Anyone plan on not paying back student loans?

[Anonymous]

Anonymous wrote:I got forgiveness through PSLF this year. I'd been paying since 2008 and my balance was 2k less than when I started. My plan B if PSLF had continued being so broken (I was notified in 2022 that I had actually completed all the requirements for the program in 2019 and got a refund) was to do a plan default.

I'll get PSLF in 2023-ish, and will have accrued nearly $70k in interest. I pay the minimum every month, but the interest rate is 6.25%, so there's no point in actually trying to make progress.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can someone explain to me who (what jobs) are eligible for loan forgiveness? I assume teachers, but does that also include all federal employees? Is this for federal loans only? Are Parent Plus loans are excluded?

Another dumb question: From what I understand, the repayment plan is based on the person’s salary who has the loan. Does your spouses salary affect your payment amount?

Parent Plus loans are in the parent’s name. In contrast, private loans like Sallie Mae are in the student’s name but co-signed by the parent. Both are icky. But anyway, the Parent would have to be the one working the public service job.

Parent PLUS and private loans are not eligible for PSLF.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I got forgiveness through PSLF this year. I'd been paying since 2008 and my balance was 2k less than when I started. My plan B if PSLF had continued being so broken (I was notified in 2022 that I had actually completed all the requirements for the program in 2019 and got a refund) was to do a plan default.

I'll get PSLF in 2023-ish, and will have accrued nearly $70k in interest. I pay the minimum every month, but the interest rate is 6.25%, so there's no point in actually trying to make progress.

I'll also get PSLF next year, and I think my balance will actually end up more than an I started despite making 10 years of payments because my interest rate is 8.5%, which imho is usurious on the federal government's part.

[Anonymous]

I paid the minimum on a 30 year payment plan and got a nice refund thanks to Biden.

[Anonymous]

OP, your friend is lying. Anyone making the minimum payment "every other month" on their federal loans is getting their wages garnished.

Outside of the pandemic pause, there's no just not paying federal loans and getting away with it. You can go into forbearance for a time but interest will still accrue.

[Anonymous]

Anonymous wrote:I got forgiveness through PSLF this year. I'd been paying since 2008 and my balance was 2k less than when I started. My plan B if PSLF had continued being so broken (I was notified in 2022 that I had actually completed all the requirements for the program in 2019 and got a refund) was to do a plan default.

What does that mean? I thought defaulting on Federal loans gets you nowhere because they can never be discharged?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I got forgiveness through PSLF this year. I'd been paying since 2008 and my balance was 2k less than when I started. My plan B if PSLF had continued being so broken (I was notified in 2022 that I had actually completed all the requirements for the program in 2019 and got a refund) was to do a plan default.

I'll get PSLF in 2023-ish, and will have accrued nearly $70k in interest. I pay the minimum every month, but the interest rate is 6.25%, so there's no point in actually trying to make progress.

I'll also get PSLF next year, and I think my balance will actually end up more than an I started despite making 10 years of payments because my interest rate is 8.5%, which imho is usurious on the federal government's part.

Yeah, I'm the pp you quoted, and what I mean is that I owe $70k more than when I started making payments. It's insane.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I got forgiveness through PSLF this year. I'd been paying since 2008 and my balance was 2k less than when I started. My plan B if PSLF had continued being so broken (I was notified in 2022 that I had actually completed all the requirements for the program in 2019 and got a refund) was to do a plan default.

What does that mean? I thought defaulting on Federal loans gets you nowhere because they can never be discharged?

Yes, I would stop paying and add that money to my retirement. I would ruin my credit and could have a percentage of SS garnished. When I looked at my specific circumstances, that seemed like a better option than paying for thirty years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I got forgiveness through PSLF this year. I'd been paying since 2008 and my balance was 2k less than when I started. My plan B if PSLF had continued being so broken (I was notified in 2022 that I had actually completed all the requirements for the program in 2019 and got a refund) was to do a plan default.

What does that mean? I thought defaulting on Federal loans gets you nowhere because they can never be discharged?

Yes, I would stop paying and add that money to my retirement. I would ruin my credit and could have a percentage of SS garnished. When I looked at my specific circumstances, that seemed like a better option than paying for thirty years.

I thought the Feds come for everything? Meaning they garnish bank accounts, liens on house, tax returns (altho you can get around this), etc.

[Anonymous]

I graduated law school in 2008 with $160K in debt (loans + interest over 3 years + bar loans). My first job as a fed was slightly under $50K. I shared a two bedroom apartment with three other women (I'm a woman also). DH and I married a year later. He had no school debt as his graduate programs were in sectors that paid stipends. (I had no idea such programs existed). My loans were repaid by the end of 2012. I was still a fed 10 years later so I think I would have qualified for PSLF, but I hear the program is a mess so who knows. We lived in really crappy apartments (one had mold, I didn't know mold could grow in apartments) and my commute was 45 minutes to DC (not terrible). I chose an undergrad program based on price - graduating debt free was a priority for me. Maybe my experience was less than that of more expensive colleges.

On the one hand I hear the statistics about the crushing burden of school loans. On the other hand I worked three jobs the summer before college, worked throughout college - I was the only freshman I knew working a 20 hour a week part time job, worked every summer. When I graduated from undergrad a friend told me they had $30K in student loans. We went to the same university. I couldn't imagine how they racked up that much debt, but even still that is very modest compared with some of the horror stories we all hear about. I DO think college costs today are crazy. Maybe I was just lucky?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can someone explain to me who (what jobs) are eligible for loan forgiveness? I assume teachers, but does that also include all federal employees? Is this for federal loans only? Are Parent Plus loans are excluded?

