Student loan forgiveness?

whatthehell

Hello All

I am sure a lot of us have student loans, being a highly educated bunch of gents.

Anyone have any info on student loan forgiveness? Recommendations? I have a good amount, and I am trying to find a way to pay off good ole Sallie Mae as quickly as possible.

Thanks for your replies in advance!

msteinhilber

I know little about student loan forgiveness but from the little I know, I believe there are only programs to wipe out debt for people who become teachers in a ghetto basically. I could be wrong though, because I never looked into student loan forgiveness really. I owe student loan money, a good chunk of it... but I'll just pay it back by making as large of payments as I can and living a frugal life to get out of debt, that's how you get out of debt quickly. As far as forgiveness goes, I don't believe in free handouts and I will be sorely disappointed if the Obama administration caves to some of the demands of people with outrageous student loan debt and reduces or eliminates the debt - even though I'm one with an outrageous amount of debt.

Plantwiz

whatthehell wrote: »

Hello All

I am sure a lot of us have student loans, being a highly educated bunch of gents.

Anyone have any info on student loan forgiveness? Recommendations? I have a good amount, and I am trying to find a way to pay off good ole Sallie Mae as quickly as possible.

Thanks for your replies in advance!

First, why do you think your loans need to be 'forgiven'? If you signed the paperwork, and used the money, what makes you think you should not repay every penny of it?

Second, not all the members here are 'gents'.

Third, several of us never incurred student debt because we worked and paid for school. So, it is completely possible to attend college and pay for 100% of it with money from a job.

Lastly, the best way to pay off your loan is to start by making the payments. Write yourself a monthly budget against your income and put any (or all) of the extra against the student loan (if this is your only debt). Pick up extra jobs and keep chipping away at it until it is all gone. Best advice I can give you (from experience and the people I teach about clearing up their debt) is you signed for it, it is your job to pay it back. Take a little at a time and stay diligent with your goal to repay it.



Larry on The Dave Ramsey Show - YouTube

https://fpuonline.daveramsey.com/modules/fusetalk3/forum/messageview.cfm?catid=26&threadid=346395

Sallie Mae's ****: Supernatural Debt Cancellation & Dave Ramsey

Plantwiz

Article on loan forgiveness:
What President Obama’s Student Loan Forgiveness Plan Means for You | BostInno

from the above link...

The fact that anyone has $200,000 in debt because they went to college is a disheartening reminder that the debate on student loan reform is way overdue. Thankfully President Obama has reignited that conversation by announcing reforms to the federal student loan program, which could help millions of students pay their federal loans back faster. Cue the celebration: get the fireworks, a giant cake, and a new wallet. Preferably one that’s thicker so it can hold all the money you’re going to save. See, there’s even a cute video explaining it all.

Or not. While we applaud the changes, which certainly will help everyone who’s eligible keep better track of their loans and avoid missing payments, only some students will get a benefit that can help lower their interest rate and pay the federal portion of their loans back a little faster. Still, we loathe pointing out a couple sad facts:
•The changes (which are outlined below) don’t apply to private student loans, which are often harder to pay off since they usually have less favorable lending terms and higher interest rates. So if your private debt is your biggest burden, don’t expect any help from Uncle Sam.
•Not everyone with federal loans benefits from the reforms.

According to Obama’s camp, this is the simple version of what you could see change in 2012:
•If you’ve got both a Direct federal loan (a loan taken directly from the government) and a guaranteed federal loan (a similar federal loan except it originated at a bank) you can lower your total cost by combining the loans into a Special Consolidation Loan—it’ll lower your monthly payment on your federal loans that originated at a bank by .25% (but not loans taken directly from the government) . As was the case already, all the loans can be discounted an additional .25% if you enroll in automatic payments from your checking account.
•If you qualify for the income-based repayment program, your payment cap will be lowered from 15% to 10% of your discretionary income and your balance will be waived after 20 years instead of 25.

Inevitable Caveats, Part 1: Who is eligible for the loan consolidation?
•Anyone with both direct loans and guaranteed loans. That means at least one federal loan taken directly from the government and one that originated from a bank.
•Borrowers that aren’t in default.

