question about student loans

[the game]

So I was told today during a discussion about student loans that you pay for them for 10 years and after that whatever is left is forgiven. I'm curious if this is true? Can anybody point me to a site that discusses this?

[chazus]

Completely false. Don't bother researching it (at least not that aspect). There is no such thing as 'forgiven'.

[Spectral]

While I can't speak to other nations, that's emphatically not true in the United States.

Source: I can login and make a payment on a student loan for a university I graduated from in 2003.

edit - Apparently there's a fair bit more info than I was aware of. Links downthread!

[flam]

not true, and you cant file for bankruptcy either to try and get out under the loan (in America anyways)

[Deleted]

http://studentaid.ed.gov/repay-loans...public-service

This should answer your questions.

[Animist Primal]

http://studentaid.ed.gov/repay-loans...s/income-based

http://studentaid.ed.gov/repay-loans...s-cancellation

And it is 25 years for regular people, 10 years for public service.

[IRunSoFarAway]

Here's some articles I found that might be somewhat helpful

http://studentaid.ed.gov/repay-loans...can-my-federal
http://www.usatoday.com/story/money/...tions/2776545/

I know nothing about them, though, I've always been under the impression that the only way for them to go away is possibly by filing bankruptcy, or death.

[Animist Primal]

Completely false. Don't bother researching it (at least not that aspect). There is no such thing as 'forgiven'.

While I can't speak to other nations, that's emphatically not true in the United States.

Source: I can login and make a payment on a student loan for a university I graduated from in 2003.

not true, and you cant file for bankruptcy either to try and get out under the loan (in America anyways)

Here's some articles I found that might be somewhat helpful

http://studentaid.ed.gov/repay-loans...can-my-federal
http://www.usatoday.com/story/money/...tions/2776545/

I know nothing about them, though, I've always been under the impression that the only way for them to go away is possibly by filing bankruptcy, or death.

Spread the knowledge of the forgiveness and income based payments far and wide people. Too many college students think they are completely screwed over loans.

[the game]

I honestly don't have a problem paying them back. I'm graduating with an associates in networking next friday and me and my boss were discussing employment afterwards. He said it would be hard to find work in my field with an associates. I should be going for a bachelors degree. My problem with going for the bachelors degree is money related. I'm getting close to caps for things like pell grants so loans would be my soul method of paying for a bachelors degree. I'm trying to look at options.

[chazus]

My problem with going for the bachelors degree is money related. I'm getting close to caps for things like pell grants so loans would be my soul method of paying for a bachelors degree. I'm trying to look at options.

This is kind of how it works. Welcome to every college student ever, pretty much. This is pretty standard process.

And.. yeah.. you should be going for a bachelors.

[Stop Pretending]

As many has stated, you are done when it's paid off, and bankruptcy will not absolve you of student loans.

[chazus]

Spread the knowledge of the forgiveness and income based payments far and wide people. Too many college students think they are completely screwed over loans.

I can't tell if this is sarcasm or not.. There is no "forgiveness" unless you die, or a few select things happen.. none of which are "flake on payments for 10 years"

And IBR is if like.. you have an income of like $3000 a year.

[Spectral]

Spread the knowledge of the forgiveness and income based payments far and wide people. Too many college students think they are completely screwed over loans.

I don't think I'm screwed at all. I just know that I actually do have to pay for the goods that I purchased.

[Animist Primal]

Go look at the links, yes there are stipulations but there is forgiveness after 25 years for regular people and 10 for people in public service.

[Novx]

Go look at the links, yes there are stipulations but there is forgiveness after 25 years for regular people and 10 for people in public service.

That doesn't mean you just can avoid the debt collectors for 25 years and you are in the clear. You understand that...right?

[Saravat]

There IS student loan forgiveness for those who enter public service jobs AND who consistently pay off their student loans for ten consecutive years.

If you intend to enter any form of public service work (and if you aren't sure whether your career qualifies under this category), then research it. It's a real thing.

Also, the person a few posts above me (Chazus) is incorrect. Really, a moderator should try to be a little more careful when speaking - but regardless of who is posting, there is a lot of misinformation floating around here.

Income-based repayment applies across an EXTREMELY broad range of incomes. It's simply scaled to make repayment a bit less painful, but even those who make a comfortable living can qualify.

[Animist Primal]

That doesn't mean you just can avoid the debt collectors for 25 years and you are in the clear. You understand that...right?

Where are you people getting these words from? I never said anything about blowing off your loans. I gave links to the programs, all stipulations included. The guy asked a specific question about loan forgiveness which is a real thing and apparently something too many people don't know about and I gave links to the info.

[chazus]

Keep in mind, it's also 25 years of destroying your credit, creates a taxable income, and a number of other things. Not worth it.

And 'entering a form of public service' means getting a job.. So hopefully you don't already have one, and hopefully you can GET one in public sector.

And IBR is still based off income.. SO if you make a lot you probably dont need it.. and if you make a little, you probably make a few grand a year.

[Celista]

For new borrowers it is 10% of income over 20 years instead of 25, and yes the balance is written off at that time (or 10 years if you enter public service). There is no income cap on IBR.

http://www.finaid.org/calculators/ibr10.phtml

- - - Updated - - -

Keep in mind, it's also 25 years of destroying your credit

Paying your student loans back builds your credit, it doesn't destroy it >.>

[Tinykong]

And IBR is if like.. you have an income of like $3000 a year.

That's not accurate, it's based on family size and the poverty level and your discretionary income.