Student Loan Forgiveness: What You Need to Know

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My son graduated in November 2008 at 19 yrs old had obtained a BS Degree in Digital Art and Design. His student loans are coming due beginning 7/1 at the tune of 788.00 a month. He has yet to find a job, my husband was laid off in Oct. 2008 from his job. I am the only one working for a measly $11 an hour. We called to ask about postponing the repayment and was told they will send us the paperwork and it will cost us $100. I just don't understand this country. My thought was he would be ahead of the kids going to a 4 year college to get their BS because he would have a degree and a couple of years experience. When he began college in Feb 2007 the world was not in such economic devastation. Now, with all the layoffs new Grads can not find any work. I am beginning to think it was not worth it at all. Do you think he should apply for this new income based repayment plan? Or do you have any ideas? His total Student Loan with interest is about $77k.

Lori of FL 6:49PM May 29, 2009

I am very thankful for the Fed student loan and grant programs that made it possible for me to achieve a BS degree, something I had long given up hope of doing......I was in my 50's before I was able to fulfill that dream, and it wouldn't have been possible without these programs.
I am also low-income, and one of those with 40K+ total in loans, but for now, my graduated payback option is comfortably manageable. For me this new IBR option will releive me of even that burden.

Jenell of TX 2:00PM May 26, 2009

It is a shame that the government screws the people they try to better themselves by education. I can't beleive how they are taking advatage of them.I have a granddaughter that graduated from Culanary, has a $52000.0 loan which she says should not be that high. She had One job since graduation but got laid off and now does not have a job. How do they expect them to pay with the economy the way it is now. They don't care, it's political greed.

Dee of OH 9:48PM May 24, 2009

Your friend needs to go to a South Carolina Legal Services legal aid clinic (or whatever legal aid clinic is in her area)and talk to an attorney there who knows social security disability law. These legal services are provided free of charge to low income persons. There used to be a loophole in the bankruptcy code that allowed discharge of student loan debt in bankruptcy if the loan holder was disabled. Even if this is no longer the case your friend should definitely talk to a lawyer who could at least try to get her payments reduced and stop the garnishments. Good luck!

CitizenF of IA 3:07PM April 28, 2009

MY FRIEND HAS BEEN DISABLED FOR 10 YEARS. SHE HAD TAKEN OUT STUDENT LOANS TO GO TO NURSING SCHOOL BUT DUE TO HEALTH AND OTHER PROBLEMSS, SHE HAD TO DROP OUT.
SHE HAS BEEN ON SS DISABILITY FOR A GOOD WHILE. HER ORIGINAL SS DOCTOR CERTIFIED HER AS UNABLE TO WORK. AS A RESULT HER SS IS GARNISHED EACH MONTH. SHR KNOWS SHE OWES THIS MONEY BUT IS STRUGGLING TO KEEP A PLACE TO LIVE, WHICH RENT AND UTILITIES TAKE HER WHOLE CHECK. SHE GETS A SNALL SS FROM HER LATE HUSBAND. THAT HAS TO COVER EVERYTHING EKSE. SHE DOESN'T HAVE HEALTH INSURANCE AND HAD A KIDNEY REMOVED DUE TO CANCER SEVERAL YEARS AGO.
SURELY THERE IS SOMEWHERE SHE CAN GET HELP.

Dorothy Dunlap of SC 6:38PM April 26, 2009

Yeah, and did they tell you that after the 10 year pay off, any out standing balance is then taxed as income for that year?
So lets say your minimum payment to stop your loans from growing is 800 a month, at 15 percent garnishment they take 400, and with the new income based payment plan, lets say they only take 250. Your loan continues to grow, and then you end up with a whoping tax burden due the IRS. And if you cannot pay that in full, you end up paying interest and penalties again.
This is a shell game, not a forgivness program.
What we students need, is the restoration of standard consumer protections, which were systamaticly removed from student loans over a 15 year period by the US Congress. This includes bankruptcy and statute of limitation protections.
For more info, see Www.studentloanjustice.org

macwildstar of WV 9:16PM April 22, 2009