<p>Today's Cleveland Plain Dealer had an article entitled, "Burden of Loans Leaves Many Young Borrowers Falling Behind" on the front page. The article high-lighted a newly wed couple who both have student loans. The woman has $66,000 in student loan debt. Her husband is taking graduate classes online so right now his undergrad loans are deferred. Once he graduates he will have at least $89,000 in student loan debt. The article detailed the troubles they are having paying her student loans off. She did not get a job in her major, sports management. The husband is hoping to get a teaching job. Both went to Heidelberg, a small, private school in Ohio. </p>
<p>The articles ends with some ideas for those dealing with student loan debt. I was unaware of a program called Income-Based Repayment that the articles discusses. The PD tells how the wife's debt (federal loans, I don't think her private loans) will be forgiven at the end of a 25 year repayment period and how Obama want to erase debts sooner (20 years). It then goes on to say how the husband's debt can be erased sooner because he will be a teacher in a public-service job. His would be forgiven after 10 years of income based repayment. </p>
<p>Isn't this advocating going to an expensive college that a student can't afford with maximum loans (federal and private are discussed in the article) with the knowledge that after 10 or 20 years of income-based payments your loan can be erased? </p>
<p>Is that fair to the student who chooses a college with finances in mind?
Does anyone else think this is crazy?</p>
<p>There is an income ceiling for that loan forgiveness. If you have very limited income, you can do this. Your loans are then canceled after 25 years assuming your income level continues to be very low. To be honest…I’m not sure it’s practical to live at such a low income level for 25 years just to have your loans canceled. Just my opinion.</p>
<p>They racked up the debt and they should be required to pay it (all) back. What ever happened to people taking pride in following through with a commitment and taking personal responsibility for their choices?</p>
<p>What Thumper said. There’s no such thing as ‘forgiven’. It really means ‘taxpayer pays’ for the poor decisions made by the borrowers as well as their lack of responsibility and some politicians like to use things like this to buy votes. There are even some people who believe they’re ‘entitled’ somehow to not have to pay back what they borrow. </p>
<p>There was another long fairly recent thread on CC about this.</p>
<p>I would be curious to examine the rest of their finances to see if they could pay off those loans sooner. I am not anti-student loan, however, I don’t think it is wise to take out large private student loans for undergrad, ever. This is what the reality talks with your children come in about school selection when it is all said and done. </p>
<p>Having said that, MOST college graduates should be able to pay off the max FEDERAL loans allowed in their undergrad years quite easily in WELL under 10 years…unless of course you NEED a huge house and and expensive car and all the “right” clothing, etc., etc.</p>
<p>I think that the Income-Based Repayment is wonderful in a down economy, yet their needs to be an adjustment made regularly as income improves and the 25 year repayment period needs to stay. However, I think social workers, teachers, and other jobs that are low paying but highly skilled should have loan repayment. Even physicians that work as family practioners in underserved areas could be rewarded, since the taxpayers would benefit from affordable healthcare. Maybe as long as people pay off the principal, then the goevernment could forgive the interest. After all, I think the world needs more teachers and healthcare workers than hedge fund managers, and if we could get our best and brightest to focus on the greater good with fear of renting at the age of 40, that is not a bad thing.</p>
<p>Your loans are cancelled after 25 years if you continuously pay them. You cannot not pay for 24 years and expect them to be forgiven in the 25th year. Even with IBR. Even with loan forgiveness for teachers/policemen/firefighters/public servants, you must make 10 years of consistent loan payments before the loans are forgiven.</p>
<p>Must you also stay in that profession indefinitely? What if you work for the government for 10 years, then go into private practice in the 11th year, are the loans reinstated?</p>
<p>I respectfully disagree with the practice of loan forgiveness. People need to take personal responsibility for their actions. If they signed on for loans, they should have to pay all of it back along with the terms of the loan agreement. They made a deal, an agreement and they should be bound to it or deal with the consequences. </p>
<p>So, if I pay my mortgage faithfully for 25 years, is the gov’t going to forgive my loan and let me walk away from my responsibility? (joking of course).</p>
<p>People want the money at the time of signing the paperwork for the loans. The loan money gets them what they want at that moment in their life. It should be their responsibility to pay up when the time comes–not 10 years worth, not 25 years worth, but the entire amount of the loan agreement.</p>
<p>The loans are only forgiven IF the person’s income level remains VERY low for that whole 25 year period. There is income verification done to requalify for this. I believe it is annually. I’m sorry but I do NOT think it’s worth earning a VERY low wage for 25 years simply so you won’t have to pay your college loans.</p>
<p>I was just surprised the newspaper went in this direction instead of saying not to borrow in the first place. </p>
<p>My D would love to go to the University of Notre Dame and has the stats for it to be possible. She wants to be a teacher. We can’t afford Notre Dame’s tuition since they don’t give merit scholarships and we won’t qualify for financial aid. D didn’t apply to Notre Dame. Perhaps after reading this article, hearing about the debt forgiveness, she might attend her dream school with loans. </p>
<p>Of course there is no guarantee that she’ll find a teaching job.</p>
<p>Since the government took banks out of the federal student loan business ( a good decision, IMHO) it would make sense to forgive loans for public service. After all, we give breaks to homeowners and stockholders, why not put our money behind those people who directly benefit society. Why should our teachers all graduate from Podunk U when they might be able to bring something extra to the classroom? Living where I do, I would love to see high-quality social workers, guidance counselors, teachers and law enforcement.</p>
<p>Why?–Because the value of a person who works one job (teacher, police officer, etc.) isn’t greater than the value of a person who works at any other job (retail, health care, landscaping, construction, etc.).</p>
<p>Linny, any loans she takes beyond the Stafford loans will need to be cosigned by YOU. Are you willing to go into debt with her? If your name is on those loans, YOU will be held responsible for repayment if she can’t repay.</p>
<p>The Stafford loans in total will not cover her costs to attend Notre Dame.</p>
<p>IMHO, yes, though healthcare is included. I truly believe that the government could and should subsidize those public professions that are low paying but benefit society as a whole. I did not choose to go into those professions, and I doubt my S will, but I truly believe that high quality people are needed in the US today. We need to give people a reason to give up a six-figure salary in favor of public service. Opinions, and everyone has them.</p>
<p>Ok, I’m missing something here, how can you NOT have your loans paid off after 25 years?? The max loans that would be eligible would be $27,000, if you have to pay those on time over 25 years to have them “forgiven”, what would be left to be forgiven? $27,000 is roughly the same as a car payment…easily paid off in 5 years? Even someone taking $200,000 for med school-after 25 years that will pretty much be gone, wouldn’t it?</p>