The Problem with Federal Loan Forgiveness Programs
Reader Comments
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
35 year
perkins federal loan cannot repay what can i do
Federal Loan Forgiveness Program
Yeah, this new program is a true JOKE! The criteria for the program is unrealistic and there is a high probability that most of us would not benefit nor qualify for this forgiveness. A person must make "120 Consecutive Payments" without any deference. Additionally, he or she must work for an employer that fits there criteria for the duration of this 10 years as well. Tough!!!
Pointless
I work in the child welfare field. I consolidated my loans with Direct loans in order to receive the Loan Forgiveness Program. I am currently on the lowest monthly payment plan because that is all I can afford right now since I just received my MSW a year ago. (Also I just went on a 2 month unpaid maternity leave with the state of IL) Little did I know that you have to be on the highest payment plan for your student loans in order to qualify for the Loan Forgiveness. Isn't the highest payment plan for those who have been in the field longer and have more experience, therefore making more money???? If these people are making more money then most likely they have been out of school longer and already paying on their plans therefore by the time they paid 10 years worth they probably already paid off their loans anyway. In addition, if this is something to help offset the lower paying salaries and higher college tuition, how do they expect that the way to do that is make you pay the highest payment plan there is. Even if I could afford $400 per month in student loans, in 10 years the only thing that would be forgiven is $5,000.00 in interest that the student loan companies would have gained. Students aren't gaining anything from this with the current plan. We're paying to get a higher education and then what we receive in return is debt that causes higher interest rates for your houses, cars, etc. because of the debt to income ratio. I would never suggest to a young person right now to pursue college unless they have fellowships, scholarships, etc. Furthermore this is backed by the fact that my husband has no degree, therefore no debt and I have a Graduate degree and we make the same amount. Not too motivating to him to get a degree!
Broader Help Needed
While it's nice that some attention is being paid to the problems that borrowers face, most programs seem to be targeted to those taking out loans now, rather than those who are currently struggling to support a family and meet debt obligations. A college education is essential for most kinds of employment, and almost everyone that goes to college must borrow money to pay for it. However, not everyone can work in a designated high-need field. Moreover, many, like me, had children to support when we left school, and this makes participating in service-based forgiveness programs much more difficult. Ironically, this fact also stresses our monthly budgets more.
The inability to meet student loan payment obligations doesn't just affect recent graduates. Many things -- divorce, illness, job loss -- pop up over the years, and those who hold and service the loans are quick to offer deferments and forbearances. The problem with these measures is that interest still accrues, making it harder to pay the debt, which makes another deferment/forbearance attractive -- and it becomes a vicious cycle in which borrowers find themselves trapped.
In this economy, many mature professionals find themselves out of work and unable to find more; they face losing their homes and are reluctantly considering bankruptcy... Real, broad-reaching relief for student loan debt is needed now, and is long overdue.
Teacher Loan Forgiveness
I decided to become a teacher and thought the teacher loan forgiveness was an added incentive. I later found out I do not qualify because I had outstanding balance prior to October 1, 1998. I then returned to school for a masters degree thinking well if I can earn more money, I will just make the payments. I consolidated and discovered that too is a joke. As a single parent with daily living expenses, I just can't afford to repay the loans. I have searched resources to only find out Congress said to hell with teachers that took out loans between 1998 and 2003. I have decided to change careers and many others are in the same predicament. So I guess the teacher shortage will become worst.
forgiveness grants
I am sixy years old and I am afraid that I cannot repay my ed debt and I will be retiring in three years. How can I get some help in paying this back without losing my social security the loans. I may not be able to keep my house. I am very concerned
