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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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.

[b]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.[/b]

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. [/quote]

For everyone? I don't think so. [/quote]

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

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. [b]So not it does not apply to remotely "everyone" - only people who drug it out somehow.[/b] [/quote]

LOL I remember when a friend of mine said income-based repayment is for "poor people". It was hilarious.

Fine by me if you think that. I was eligible, participated in IBR and PSLF and saved thousands of dollars that I was instead able to put in my 401k where I earned more in returns than the interest rate on the loans. My loan payments were barely covering interest so still wouldn't have paid off loans by 20 years. Rich people don't turn down tax deductions. I'm not going to turn down lower loan payments. Unless you have a pretty low balance or a very high income, you save money by paying as little as possible and waiting for forgiveness. It's just good common financial sense and the only people insisting you should pay more than you need to do not have your best interests in mind.[/quote]

I wasn't eligible for IBR. And you aren't "rich" if you were eligible. [/quote]

FWIW when my loans were forgiven our family income was around double the area median income. I don't really think of our family as "rich" but we have more money than we need and we don't stress about money. In any case, what you said was "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." That is just false. My loans were only from grad school but the total was less than the max you can get from undergrad. I wasn't "dragging it out" I was participating in a program for which I was eligible, with my six figure good benefits good work/life balance job.[/quote]

If you had less than 57,500 in loans (the undergrad max) and paid on them for 20+ years, AND had anything left over to be "forgiven" - you were not on a standard repayment plan. I did 2 years of grad school, borrowing the federal max at the time, and graduated in 2004, standard repayment. My loans were just paid off, nothing left to forgive. [/quote]

I know. I was on an income based repayment plan. There is no income cap for those plans. I didn't have a "crap job".[/quote]

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