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This exists—income based repayment plans. There are different types [1], but basically you pay a maximum 10% or 15% of your income, and the remaining balance is
by jointpdf 8y ago
This exists—income based repayment plans. There are different types [1], but basically you pay a maximum 10% or 15% of your income, and the remaining balance is discharged after 20 or 25 years. AFAIK, it’s open to everyone—but you have to apply. It would probably help a lot of people avoid default if everyone was auto-enrolled in IBR.
Also, there’s the public service loan forgiveness program (10 yrs public service job -> discharged loan balance).
[1] https://studentaid.ed.gov/sa/repay-loans/understand/plans https://studentaid.ed.gov/sa/repay-loans/understand/plans
- ep103 8y agoCorrect, unfortunately, this is only for federal loans. I'm advocating that this program should be expanded to also apply to private loans, since those are also not dischargable by bankruptcy.
- elliekelly 8y ago> Also, there’s the public service loan forgiveness program (10 yrs public service job -> discharged loan balance). DeVos's administration has only approved 206 borrowers for public service loan forgiveness.[1] [1]https://www.usatoday.com/story/news/nation/2018/12/27/student-loan-debt-department-education-public-service-loan-forgiveness-denial/2366589002/ https://www.usatoday.com/story/news/nation/2018/12/27/studen...