Inevitable Caveats, Part 2: Who is eligible for the income-based repayment program and its improvements?
•That’s the real question of the day. You’ve got to meet some salary-to-debt ratio requirements. Use this calculator for help.
•Students must have at least one federal loan from no earlier than 2008 and must plan on taking at least one more in 2012 or later.
•Borrowers that aren’t in default.

The inevitable critique of the plan is that it doesn’t address a huge number of students. Did you graduate in 2011 or before and have no intention of borrowing any more money from the government? You don’t qualify for the new income-based repayment program. Had trouble paying back your federal loans and have at least one in default? You don’t qualify for any of these benefits. Did all your federal loans originate at a bank? You can’t consolidate them under this program. And most of all: burdened by private student debt? You’re still out in the cold.

tpatt100

Sheesh no need to be rude but anyways...


The only programs I know of are ones for the Peace Corps which allow you to do public service to "forgive" part of your loans or like already said you work in certain areas or fields.

I know for my loans if you set up auto pay you can get a small reduction in interest from your lender.

If you look at several programs you might be able to find a way to ease the pay off.

stlsmoore

I'm just sucking it up and paying it off as quick as I can. I paid my private loan off which was about 35k in two years by staying with my rents and putting all my extra income towards it; my salary was only 35k at the time. I still need to pay off my federal which is a little less than 12k and I would be making extra payments on it. But my car blew it's engine (Subaru WRX STI) and now I just dropped 5K on that and some go fast parts so I need to build my emergency fund back up before I can start making a dent on my debt again. It sucks but you have to pay to play...I guess

SteveLord

There is no free lunch. Just turns into other people paying for it.

TeKniques

Consolidation is the way to go if you have a lot of loans. One of the great things about student loans is in addition to low interest rates the lenders will typically work with you on a payment plan that works for you. Just make sure you communicate with them; student loans can do a number on your credit if they go into default.

msteinhilber

Hope my first post didn't seem rude, wasn't intending it to be - I'm just a firm believer in digging out of the holes we dig for ourselves. I'm no exception myself, I dug a nice sized hole partly out of impulse and a feeling like I just had to get a degree and I went with an online/classroom hybrid option at a for-profit school and financed the bulk of my tuition and did they ever take me to the bank. Live and learn though, that's the way I look at it. To make my situation worse I went into that assuming a two income household to deal with during repayment - nope, divorced and now I have even more expenses than I had before and only a single income to boot.

I can't complain though, my situation has given me a new outlook on what I need to be happy in life - and it's not material possessions. I have cut my budget big time, and I can still have fun. I no longer drive my Subaru, got rid of that and the associated payment and paid cash for an old 95 Saturn SL1 with 110k miles on the clock. Now I don't have a car payment, $215 a month saved. On top of that, I get 40-43mpg now rather than 18-22mpg I got before - with my driving, that's another $200 or so saved per month. That's $415 a month or about 5k a year additional I can pay towards my student loan debt... a few years of hard work and living frugal and I'll be in pretty darn good shape financially.

tpatt100

Check with your lender for deals. I know my mortgage company offered me a refinance on my home at a lower interest rate and reduced closing costs. My wife was offered a lower interest rate on her car as well. I "think" some lenders are taking a proactive approach to borrowers with decent credit and reliable payment history by offering these deals in the hopes you pay them off sooner rather than later and reduce the chance of a default. Of course they make money off the fees but over all my house payment dropped 225 a month and overall I will save I think 65K off the total on my mortgage.

whatthehell

Thank you all for your feedback. Much appreciated.
I understand that we all have to pay our dues and pay back what we borrow, which is why I have been working for over a decade now and paying back my loans. I have consolidated, and have paid off quite a significant amount, but still have about 25k left. I am definitely paying back my loan, and not letting it go default/delinquent, as it looks like so many are.

There are student loan forgiveness programs for those who are in particular roles (teachers), military, and a couple other roles. I am not sure if people in these roles are looking for a free ride, or maybe they are trying to take advantage of programs that our government offers?

Again, I appreciate the responses and feedback.

ptilsen

To my knowledge it is only public sector positions that have student loan forgiveness options. The main justification there is that they take a relative salary hit by working in the public sector, especially in certain fields.

