One of the scariest things that can happen is a robocall alerting you to the fact that student loan forgiveness program is on thin ice. It’s such a predictable tale of terror – people were promised a decade ago that if they made payments based on their incomes, the remainder of their debt would be wiped out in a decade.
It seems that the program is on the chopping block and people are in a panic. They entered into these agreements in good faith, executed their end of the bargain over the past decade only to see their balances increase, thanks to unfettered interest rates.
Now, they have no recourse and many will have to start the cycle all over again. Is it time to talk about student loan forgiveness?
Student Loan Forgiveness Horror Stories
Clerical errors that aren’t even your fault can keep you in debt for life if your debt is in the student loan category. The New York Times recently reported a story about an Oregon man named Jed Shafer who discovered- after eight years of his 10-year payment plan- that his loan servicing firm failed to enroll him in the program he asked to be enrolled in.
The $70,000 he’d paid in that time period had not put a dent in his loan principal balance. And he’s not the only one who spent the last decade spinning his wheels.
Even the folks in the correct repayment programs are worrying that they might not be out of the woods yet after announcements of their programs’ probable cancellation.
How Many People Are Affected By Student Loans?
The short answer is almost everyone.
Even if you don’t carry a student loan balance, chances are you know someone who does.But even if you don’t know a single person who carries a student loan…
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