If I understand correctly, being eligible for any larger forgiveness supersedes any active enrollment in SAVE/IDR.
They'll contact you if you meet all the requirements.
Biden unveils student debt relief plan for millions
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If I understand correctly, being eligible for any larger forgiveness supersedes any active enrollment in SAVE/IDR.
They'll contact you if you meet all the requirements.
I've got my fingers crossed. I've been on income based for years and I was on forbearance for quite a bit too. Haven't had the means to make a dent in it
I'm in the same boat with my (now formerly) FFELP loan. Instead of being told about available options by both ACS and Navient, I was simply told to go with forbearance, and my interest just built for a handful of years around the time of the Recession. Been playing catch-up ever since.
You need to switch to SAVE ASAP to get all those forbearances to count as eligible months for forgiveness going forward.
Same boat. Was in forbearance for a decade and finally switched over to save where it finally counts as eligible payments.
OP
OP
I think his free community college proposal was one way of fixing the cost side of the issues, but there wasn't enough support in Congress.
Already on Save. Finally got confirmation this week after applying months ago. Also yeah I was on forebearance for maybe a year or 2(been a while) before the Covid freeze hit which then extended it for the 3 or so years. Was on income based before that.
Included in this is FULL interest forgiveness for anyone enrolled in an income based repayment plan like SAVE that makes below the following income limits:
So anyone whose balance has ballooned over their original student loan principal since repayment started would see all of that interest cleared from their accounts entirely if their reported AGI on their last income taxes fall below those figures.
Expect them to be extremely flexible on hardship related forgiveness as well. If you have any sort of ongoing medical issue that requires regular treatment with any sort of cost attached you will likely be eligible under the hard ship forgiveness.
So anyone whose balance has ballooned over their original student loan principal since repayment started would see all of that interest cleared from their accounts entirely if their reported AGI on their last income taxes fall below those figures.
Expect them to be extremely flexible on hardship related forgiveness as well. If you have any sort of ongoing medical issue that requires regular treatment with any sort of cost attached you will likely be eligible under the hard ship forgiveness.
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I've accrued almost 40,000 dollars in interest over my original student loan amount over the last 20 years due to a decade of being poor to the point of not being able to pay.
I've been working on it sense but it was always going to be a nearly impossible climb. My loan is being reviewed by borrowers defense right now, but should it not be lowered any I'm hoping these new rules help me out at some point.
Will change millions of peoples lives.
I've been working on it sense but it was always going to be a nearly impossible climb. My loan is being reviewed by borrowers defense right now, but should it not be lowered any I'm hoping these new rules help me out at some point.
Will change millions of peoples lives.
I'd have to check. Not really sure, tbh.
I did that last year in anticipation for the previous forgiveness. We all know how that turned out, unfortunately.
I am glad tuition is free and student loans have about a 1% interest here (Sweden). 4 more years and then I am debt free, 27 years after graduating. No point paying it off in advance.
This has been my complaint forever. The current folks in debt need help, but if it was an either/or scenario, I'd rather fix the system than focus on the bandages. I don't believe it has to be one or the other, though, but it seems like almost all effort is focused on the current folks suffering and not fixing the system.
How to fix it? Fuck if I know, but I'm also not in the field of education or governmental spending / regulation.
Then at least you're already under the DoE's radar. That's where the automatic forgiveness has been paying off for the past year or so.
I just hope that the current generation doesn't look at this and expect the same kind of treatment (which is no guarantee at all), so they go ahead and (knowingly) sign up for predatory loans. If anything I'd hope this would increase awareness of the problem and a will to fix it.
Make sure to check the student aid gov link I posted earlier that gives you the breakdown. I'd be shocked if you weren't eligible for some path here. They will be bending over backwards to make folks qualify for stuff like hardship forgiveness
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Have you been in repayment for 20 years? If so your Undergrad loans will be totally forgiven under these new rules. Congrats!
Under these new rules your remaining balance would be forgiven after 20 years of repayment regardless of your current plan
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student loan debt is a fucking crime.
Someday I honestly think everyone should just get their excessive debt they were forced to pay paid back to them. When we have a SCOTUS, president and legislature that allows for it. It's fucking criminal and predatory full stop and it should be made null and void.
Someday I honestly think everyone should just get their excessive debt they were forced to pay paid back to them. When we have a SCOTUS, president and legislature that allows for it. It's fucking criminal and predatory full stop and it should be made null and void.
I mean, all this stuff should apply to any future students going forward as well. As long as it's not gutted, the frameworks still stand.
Aren't most kids these days disillusioned by college which is why private universities are struggling to recruit students?
