For many it’s a passion - an inner draw. That’s what it is/was for my guy. He has 6 figure loans from med school. This isn’t likely to make a dent, but he’s highly considering jobs where the places offer assistance with loans or staying public service for the 10 years, paying according to salary during that time, and the rest is supposed to be forgiven.
3 Likes
If the 5% does apply to undergraduate loans only, the system will be set up to calculate the percentage of the underlying loans in the consolidation that are undergraduate. The repayment amount will be the total of the calculated repayment amount based on the appropriate formula for the percentage that is undergraduate & the percentage that is graduate. I fail to understand how that simplifies repayment, but we’ll see how it actually shakes out when they issue the final rule (which doesn’t have to go through any negotiations or comment period, to my knowledge).
1 Like
I wish they would have cut the interest rates or eliminated them instead.
I really don’t think students who don’t need loans are going to take on loans hoping that they will get an unknown portion forgiven.
5 Likes
You’re a 22 year old who landed an IB job on Wall Street making $100k - $10k loans forgiven.
You’re a 50 year old waitress in a diner making $15/hour - you get nothing.
Makes sense to me.
5 Likes
Do you realize how rare this situation would be?
3 Likes
For anyone who is active on Reddit…I am amazed at the number of posters I’m seeing who successfully paid off their loans over the last few years and are now requesting refunds. Presumably their restored loan balances will qualify for forgiveness.
So current students who took out loans for this coming semester don’t qualify. But, people who are no longer in debt do.
Crazy stuff.
3 Likes
No, they won’t get refunds for paying off their loans in the last few years. There is a narrow refund policy for those who made payments during the loan repayment pause. Those were voluntary payments, so I honestly don’t know how this helps anyone … except for those with loan balances low enough that forgiveness pays them off in full. It’s possible the folks on Reddit are talking about the temporary PSLF deal. If so, yes, some of them are getting refunds. But it’s a completely different situation, and they still had to have qualifying public service employment. The current, temporary relief for PSLF is tied to poor management of that program.
4 Likes
Which part? The underpaid middle-aged waitress or the overpaid young financial analyst, software engineer, or management consultant? There would be thousands in each group.
The part I quoted - the extreme of a 22 year old who landed an IB job on Wall Street… and makes just 100K per year… and has student debt even though they likely went to a top college either full pay or with full needs met (as those top colleges tend to do).
There aren’t thousands of those students out there.
2 Likes
There are many threads on CC of how CS students at almost every type of school are landing great jobs regardless of the prestige.
We also know that big 4 accounting firms hire from numerous schools - not just Ivies.
There are thousands of kids who are landing great jobs at many schools - public and private. The job market has been booming the last few years.
The bottom line is $125k seems extremely generous. Im not sure why the amount is that high.
5 Likes
Ditto, but most students right out of college aren’t making 100+K. There are plenty of salary averages available to be seen out there for every major.
Here’s a google search page for anyone wanting to look at it:
1 Like
True. But the reality is whether it’s $75k or $100k, their career trajectory is going to be high, unlike the person making minimum wage will never get close to six figures regardless of how many years they work.
2 Likes
And that’s why it helps more students if they go to college or trade school. Too many who can’t afford either end up in low wage jobs trying to save for college, then giving up. There’s no reason at all to burden them with so much debt to get a better life. 10-20K is hardly giving them a Golden Ticket.
From the same google page or similar ones it’s easy to see the career trajectory isn’t sky high for most college grads, but it is a living wage - esp if one doesn’t have much debt getting started.
1 Like
- Protect future students and taxpayers by reducing the cost of college and holding schools accountable when they hike up prices. The President championed the largest increase to Pell Grants in over a decade and one of the largest one-time influxes to colleges and universities. To further reduce the cost of college, the President will continue to fight to double the maximum Pell Grant and make community college free. Meanwhile, colleges have an obligation to keep prices reasonable and ensure borrowers get value for their investments, not debt they cannot afford. This Administration has already taken key steps to strengthen accountability, including in areas where the previous Administration weakened rules. The Department of Education is announcing new efforts to ensure student borrowers get value for their college costs.
This was in the White House release. How exactly are they holding colleges accountable for price increases?
4 Likes
“and ensure borrowers get value for their investments, not debt they cannot afford.“ Hmmm. Perhaps colleges should end the degrees that provide the least “value for their investment” .
3 Likes
You know, someone created a thread in the politics section specifically for political postings about the student loan debt forgiveness: http://talk.qa.collegeconfidential.com/t/what-do-you-think-about-student-loan-forgiveness/3617530
4 Likes
I have no interest in engaging in discussion about the topic, but I will provide the information in the White House press release that touches on your question:
The Department has already re-established the enforcement unit in the Office of Federal Student Aid and recently withdrew authorization for the accreditor that oversaw schools responsible for some of the worst for-profit scandals. The agency will also propose to reinstate and improve a rule to hold career programs accountable for leaving their graduates with unaffordable debt. And the Department is announcing new steps to take action against colleges that have contributed to the student debt crisis. These include publishing an annual watch list of the programs with the worst debt levels in the country and requesting institutional improvement plans from colleges with the most concerning debt outcomes that outline how the college intends to bring down debt levels.
5 Likes
My older S got a phone call from his Stafford loan servicer two weeks ago to verify his info and let him know that there are income-based payment plans and possible loan forgiveness.
He works in SV and has six months left on his loans. He had to let the rep down gently; she was so anxious to help him! (We were visiting him in CA and heard his end of the call.)
OTOH, ExpatS will get about half his balance forgiven. Was already on income-based payment because wages in his current overseas location are very low. One of the reasons he has stayed overseas is the high cost of living back here.
H and I were zero EFC kids with Staffords from UG and H’s grad school, plus his grad school Plus loans. Staffords actually made a real dent in our COA, unlike now. Still couldn’t buy a house til we were in our late 30s between student loans, day care and rent in a HCOL area. Both of us were working FT, too.
Personally, I’m glad there’s some relief. Glad my tax dollars can help the next generation get on its feet.
5 Likes
I too am eager to help the next generation, just not necessarily the wealthiest among them. There may be many deserving recipients of loan forgiveness, but those making $125k ( or $250k for married or heads of household) are not among them.
The proposal would have made much more sense with lower income limits.
11 Likes
$250k for married couples.