Student Loans Forgiven!

[Anonymous]

Fully paid off my own loans; couldn’t be happier for OP. It’s a rare case of government functioning to improve people’s lives—so rare that many seem not to know how to respond appropriately it.

Congrats OP; enjoy the freedom!

[Anonymous]

Anonymous wrote:Congrats OP. Some blue collar worker's taxes are paying for your student loans so you can enjoy even more money for yourself.

And some white collar worker is paying some blue collar worker’s SSDI, so what.

[Anonymous]

Congrats OP! DH’s loans were forgiven in 2022 via PSLF. It was so freeing. I’m happy for you!

[Anonymous]

I'm listed on Mohela as 3 payments beyond the 120 required for Public Service Loan Forgiveness, but just waiting for it to finally come through. Buying a house soon and it would be nice to have it forgiven for when we officially do the mortgage application.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Congrats OP. Some blue collar worker's taxes are paying for your student loans so you can enjoy even more money for yourself.

And some white collar worker is paying some blue collar worker’s SSDI, so what.

This is an excellent point.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Mine were forgiven under PSLF in summer of 2022. They were supposed to be forgiven in April of that year, so had 3-4 months of high anxiety waiting for it to happen.

Federal student loans are generally forgiven after 20 years (undergrad loans) or 25 years (graduate school loan) of on-time payments. This has been the law and in the loan documents for decades. It has nothing to do with Biden.

The issue was that the servicers lost track of payment counts or gave bad advice to borrowers about qualifying loans plans, and thus were not applying forgiveness according to the law. In short, the loan servicers were breaking the law and forgiveness was not properly applied until the Biden administration cracked the whip on the servicers.

If you've made more than 20 years of on-time payments, you will receive a refund check from the US government for any amounts you overpaid.

It's criminal that the loan servicers f#cked this up so badly for decades.

For everyone? I don't think so.

I think so. But PSLF forgiveness is after 10 years and the amount forgiven isn't taxable. For regular forgiveness, it is taxable.

The only way someone with only federal undergraduate student loans still has anything left after 20 years is if they were on an income based repayment plan, meaning they have a crap job. I was on a regular repayment plan and my loans were gone before 20 years. Same with my graduate student federal loans. I took the max for 2 years. Gone well before 25 years. So not it does not apply to remotely "everyone" - only people who drug it out somehow.

So people who took on more loans than they could afford to pay back with their jobs? Make me wonder why people take major loans to only make $45K/year. Doesn't really seem very smart thing to do. Yet many do it

Well, someone has to teach your children. My loans are 40k. I teach and make 60k. I am REQUIRED to tend grad school. They do not assist in paying for it but if i want to keep my license to teach, i must do it. That means, more loans. I love teaching but you consider me not smart

They are just miserable and wouldn’t know smart if it hit them on the head. I don’t care how cornball this sounds, loving your job is priceless.

[Anonymous]

Congrats, OP. As a tax paying citizen who paid off six figures of loans on my own, several years early, I congratulate you on finally getting the debt monkey off your back. If you’re anything like most people, you probably paid off your principal and then some. I’m not upset that I didn't make an exorbitant profit off of keeping you indebted forever. The government should be lifting people up, not drowning them in debt, and the fact that anyone needs to take out six figure loans at all in a country as wealthy as ours is a travesty.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Congrats OP. Some blue collar worker's taxes are paying for your student loans so you can enjoy even more money for yourself.

And some white collar worker is paying some blue collar worker’s SSDI, so what.

You are all a little out of touch regarding salaries. Union skilled labor pays in the low six figures. No different than accountants, insurance agents, or other jobs done in an office.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You’re welcome.

-A taxpayer who took personal responsibility for their student debt.

Like I am so pissed off that cars have seat belts, air bags, like wtf...

Huh?

[Anonymous]

I’m interested in this topic, but I’m not sure it’s our path.

36 months more of busting out 3k monthly. And we’ll be done. $99k balance now.

At that point we will be 11.5 years post grad. (Currently 8.5 years post grad).

So I can’t imagine the balances hanging around for another 11 years from today. I think it’s $92k of minimums, more or less. Plus, would we qualify? Plus the tax burden that final year. And what if we’ve placed our bet on it, and the program goes away?

So it feels like we want to finish it out ourselves.

[Anonymous]

Anonymous wrote:I’m interested in this topic, but I’m not sure it’s our path.

36 months more of busting out 3k monthly. And we’ll be done. $99k balance now.

At that point we will be 11.5 years post grad. (Currently 8.5 years post grad).

So I can’t imagine the balances hanging around for another 11 years from today. I think it’s $92k of minimums, more or less. Plus, would we qualify? Plus the tax burden that final year. And what if we’ve placed our bet on it, and the program goes away?

So it feels like we want to finish it out ourselves.

The only bonus is that we could be using excess $2300 / month on investing now, monthly. (3000 monthly minus 700 minimum).

So it’s immediate investing, or delayed investing but a LOT more?

[Anonymous]

Congratulations, OP! I had $375k forgiven but will only admit to it on an anonymous forum since it makes people upset. There was no way in hell I'd have been able to pay them off legitimately however.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m interested in this topic, but I’m not sure it’s our path.

36 months more of busting out 3k monthly. And we’ll be done. $99k balance now.

At that point we will be 11.5 years post grad. (Currently 8.5 years post grad).

So I can’t imagine the balances hanging around for another 11 years from today. I think it’s $92k of minimums, more or less. Plus, would we qualify? Plus the tax burden that final year. And what if we’ve placed our bet on it, and the program goes away?

So it feels like we want to finish it out ourselves.

The only bonus is that we could be using excess $2300 / month on investing now, monthly. (3000 monthly minus 700 minimum).

So it’s immediate investing, or delayed investing but a LOT more?

Doesn’t make sense to wait another 11.5 years for forgiveness in your case. You’ll also have to pay federal and state taxes on the balance forgiven. Assume you have $100K forgiven…you’ll probably need to pony up a solid $25-30K depending on your other income that year.

The only way forgiveness after 20-25 years is “worth it” is if you are truly low income. And even then, those people will not be able to afford the tax bomb.

The only forgiveness worth a damn is PSLF, which has the twin benefits of forgiveness after only 10 years + it’s tax free.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m interested in this topic, but I’m not sure it’s our path.

36 months more of busting out 3k monthly. And we’ll be done. $99k balance now.

At that point we will be 11.5 years post grad. (Currently 8.5 years post grad).

So I can’t imagine the balances hanging around for another 11 years from today. I think it’s $92k of minimums, more or less. Plus, would we qualify? Plus the tax burden that final year. And what if we’ve placed our bet on it, and the program goes away?

So it feels like we want to finish it out ourselves.

The only bonus is that we could be using excess $2300 / month on investing now, monthly. (3000 monthly minus 700 minimum).

So it’s immediate investing, or delayed investing but a LOT more?

Doesn’t make sense to wait another 11.5 years for forgiveness in your case. You’ll also have to pay federal and state taxes on the balance forgiven. Assume you have $100K forgiven…you’ll probably need to pony up a solid $25-30K depending on your other income that year.

The only way forgiveness after 20-25 years is “worth it” is if you are truly low income. And even then, those people will not be able to afford the tax bomb.

The only forgiveness worth a damn is PSLF, which has the twin benefits of forgiveness after only 10 years + it’s tax free.

Not true. If you make $50k out of school (NOT "truly low income"), your salary increases by 5% each year and you have $55k in loans, you would be able to get tens of thousands forgiven by going on the SAVE plan.

[Anonymous]

Also you can get a loan to pay off the "tax bomb" which is much easier to pay off than the full student loan amount.