There used to be a limited set of occupations that would trigger loan forgiveness after so-many years in that job. Certain government jobs. Service jobs. Kept for certain durations.
I can understand that completely. In a sense, it’s the employer who is paying off the loan (or should be.) And in many cases the employer is the government. And I’m OK with that too, given that the jobs are (or used to be) harder to fill and retain. It was a pre-defined perk of the job.
Blanket “forgiveness” as has been attempted in recent years diminishes the point of an employer offering to pay off student loans for certain jobs.
I would double check on that if I were you. I had to file bankruptcy after being hit with over $100,000 in medical bills even after insurance paid their portion following a medical emergency in 2009. Two years later I got an audit role requiring a secret security clearance. I did hold a CPA, and fully disclosed the bankruptcy on the background information form. Generally, in such cases, as long as you are fully forthcoming as to the circumstances surrounding the bankruptcy, the security officer will understand that life happens.
One interesting note on this bill Congress is currently trying to pass - it includes one student loan repayment option called Repayment Assistance Plan that bases the monthly payments on income. After 360 payments on the plan, any balance remaining is forgiven. From what I understand the government would subsidize the interest if your payment didn’t cover the interest amount for a particular month.
What sort of a college degree did such an individual get that he couldn’t pay off his student loans in the time it takes to pay off a mortgage? Either the degree he paid for was worthless, or he way-way-way overpaid, or he just sucks at managing finances.
I suspect that the vast majority of loans would be paid off by then. I have heard of parents taking out PLUS loans after financing their own education with loans though. That might be one way you end up with a balance after that long.
Great question that noone on the Left will touch with a 10 foot poll.
Because it shows true Liberal bias.
Most student loan forgivness benefitiaries are Liberals.
And most Bankrupcy filers are Republicans running some bussiness and NOT being a 55 y. old living in momma’s basement and STILL in school “trying to find himself in life” on someone else’s money.
Common Sense tells me that THAT is what’s going on.
If this were not true Biden would trip all over himself fighting SCOTUS to forgive mortgages and give free education to Veterans who lost life, arms and legs protecting the country.
Show me where he did THAT and Ill appologize to you.
I think that student loans should be given ONLY for the jobs/proffessions that are in need of new graduates, to begin with.
NOT for something that noone will have use for because there is no job market nor need for it.
Why not give loans to students in Trade schools.
It’s a waste to educate someone getting lucrative degrees then have them drive a truck for living.
And THEN forgive their loan on top of that…
What a crazy idea !!!
When federal student loan interest rates are higher than mortgage interest rates something is wrong.
Easy fix, cap student loans interest rates at say between 1-3%. Heck i would all be for zero interest rates for student loans regardless of income or wealth.
Totally different issue than what I was addressing. And if we change the paradigm so that the institution carries the loan, let them set whatever rate they want (including 0% if they want.)
I’d be good with that. I think it has to come with reform too. I think if a college raises tuition more than inflation, they are removed from the federal student loan program.