Another dumb question: From what I understand, the repayment plan is based on the person’s salary who has the loan. Does your spouses salary affect your payment amount?

Parent Plus loans are in the parent’s name. In contrast, private loans like Sallie Mae are in the student’s name but co-signed by the parent. Both are icky. But anyway, the Parent would have to be the one working the public service job.

Parent PLUS and private loans are not eligible for PSLF.

According to the feds, Parent PLUS loans are eligible. The terms for a PP loan by itself may make PSLF a bad option (you would repay fully by the time you got forgiveness) but if the parent also holds their own direct loans or FFLE loans all the loans can be consolidated into a direct loan which is eligible for income based repayment options. https://studentaid.gov/help-center/answers/article/are-direct-plus-loans-eligible-for-pslf

[Anonymous]

Anonymous wrote:I graduated law school in 2008 with $160K in debt (loans + interest over 3 years + bar loans). My first job as a fed was slightly under $50K. I shared a two bedroom apartment with three other women (I'm a woman also). DH and I married a year later. He had no school debt as his graduate programs were in sectors that paid stipends. (I had no idea such programs existed). My loans were repaid by the end of 2012. I was still a fed 10 years later so I think I would have qualified for PSLF, but I hear the program is a mess so who knows. We lived in really crappy apartments (one had mold, I didn't know mold could grow in apartments) and my commute was 45 minutes to DC (not terrible). I chose an undergrad program based on price - graduating debt free was a priority for me. Maybe my experience was less than that of more expensive colleges.

On the one hand I hear the statistics about the crushing burden of school loans. On the other hand I worked three jobs the summer before college, worked throughout college - I was the only freshman I knew working a 20 hour a week part time job, worked every summer. When I graduated from undergrad a friend told me they had $30K in student loans. We went to the same university. I couldn't imagine how they racked up that much debt, but even still that is very modest compared with some of the horror stories we all hear about. I DO think college costs today are crazy. Maybe I was just lucky?

Well, universities are ranked just like cars and school districts. Snobbery is abundant.

[Anonymous]

Anonymous wrote:Can someone explain to me who (what jobs) are eligible for loan forgiveness? I assume teachers, but does that also include all federal employees? Is this for federal loans only? Are Parent Plus loans are excluded?

Another dumb question: From what I understand, the repayment plan is based on the person’s salary who has the loan. Does your spouses salary affect your payment amount?

It amazes me that so many people just won't do basic research. You could have gotten the answer with about 10% of the typing by just going to Google instead of asking here.

https://lmgtfy.app/?q=what+jobs+qualify+for+student+loan+forgiveness

[Anonymous]

Anonymous wrote:OP, your friend is lying. Anyone making the minimum payment "every other month" on their federal loans is getting their wages garnished.

Outside of the pandemic pause, there's no just not paying federal loans and getting away with it. You can go into forbearance for a time but interest will still accrue.

Yeah, no. I didn't pay for like over a year right after I graduated college because I couldn't find a real job and didn't understand forbearance. I just totally ignored them.

It took at least 18 months before they started contacting me about how if I didn't set up a payment plan, they'd garnish my wages. I was like good luck, bud. My check from my shitty ass waiter job is like $3.50 most weeks.

I made auto payments of $100 for 12 months and they left me alone. Then the lady sent me info on how to apply for an income-driven payment plan. I did that for a few years after I finally got a real job making decent money.

Then my company outsourced my department and I was out of work. I stopped paying again without contacting them and the loans went into collection. Best thing that ever happened!

I now pay $25/month and I don't care if those asshats ever get all their money.

I was sold a false promise, IMO. Go to college = you get a good job. Yeah, except the economy tanked right when I graduated and all I could find were jobs working in restaurants with people who used to have big jobs before the economy tanked. I applied for every job I could find in my degree field and got rejection after rejection. "Budget cuts, sorry, we'll keep you on file."

I am not unique, either. I have several friends who graduated the same year I did who are in the same boat. Their $20k loans are now in the $40k range and they simply don't care. Minimum payments only and payments are skipped when the money is needed for other things.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, your friend is lying. Anyone making the minimum payment "every other month" on their federal loans is getting their wages garnished.

Outside of the pandemic pause, there's no just not paying federal loans and getting away with it. You can go into forbearance for a time but interest will still accrue.

Yeah, no. I didn't pay for like over a year right after I graduated college because I couldn't find a real job and didn't understand forbearance. I just totally ignored them.

It took at least 18 months before they started contacting me about how if I didn't set up a payment plan, they'd garnish my wages. I was like good luck, bud. My check from my shitty ass waiter job is like $3.50 most weeks.

I made auto payments of $100 for 12 months and they left me alone. Then the lady sent me info on how to apply for an income-driven payment plan. I did that for a few years after I finally got a real job making decent money.

Then my company outsourced my department and I was out of work. I stopped paying again without contacting them and the loans went into collection. Best thing that ever happened!

I now pay $25/month and I don't care if those asshats ever get all their money.

I was sold a false promise, IMO. Go to college = you get a good job. Yeah, except the economy tanked right when I graduated and all I could find were jobs working in restaurants with people who used to have big jobs before the economy tanked. I applied for every job I could find in my degree field and got rejection after rejection. "Budget cuts, sorry, we'll keep you on file."

I am not unique, either. I have several friends who graduated the same year I did who are in the same boat. Their $20k loans are now in the $40k range and they simply don't care. Minimum payments only and payments are skipped when the money is needed for other things.

You are extremely immature and entitled. No one is guaranteed anything. Get off your a$$ and find a job that pays.