SteveLord

Military personnel have had student loan repayment upon 8year enlistment or re-enlistments amongst other educational benefits. Not everyone is willing to sign over to Uncle Sam to get them. Especially the types who whine about working a regular 8hr job, 5 days a week in an air conditioned building.....instead a 12hr+ job, 10+ months out of the year in all forms of weather.

But a lot of those, like the military force itself are getting reduced.

higherho

Education should not cost 20,000 + a year. Its a big bubble thats going to pop and when it does you will see our economy tank even further.


EDIT

On topic state and federal jobs have a type of forgiveness program to.

ptilsen

higherho wrote: »

Education should not cost 20,000 + a year. Its a big bubble thats going to pop and when it does you will see our economy tank even further.

Agreed. Not to derail/hijack the thread, but colleges -- public, private, regionally accredited, nationally accredited, easy, hard, online, and B&M a like are charging too much with not enough return and not a high enough quality. I have no problem with the current system of government-run student lending other than that there are virtually no restrictions on who gets money for what. If someone who barely speaks English wants to study at ITT and spend $80K+ on a 4-year degree that is all but worthless in the environment, well, give 'em a loan! If there were higher standards on who could get student loans and for what degrees under what circumstances, things might be very different.

the_Grinch

Have to remember any forgiveness would be for Federal loans only, any private loans you are stuck with (that's what I have). In order to qualify for federal student loan forgiveness you can do the following:

Join the military - $20,000 in federal student loan repayment - If I understand the program correctly, they work with the bank who supplied the Federal loan and pay 1/3 in equal installments for the duration of your enlistment.

Peace Corps - I believe it is $20,000 for them as well

Police Officer - They can get federal student loan forgiveness

Corrections Officer - I believe you have to have been a Corrections Officer for 10 year before you qualify

Nurse - If you are a nurse and work in a low income area hospital, you qualify

I've ultimately learned that education is a scam meant to keep you in the hole. You need to educate yourself on exactly what it is going to cost and what you are signing. Student loans account for 7% of the US GDP, something very wrong with that. Add also to the fact that you have no way out, bankruptcy will not forgive a student loan. If you murdered someone, you could get away without paying back any debts except student loans. It really is a vicious cycle, but there is a light at the end of the tunnel. I've been successfully paying my student loans for 3 years now and hopefully will not take the full 20 years.

The education bubble is going to burst and believe me colleges know it (as I happen to work at a college). People are realizing that spending $100k on an education does not have the return on investment. There will always be a place for Harvard, MIT, Stanford, etc. But beyond that I think you will find most of the other schools that charge $40k a year will be changing their prices very quickly or will no longer exist.

In regards to whether the government should help? If you already have the loans then no you should be on your own. But, for future generations I believe they need to expand federal student loans. My parents made too much for me to get financial aid, but not enough to pay for school. I only qualified for $12k in federal student loans. If I could have paid for my education with low interest federal student loans (2 have 2% interest and 2 have 4% interest) my life would be a lot easier. Should they make money? Most definitely, but 7 to 8 percent variable interest is a bit much. Also, offer some incentives for being timely with your payments. Half a percentage point is nice, but come on you can do better then that. With interest rates at historic lows, why is there no option to refinance student loans? If you can show you pay on time and never missed a payment, no reason why you shouldn't be allowed to refinance and get a better rate. Those are my thoughts anyway...

Tackle

86 months left on my student loans. $500 a month. Been paying on them for over a year. I figure once they're paid off or close to it, I'll get married, buy a house, and have a kid or two.

I might be a little late to the game (Will be 28ish once they're done), but it is the only option currently.

NetworkingStudent

We are facing a new economy, and jobs aren’t plentiful. Students starting off in college and entering the work force must be aware of the jobs that are and aren't available. Also, they must be aware of the jobs that are going unfulfilled. It might be easier to enter the workforce if they used this tactic. Gone are the days were a large number of students went to school and graduated with a degree and instantaneously got hired on in their chosen field after graduating.

Students must be smart and savvy consumers, when choosing on what degree or field to pursue. Also, they need to know their loan totals. I knew most of my loan totals, so how couldn’t you know you were signing a $80,000 dollar loan? I didn’t meet to many people that didn’t speak English as a first language, but I did meet a few were in class just to fill a seat, or it felt that way!!