The labor shortage is pushing American colleges into crisis, with the plunge in enrollment the worst ever recorded
“If I would have gone to college after school, I would be dead broke,” says 19-year-old Daniel Moody. “The type of money we’re making out here, you’re not going to be making that while you’re trying to go to college.”
College enrollment could take a big hit in 2025. Here’s why.
Story at a glance College enrollment numbers have been declining for years, taking a hit during the pandemic. Colleges saw the first bump in enrollment since the&nbs…
thehill.com
Oh, is this really an ongoing thing? Somehow that seems even worse if they don't address the root cause... :(
Perfect. If this gets approved, I'll apply for forbearance until my 20 years hits.
12 more payments then and your balance is totally forgiven. I'd recommend applying for SAVE and opting in to automated reporting to ensure you have the lowest possible payments and fastest road to forgiveness
Don't do that just get in the SAVE plan. You'll need to make payments for the last 10 payments but the SAVE plan will ensure your entire prior payment history will count towards forgiveness regardless of forbearances or missed payments
This is via the formal rule making process detailed in the original legislation passed by Congress. So unless SCOTUS wants to declare the student loan act altogether unconstitutional there will be no overturning this
I'm not American, but something like that here would have saved my house and about 2 years of hell I've been living through the last couple.
Do not let them stop this.
Do not let them stop this.
If it's with federal consolidation they will be looking at accrued interest over original principal not non capitalized interest which is what that $45 you see is
Yep this is correct. Many private loans are eligible for federal consolidation due to temporary eligibility waivers that are still available through the end of this month so make sure to apply before then.
I went to my borrower site and looked at my loans (all federal and never consolidated) and there is an "Original Principal" and an "Unpaid Principal" for each loan. Am I to understand that if the unpaid principal value is higher than the original principal that the difference between those two numbers is going to be cancelled?
Because if that is the case I'm about to get 10k deduction in student loans.
Because if that is the case I'm about to get 10k deduction in student loans.
Still angry that I haven't heard anything yet. My school was on their shitlist.
Then again, thanks to posters here I've got a headstart on SAVE and such, but I don't want to pay for this nearly useless degree from a shit school over the next 30 years.
Then again, thanks to posters here I've got a headstart on SAVE and such, but I don't want to pay for this nearly useless degree from a shit school over the next 30 years.
Wow, if this goes through and I did my math right, I'm going to get almost $27,000 of capitalized interest forgiven. $116k -> 89k.
Three times more than the previous plan for me!
Three times more than the previous plan for me!
So should I not worry about applying for the SAVE plan if this is going to be rolled out? My wife and I have been paying for nearly 20 years, and it would be great to have our interest amounts forgiven.
Am I reading this right - that first bullet point says 20k forgiveness for all borrowers across the board?
Yes for anyone with interest accrued in their loans despite being in repayment. So that 20000 would be up to that amount in retest cancellation regardless of income
If you've been paying for almost 20 years the new rules would see your loans forgiven entirely after 20 years but you should definitely be enrolled in the SAVE plan and opted into the automatic income reporting to make sure you are eligible and processed quickly
How long have you been in repayment? If you are enrolled in SAVE even if the borrowers defense isn't approved (which if the school is on the list it def should) the maximum time you would be required to be in repayment before your loans would be forgiven would be 20 years.
Might be a good idea to call the federal student loan line and follow up on your borrowers defense application just to make sure everything is in order.
If I am a year and half from PSLF forgiveness, is there any chance it will be forgiven early? My current career is in the non-profit, and I'm desperately ready to transition out of it, but feel like I just have to power through another year and half (even though my forgiveness progress hasn't updated since 2022, even though I've submitting all of the follow-up paperwork).
I'm actually not yet. I have my loans currently in deferment. That's what I'm worried about, I haven't even been out of school that long and haven't paid anything back.
I literally found out how exploitative and negligent my school was in the last 6 months of my degree.
Ah ok then yea I'd just follow up and follow through on the borrowers defense cancellation. They've been pretty good about getting those done thus far. How long ago did you submit your claim?
Yeah I have had this view too. But I think its a problem thats going to naturally take longer and far more to change country wide. At this point I am just happy we are attacking half of the problem at all. Thats tremendous progress and I don't really want to dislike it. We definitely need to look into the root of the problem instead of 'fixing' the outcome because thats ass-backwards, but I also understand how they are probably approaching it from a selfish "this helps elections" standpoint as well.
Its imperfect, but its progress. Private School tuition is approaching 6 figures per year in some extreme cases. This is going to be HARD to address. I don't even really know where you start.
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Just a FYI, the deferment time should count towards the 20 years.