Yes, some student loans are being forgiven through various government programs such as Public Service Loan Forgiveness, Income-Driven Repayment Plans, and the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
If you want a detailed response, continue reading
Yes, some student loans are being forgiven through various government programs such as Public Service Loan Forgiveness, Income-Driven Repayment Plans, and the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The Public Service Loan Forgiveness (PSLF) program was created in 2007 and forgives the remaining balance on qualifying federal student loans after borrowers have made 120 qualifying monthly payments while working full-time for a qualifying employer in public service. However, the program has been criticized for its high denial rates and confusing application process.
Income-Driven Repayment Plans allow borrowers to make payments based on their income and family size, with the remaining balance being forgiven after a certain number of years. There are four types of Income-Driven Repayment Plans: Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR).
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March 2020, paused all federal student loan payments and interest until September 30, 2021. Additionally, some borrowers were able to have their loans forgiven if they met certain criteria, such as working in a public service job or being permanently disabled.
As Dave Ramsey, American radio show host and financial advisor, said: “If you’re going to borrow money for school, it should be toward a degree that’s in demand and that you can afford to pay back.” It’s important for students to carefully consider their borrowing options and repayment plans before taking on student loan debt.
Here is a table summarizing the different student loan forgiveness programs:
| Program Name | Qualifications | Forgiveness Amount |
|---|---|---|
| Public Service Loan Forgiveness (PSLF) | Work full-time in public service for at least 10 years while making 120 qualifying payments | Remaining loan balance |
| Income-Based Repayment (IBR) | Must have a high debt-to-income ratio and be paying more than 10% of your income toward student loans | After 20 or 25 years of payments, remaining loan balance |
| Pay As You Earn (PAYE) | Must be a new borrower as of October 1, 2007, and have a high debt-to-income ratio | After 20 years of payments, remaining loan balance |
| Revised Pay As You Earn (REPAYE) | No requirements to qualify | After 20 or 25 years of payments, remaining loan balance |
| Income-Contingent Repayment (ICR) | No requirements to qualify | After 25 years of payments, remaining loan balance |
Video answer to your question
The Supreme Court is considering President Biden’s proposal for debt relief to over 40 million Americans with federal student loans, while six GOP states are fighting against it. College tuition and housing costs have skyrocketed, making it difficult for students to afford higher education, especially for those from middle-class families. Meanwhile, students are struggling with the cost of college, with some forgoing basic necessities like groceries to pay off student loans. While the Republican plan aims to provide better transparency about the costs of college education, critics argue it does not address the underlying problem of college being too expensive.
More answers to your inquiry
Is it really possible to have my federal student loans forgiven or to get help repaying them? The answer: Yes! However, there are very specific eligibility requirements you must meet to qualify for loan forgiveness or receive help with repayment. Loan forgiveness means you don’t have to pay back some or all of your loan.
Biden announced on Wednesday that most federal student loan borrowers will be eligible for some forgiveness: up to $10,000 if you didn’t receive a Pell Grant, which is a type of aid available to low-income undergraduate students, and up to $20,000 if you did.
The Education Department is sending mass notices to borrowers who were approved for student loan forgiveness as a result of alleged school misconduct. Hundreds of thousands of borrowers will not have to pay back their student loans under a group discharge initiative.
With 1 in 5 Americans owing student debt, loan forgiveness can help ease the pain of soaring inflation and economic uncertainty. President Joe Biden’s decision on widespread student loan forgiveness will cancel at least $10,000 in student loan debt for all borrowers earning $125,000 or less per year.
Biden last week announced plans to forgive up to $20,000 in federal student loan debt for Pell Grant recipients and up to $10,000 for others who qualify. The news will provide relief for borrowers at a time when the cost of higher education has surged.
Once your federal student loans are forgiven through one of the existing discharge programs, you can finally exhale and relax those long-burdened shoulders. But after the relief passes, what happens next?
Also people ask
Simply so, Can you really get your student loans forgiven? Answer will be: You can have the balance of your student loan forgiven after 20 or 25 years, depending on when you took out your loan, if you have a federal loan and you’re on an income-based repayment (IBR) plan. All federal student loans are eligible except those that are in default, Parent PLUS loans, and Parent PLUS consolidation loans.
How long before outstanding student loans are forgiven?
Answer will be: The PSLF program forgives the remaining balance on your student loans after you have made 120 qualifying monthly payments (10 years) under a repayment plan while working full-time. This loan applies to any individual employed by a government or nonprofit organization.
Also, Are student loans considered good debt? Student loans possess characteristics of both. Federal student loans are considered good debt because they are an investment in the student’s future, enabling substantial increases in the student’s earning potential. Federal student loans also carry relatively low fixed interest rates and offer flexible repayment options.
Why student loans should not get cancelled?
“Blanket student loan forgiveness could create moral hazard on the part of schools," he says. "Knowing that the students they take in have easy access to money that they will likely not have to repay could motivate schools to accept more students, or offer more programs, even in the absence of value."
Also Know, Can you really get your student loans forgiven?
You can have the balance of your student loan forgiven after 20 or 25 years, depending on when you took out your loan, if you have a federal loan and you’re on an income-based repayment (IBR) plan. All federal student loans are eligible except those that are in default, Parent PLUS loans, and Parent PLUS consolidation loans.
How long before outstanding student loans are forgiven?
The PSLF program forgives the remaining balance on your student loans after you have made 120 qualifying monthly payments (10 years) under a repayment plan while working full-time. This loan applies to any individual employed by a government or nonprofit organization.
Beside this, Are student loans considered good debt?
Response to this: Student loans possess characteristics of both. Federal student loans are considered good debt because they are an investment in the student’s future, enabling substantial increases in the student’s earning potential. Federal student loans also carry relatively low fixed interest rates and offer flexible repayment options.
Simply so, Why student loans should not get cancelled?
As a response to this: “Blanket student loan forgiveness could create moral hazard on the part of schools," he says. "Knowing that the students they take in have easy access to money that they will likely not have to repay could motivate schools to accept more students, or offer more programs, even in the absence of value."