The biggest problem is that people don’t know about other options, when it comes to schooling and finding a career; I believe that this is a huge problem. For example, how many people would know the difference between regional accredited vs non regionally accredited, if not for this forum? Also, how many would know about WGU, if not for this forum? Being informed has a huge benefit when it comes to your education and career.

erpadmin

Mr. WTH asked about loan forgiveness options, not editorials about the state of student loans debt in the country (shame on us for that...including me since I might as well join in that discussion.)

All of the options presented to Mr. WTH have been presented, for the most part (public service loan forgiveness (PSLF), peace corps, military, etc.) However, the fact that student loans are so readily available to folks, regardless of ability to pay, is the reason why colleges charge 2%-20% more a year. Colleges know this, and for-profit colleges such as University of Phoenix have exploited the student loan teat (though for-profits are certainly not alone in that.)

There does need to be better accountability these loans are doled out, no question, as it's something we're all going to have to contend with as taxpayers. For those who do take out loans (like me), you need to keep in mind that student loan debt, unless you're a quadriplegic, will never go away for you. There's no statute of limitations, and that type of debt is the only one that CAN be collectable for life, again though, unless you're a quadriplegic. A default on student loans is not cool, and one will have to go through a good amount of paperwork to deal with loan rehabilitation which I don't wish on anyone. I personally had to do it, and I wish I hadn't....but I had to to clean up my credit.

The sad reality is the student loan question won't be answered today, or even this year. However, there will need to be some sort of solution that everyone can live with. It can start with the colleges controlling their tuition costs and not depending on the taxpayer to cover the bill coupled with personal responsibility with the student.

But to bring this topic back home, yes, there are a number of options for one to get loan forgiveness. Public service is certainly not a terrible option, given the current state of the economy.

odysseyelite

whatthehell wrote: »

Hello All

I am sure a lot of us have student loans, being a highly educated bunch of gents.

Anyone have any info on student loan forgiveness? Recommendations? I have a good amount, and I am trying to find a way to pay off good ole Sallie Mae as quickly as possible.

Thanks for your replies in advance!

.

OK I get the forgiveness plan for public jobs. Those jobs tend to be underpaid in the first place. You took the loans out, pay them back. Want to pay them back quicker, then give up some luxuries in life...eating out, cable, etc or get another job. You signed a promise note to pay the loans back. What happened to personal responsibility? Why should someone else have to pay the loans for you?

I'm tired of hearing people complain how they have all this debt but can't find the job. First look at the degree you got. Did you get a degree which would allow you to get a job? I know a lot of history majors...guess what they are doing? Serving tables because they don't want to teach history in highschool.

For perspective I have two large student loans (30k) for a BS and MS and credit card debt. I'm no different than anyone else. I've managed to tighten my belt and pay down most credit debt and looking at paying off student loans afterwards.

If you borrowed it, pay it back.

dustinmurphy

odysseyelite wrote: »

.

OK I get the forgiveness plan for public jobs. Those jobs tend to be underpaid in the first place. You took the loans out, pay them back. Want to pay them back quicker, then give up some luxuries in life...eating out, cable, etc or get another job. You signed a promise note to pay the loans back. What happened to personal responsibility? Why should someone else have to pay the loans for you?

I'm tired of hearing people complain how they have all this debt but can't find the job. First look at the degree you got. Did you get a degree which would allow you to get a job? I know a lot of history majors...guess what they are doing? Serving tables because they don't want to teach history in highschool.

For perspective I have two large student loans (30k) for a BS and MS and credit card debt. I'm no different than anyone else. I've managed to tighten my belt and pay down most credit debt and looking at paying off student loans afterwards.

If you borrowed it, pay it back.

I agree with your points here, but then again... there are things that happen between the time someone takes out the loans and the time that it comes to pay them back. For instance, in my situation, I was diagnosed with terminal cancer at the END of my Masters Degree program. Although the doctors have not given me a life expectancy, it's highly possible that I will not be alive long enough to pay them back. I am currently working out a plan with my student loan vendors, which may or may not include forgiveness for some or all of the student loans... I was perfectly healthy when I started... it's possible that if they do not forgive them, my wife will use the $500k of life insurance to pay them back.

