Congress to Forgive $108 Billion in Student Loan Debt
2017 is going to be the first year borrowers may start receiving student loan forgiveness. The programs were set in place in 2007 and the shortest amount of time a borrower can be forgiven is 10 years under the Public Service Loan Forgiveness Program.
Student loans plague a majority of college graduates. Thankfully, The U.S. will forgive at least $108 billion in student debt. This is more than was previously thought would be forgiven. That is about one-third of the $352 billion that was estimated students will take out between 1995 to 2017. The GAO, Government Accountability Office, said in their report that an additional $29 billion in loans would also be discharged for things like permanent disability.
These loans will be discharged in 10 to 20 years. This isn’t some grand gesture by the government, this is simply because these borrowers have gotten enrolled into income-driven repayment plans. This is something that any federal student loan borrower can look into. Not everyone will qualify but it is available to all.
In fact, 2017 is going to be the first year borrowers may start receiving student loan forgiveness. The programs were set in place in 2007 and the shortest amount of time a borrower can be forgiven is 10 years under the Public Service Loan Forgiveness Program. The Public Service Loan Forgiveness Program requires borrowers to work in the public sector and to be in an income-driven repayment plan. After 120 qualified payments, you are up for loan forgiveness making 2017 and following years exciting to see how loan forgiveness will work and it will give hope to new borrowers just now dealing with their own student debt.
That being said it’s tough to say what the future will hold for student loans. The incoming Donald Trump administration are adamant about repealing everything President Obama has worked on during his term. Including making it easier for borrowers who felt defrauded by for-profit colleges to get their loans forgiven. It is all still up in the air as no real plan has been set in place to decide the future of student loan debt.
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