Blog

Browse All Blog Topics

Student Debt Forgiveness Programs Skyrocket

May 6, 2014

by Suada Kolovic

Unless you plan on paying for your college education out-of-pocket, completing the FAFSA and applying for scholarships are essential in your quest for financial aid. But have you considered federal programs that forgive student loan debt almost entirely? It’s an increasingly popular option: According to reports, government officials are trying to rein in federal programs that forgive some student debt, amid rising concerns over the plans’ costs and the possibility they could encourage colleges to push tuition even higher.

The fastest-growing plan requires borrowers to pay 10 percent a year of their discretionary income in monthly installments. The unpaid balances for those working in the public sector or for nonprofits are forgiven after 10 years while those private-sector workers see their debt wiped clear after 20 years. And while there is currently no limit on such debt, the Obama administration has proposed to cap the amount eligible for forgiveness at $57,500 per student. The cost? A report last week from the Brookings Institution estimated that the plan could cost taxpayers $14 billion a year! “Loan forgiveness creates incentives for students to borrow too much to attend college, potentially contributing to rising college prices for everyone,” the study said. The authors went on to recommend the forgiveness provisions to be scrapped entirely. (For more on this story, click here.)

Share your thoughts on federal student debt forgiveness programs in the comments and check out our financial aid section for more information on how to fund your college education.

And remember, there’s no need to rely on expensive student loan options to pay for your college education. For more information on finding free scholarship money for college, conduct a Scholarships.com free college scholarship search today, then apply and win! It’s that easy!

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 

Michelle S  on  5/9/2014 1:01:17 PM commented:

I think this is a great idea and they should stick with it. I had to go back to school because I was stuck to much experience not enough schooling to move up. I am a single parent and working barely keeps up with the bills. Let alone my student loans. At some point I'm sure I'll be able to pay some of it back but honestly if I am obligated to pay all of it I will be in the same boat I'm in now. Barely keeping my head above water. Some people need help most students are single parents or parents struggling to make ends meet. Just trying to get a education and get into a career and support themselves. And technically in the end if it gets paid for by taxes them we are helping pay it as well... And Lynette I will pray for you the best of luck in your journey and for your children...

 on  5/7/2014 7:27:02 PM commented:

Are we selling our son short by sending him to a college we can afford (Public University)? We can borrow and send him to his first choice then reneg on our obligation??? We know life is unfair but this is Nuts.!!

Kiana L  on  5/7/2014 8:56:39 AM commented:

Students that have abundant amounts of debt clearly did not count the cost before borrowing the loans. This program gives hope for the students that were not trained and taught adequately by those leading the way for them in the financial transition from high school to college.

Lynnette W  on  5/6/2014 5:20:20 PM commented:

I am hoping that someone will pass the law on the student loan, because there is a cap on how much you can borrower. Going to a 4 years college coast around $60.000 to $70.000, like myself I am to the limit on borrower from Strafford loan. My graduation date and year was for 09/5/2014 This is not going to happen, because I have no way on how to pay for the rest of my class. Students like me needs help on paying for our schooling. I know that anyone who is reading this will saying, " What about getting a job" I do not mind working, that why I am in school, however I have 2 disable kids that live with me, one 17, and the other 10. Both need me around the house now. when my oldest turn 18, that will take a lots off of me, because he need help the most, my 10 years old need me as well, however, I can still work in the morning. So don't be little me, just pray for me. Just because I don't have any money today, to pay for my school, my life can and will change in the blink of your eye, for the better, because I am God child and he do look out for his children.

Most Shared Articles

College is supposed to be the best four years of your life. Or as one sociology professor claims: "a big four-year orgy." Was college always this fun? History may indicate otherwise, and Lisa Wade highlights a "demographic shift" 300 years ago that changed the college campus landscape and made colleges bastions of sex, booze, and entitlement.

U.S. colleges during the colonial era [...]

0 months ago 1 comments Read More

While you can always increase your chances at landing a scholarship - increasing your community service and extracurricular involvement, having good grades and writing strong essays - winning one isn't always guaranteed...or can it be? According to TIME Money, one way to secure a scholarship is to apply to, and attend a college that guarantees its incoming class free college money. Here [...]

0 months ago 4 comments Read More

A burglar who targeted college apartments in Cobb County is now in jail after Kayla Mesar, a freshman university wrestler threatened and scared him off campus property.

The identified suspect, Amir Williams had allegedly broken into several other college apartments near Life University before entering Mesar's unit through a back unit where her mother had stood. Mesar, who was around [...]

0 months ago 2 comments Read More

In hopes of boosting the local economy, Tennessee state education officials spent roughly $1 million this past year in advertising enticing college dropouts to finish what they started.

The state's partnership with Tennessee Reconnect is just one of several comeback programs established to combat the "nearly 37 million working adolescents nationwide [that] have some college credits [...]

1 months ago 1 comments Read More

College can be expensive, and while some may rely on scholarships, grants, loans or their parents to foot the bill, one Jacksonville woman got creative and sold her urine and positive pregnancy tests on Craigslist for a little extra cash.

Why would anyone ever purchase positive pregnancy tests or urine? The three-months pregnant woman, who chose to remain anonymous, didn't really [...]

1 months ago 3 comments Read More

Teenagers aren't using drugs, alcohol, and tobacco as much as they used to, according to a new national study. Substance use rates have declined significantly and are at their lowest since the 1990s. Despite this trend, researchers caution that there is still high use of marijuana for a certain age group.

The Monitoring the Future study, conducted by U-M's Institute for Social [...]

1 months ago 7 comments Read More

Rather than basically give you 23 birds for the first 7 of the 12 days of Christmas, we've compiled a holiday list of scholarships yule adore...with a head start too! Check out these scholarships that'll last a few days after you enjoy the holidays:

NATA Business Scholarship

[...]

1 months ago 3 comments Read More

The mantle of "College President" is one that includes a lot of responsibility and scrutiny, but for some in the higher ranks, the lucrative pay makes it worth it. According to data released by The Chronicle of Higher Education, some private-college presidents have made over $5.4 million in a single year.

The average annual salary for full-time college/university presidents in 2014 [...]

1 months ago 2 comments Read More

Perhaps your 2017 New Year's Resolution is to earn more free college money - that's our goal for you! 2016 is now coming to an end, and so are these scholarship deadlines, so hurry and apply to these end-of-the-year awards while you still can!

Girls Who Illustrate Awesomeness Scholarship [...]
1 months ago 8 comments Read More