U.S. to forgive at least $108 billion in student debt in coming years
Good news for student loan borrowers burdened with debt: the U.S. is on pace to forgive at least $108 billion in student debt over the next 10-20 years, according to a report from the Government Accountability Office.
Borrowers have loans forgiven after 10-25 years
There’s a catch, though: the $108 billion figure is based on participation in federal student loan repayment programs, which allow students to have their debt forgiven after making a certain number of on-time payments.
Under income-based repayment, the government may forgive unpaid loans after 20-25 years, depending on when the person attended college.
The forgiveness is contingent on the borrower enrolling in the program and making on-time payments for the duration of that term.
The $108 billion that will be forgiven is approximately one-third of the $352 billion in estimated loan volume U.S. students are expected to have taken out between 1995 to 2017, according to the report.
Repayment plans help relieve student debt burden
We’re very encouraged to see more borrowers taking advantage of student loan repayment programs, will can help them lower their payments and get their debt forgiven after a period of time.
Unfortunately, with the incoming Donald Trump administration and the Republican-majority Congress, it’s unclear whether IBR and other repayment plans will continue.
If you’re interested in the program, we recommend enrolling in a plan ASAP in order to avoid hopefully any possible changes made to the program in coming years.
With so many repayment options, we know it can be very difficult to sort out which repayment plan is best for your situation.
That’s why we work with borrowers to help them figure out what plan is best for them and save money on their student loans. We can also help you figure out whether you’re eligible for student loan forgiveness or if refinancing your student loans would be beneficial.
If you’d like to learn how we can help you, give us a call at 1-888-234-3907 or send us a message.