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> I have friends who said the pause is approaching a point where it’s more valuable to them than the cancellation at this point. How is this possible?

DiggyJohnson 4y ago
If the amount of accrued interest that's been avoided by the pause is greater than 10k, I presume.
- thwayunion 4y ago
  I get that, of course, but the only paused/forgivable loans were subsidized, which have known and non-predatory interest rates... so that means they accrued hundreds of thousands in student loan debt... my question remains "how?!" I always figured the "x00K in student debt" stories were people who took out a lot of non-subsidized loans and let interest accrue for years.
  - mrep 4y ago
    Can you get those loans for grad school/dental school cause my girlfriends dental schooling was over 100k a year so easy peasy if so.
teg4n_ 4y ago
I guess if it’s simply paused forever instead of forgiven you don’t have to pay tax on the forgiven amount?
dghlsakjg 4y ago
Student loan forgiveness is limited to $10k. Turning off the interest for a few years has no upper bound as to how much it can benefit someone. Someone with large principal amounts can easily see more than $10k of benefit.
bombcar 4y ago
Anyone who was on a repayment plan that cancelled the loans after a certain period (PSLF: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service https://studentaid.gov/manage-loans/forgiveness-cancellation... ) has had the clock ticking even as they've paid nothing during that time; each payment "skipped" is money in the bank. And that doesn't count the people who have paid no interest during the period, the interest amount is gone forever for that time; which could quickly overstep the $10k "forgiveness" that is being talked about.
Forgeties79 4y ago
The money saved on not having to pay interest is not inconsequential and they’ll never have to pay those months. That’s money that never would’ve helped with the loan.

DiggyJohnson 4y ago

If the amount of accrued interest that's been avoided by the pause is greater than 10k, I presume.

thwayunion 4y ago
I get that, of course, but the only paused/forgivable loans were subsidized, which have known and non-predatory interest rates... so that means they accrued hundreds of thousands in student loan debt... my question remains "how?!" I always figured the "x00K in student debt" stories were people who took out a lot of non-subsidized loans and let interest accrue for years.
- mrep 4y ago
  Can you get those loans for grad school/dental school cause my girlfriends dental schooling was over 100k a year so easy peasy if so.

teg4n_ 4y ago

I guess if it’s simply paused forever instead of forgiven you don’t have to pay tax on the forgiven amount?

dghlsakjg 4y ago

Student loan forgiveness is limited to $10k. Turning off the interest for a few years has no upper bound as to how much it can benefit someone. Someone with large principal amounts can easily see more than $10k of benefit.

bombcar 4y ago

Anyone who was on a repayment plan that cancelled the loans after a certain period (PSLF: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service https://studentaid.gov/manage-loans/forgiveness-cancellation... ) has had the clock ticking even as they've paid nothing during that time; each payment "skipped" is money in the bank. And that doesn't count the people who have paid no interest during the period, the interest amount is gone forever for that time; which could quickly overstep the $10k "forgiveness" that is being talked about.

Forgeties79 4y ago

The money saved on not having to pay interest is not inconsequential and they’ll never have to pay those months. That’s money that never would’ve helped with the loan.