of you as to the benefits of this program. Obviously it is an individualistic thing. In my circumstance, I am 47 years old and have been a cop now for 22 years. I had been going to school for the past 10 years, finally graduated last year. I received about $9000 in Perkins loans, which will be totally wiped off in 4 more years, because I am in law enforcement. I am not paying back one dime over the next 5 years. The debt is reduced by percentages x 5 years. That has been in effect way before this new program came around. As to the Stafford loans, I did the consolidation with the Dept of Education and barely got finalized today. Here are the figures:

I owe about $44,500. They put me on standard repayment of $275 per month for the next 25 years. Ouch. After amortization, in 25 years, my total repayment would be $85,352. Darn near a mortgage type situation. Double the original debt due to the interest and the amortization schedule.

But since I will most likely stay in law enforcement for the next ten years, I shall make the 120 payments of $275 a month. In ten years, I will have paid back $33,000. Therefore, I have reduced my debt load by $52,322 and also saved 15 years of payments. I’ll be 57 and ready to retire.

So all told, I received 53,500 in financial aid over my academic career and will be paying back $33,000. The student financial aid is practically a gift to me in this case.

Disability Discharge

This too is a joke. I have letters from 4 doctors, the VA and Social Security stating that i am disabled. I was denied th discharge because the DOE has its own standard for determing disability. The fact that I have been deemed to be "unemployable" by the VA and SSA has no bearing on the case. Even if you are unable to work, you are still expected to repay the loans.

35 year

perkins federal loan cannot repay what can i do