I agree that if you take out the loans, you should pay them back... just like home loans and everyone looking for bailouts with their houses... or foreclosing on their house just because they're not worth as much anymore. There are situations where (in my mind) it's acceptable to look for a way out... but for the majority of people, they should just tighten their belt and suck it up. For me, I am struggling to keep a roof over my family's head... and pay the outrageous medical bills (even WITH insurance). I am currently using forbearance...

VAHokie56

odysseyelite wrote: »

.

OK I get the forgiveness plan for public jobs. Those jobs tend to be underpaid in the first place. You took the loans out, pay them back. Want to pay them back quicker, then give up some luxuries in life...eating out, cable, etc or get another job. You signed a promise note to pay the loans back. What happened to personal responsibility? Why should someone else have to pay the loans for you?

I'm tired of hearing people complain how they have all this debt but can't find the job. First look at the degree you got. Did you get a degree which would allow you to get a job? I know a lot of history majors...guess what they are doing? Serving tables because they don't want to teach history in highschool.

For perspective I have two large student loans (30k) for a BS and MS and credit card debt. I'm no different than anyone else. I've managed to tighten my belt and pay down most credit debt and looking at paying off student loans afterwards.

If you borrowed it, pay it back.

yeah this is about right...I am in the same boat and fortunate I have a job that enables me to pay it back. I can feel peoples pain though, for profit schools enable students to get 50k+ debt and plunge them on threw. I never finished my degree at a for profit called ECPI ( saw it was a crap school and ran!) but I recall one class where a teacher was astounded that a student who was 1 month away from graduating with a degree in Network security could not even open a command prompt...they just move these kids threw like an a assembly line and they end up flipping burgs with all that debt. crazy!

So to OP...not many options out there dude.

XiaoTech

I can't believe how much some of these colleges charge. I graduated in 2009. I went to a community college and then dual enrolled/transfer to a four year university and it only put me $30k in debt. And that includes tuition for studying in abroad in Japan, not a cheap country to live in, for one year with no grants/scholarships/etc. At first I thought it would take forever to pay off, but the more I look at my finances now, I think its doable. Just gotta live with mom until it gets paid off. Speeds up the payment process three fold!

whatthehell

dustinmurphy wrote: »

I agree with your points here, but then again... there are things that happen between the time someone takes out the loans and the time that it comes to pay them back. For instance, in my situation, I was diagnosed with terminal cancer at the END of my Masters Degree program. Although the doctors have not given me a life expectancy, it's highly possible that I will not be alive long enough to pay them back. I am currently working out a plan with my student loan vendors, which may or may not include forgiveness for some or all of the student loans... I was perfectly healthy when I started... it's possible that if they do not forgive them, my wife will use the $500k of life insurance to pay them back.

I agree that if you take out the loans, you should pay them back... just like home loans and everyone looking for bailouts with their houses... or foreclosing on their house just because they're not worth as much anymore. There are situations where (in my mind) it's acceptable to look for a way out... but for the majority of people, they should just tighten their belt and suck it up. For me, I am struggling to keep a roof over my family's head... and pay the outrageous medical bills (even WITH insurance). I am currently using forbearance...

Really sorry to hear about this man! Did you get a second opinion? I hope the diagnosis is wrong and you live a long and happy life! Had some relatives who were given bleak outcomes, but they completely outlived them and are doing quite well now. I sincerely wish you the best.

dustinmurphy

whatthehell wrote: »

Really sorry to hear about this man! Did you get a second opinion? I hope the diagnosis is wrong and you live a long and happy life! Had some relatives who were given bleak outcomes, but they completely outlived them and are doing quite well now. I sincerely wish you the best.

There's not much room for a second opinion. They cut out 1.5 feet of my colon... and some of my small intestine to remove the cancer. 3 months later, I had 2 new tumors... I've been doing chemotherapy for the last 9 months. I've seen 3 different oncologists... they all have said the same thing. Like I said... I haven't been given a life expectancy... so I'm just living my life as best I can.... it's possible that I go back to work.. and live for another 15 years. It's also possible that I only have a few years to live. I don't want people to feel sorry for me....

I just wanted to point out that there are certain situations where student loan forgiveness is possible, and a good thing. But, for the most part... if you took the student loans out... you should pay them back.

FinLit

Student loan forgiveness is based on the various reasons it can be forgive only under special circumstances.