The Problem with Federal Loan Forgiveness Programs

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its had when you have four kids and really no body to help out with the kids while you go to school bills get behide but you have to keep on pushing for your kids and this would help out with all my problems

etosha starke of FL 10:25AM November 17, 2011

Here we have equity and inequity simultaneously. What gives?

SK of CA 2:51AM September 30, 2010

I have been trying to find the best blogs for over a day now. And I think I found it today. How lucky I am that I read one of your articles. Keep posting a very interesting article.

personal loans of NY 10:38PM February 01, 2010

I was reading the following from ed site. Please tell me this isnt true.
"IMPORTANT NOTE: The Public Service Loan Forgiveness Program provides for forgiveness of the remaining balance of a borrower’s eligible loans after the borrower has made 120 payments on those loans. In general, only borrowers who are making reduced monthly payments through the Direct Loan Income Contingent or Income Based repayment plans will have a remaining balance after making 120 payments on a loan."
I interpret this to mean that essentially any alternative repayment wont count towards loan forgiveness. One must make a payment equal to the standard plan . It looks like this plan is a trojan horse where dept of ed gets people to pay through ibr or icr plans and then tells you 10 years later too bad you should have read the fine print. no loan forgiveness for you

Mark of PA 8:20PM November 15, 2009

Please give me a name in the 'Big House', not one of our little Rep's. I need to know who is in charge of Student Loans from our Govt. Surely, there is a top guy--or I'm, just going to go to the First Lady . If it is Robert Shireman, Director of the Project of Student Loans, please tell me his full address. Sick, Sick, Sick, of the whole mess!!! JM of Texas

judith A. Moore-Hulsey of TX 3:19PM November 13, 2009

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?

Need loan forgiveness of GA 5:02PM June 24, 2009

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.

Micky of DC 9:36AM June 18, 2009

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...

Dissappointed in NJ of NJ 11:52AM June 03, 2009

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.

molly rainbow of VA 12:01PM May 13, 2009

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.

Laurie of OH 3:06PM May 03, 2009