Scholarship News

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.

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.

ADVERTISEMENT

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.

Connect with our massive database of millions of college scholarships by conducting a free scholarship search at Scholarships.com. Scholarships.com offers the simplest way to search for, apply to, and win college scholarships. Make your college education affordable or even free, by conducting a free college scholarship search at Scholarships.com.

ADVERTISEMENT

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.

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
On this year’s 27th anniversary of Dr. Martin Luther King, Jr. (MLK) Day in the United States, the national day of service has transformed into an entire MLK Week on college and university campuses around the country to honor the legacy and to continue the work of Dr. King toward greater equality, diversity, and inclusion of all people through nonviolence.

MLK Week Events Guide 2022

January 19, 2022 1:35 PM
by Liz Montenegro
On this year’s 27th anniversary of Dr. Martin Luther King, Jr. (MLK) Day in the United States, the national day of service has transformed into an entire MLK Week on college and university campuses
There are quite a few myths surrounding scholarships. Perhaps you’ve heard the most common misconception: that scholarships are only meant for graduating high school seniors. Let’s debunk this myth today by connecting you with scholarships created for high school freshmen and up.

Scholarships for All High School Students

January 12, 2022 9:56 AM
by Liz Montenegro
There are quite a few myths surrounding scholarships. Perhaps you’ve heard the most common misconception: that scholarships are only meant for graduating high school seniors. Let’s debunk this myth
Are you recognized across your campus and community for your activism driven by your passion for the environment? Channel your fervor for a greener future into funding for college. If you have a desire to make a lasting impact on our world and the track record to prove it, take a look at these scholarships. You can also find a full list of scholarships for environmental activists here.

January Scholarships for Environmental Activists

January 7, 2022 1:32 PM
by Liz Montenegro
Are you recognized across your campus and community for your activism driven by your passion for the environment? Channel your fervor for a greener future into funding for college. If you have a
The New Year promises a fresh beginning. You get to start off with a clean slate and leave last year’s worries behind. As we kick off a new semester, we all want to improve in some way and make this year better than the last.

Students, Make Your 2022 Resolutions Stick

January 5, 2022 12:14 PM
by Liz Montenegro
The New Year promises a fresh beginning. You get to start off with a clean slate and leave last year’s worries behind. As we kick off a new semester, we all want to improve in some way and make this
You’ve made it to your last year of high school- senior year- and graduation is just a few short months away! You are so close to taking that deep sigh of relief and starting the next chapter of your life, but it’s not quite over yet.

Tips for Curing Senioritis

December 30, 2021 1:44 PM
by Liz Montenegro
You’ve made it to your last year of high school- senior year- and graduation is just a few short months away! You are so close to taking that deep sigh of relief and starting the next chapter of your
If you’re a high school student, it’s never too early to start making your list of colleges. As you narrow down your search, the best way to decide on the best fit for you is to step foot on campus, get a feel for the campus culture, and ask the right questions. Do you see yourself studying in a college town or a more urban area? Does a large student body sound exciting, or would you prefer a smaller, more intimate school setting? Since most of the college’s facts can be found online, you will want to find out the “real deal” that only a living, breathing human being can answer, so that you can see how the school’s information is manifested in students’ daily lives.

5 Questions to Ask at Your Next College Tour

December 29, 2021 10:11 AM
by Liz Montenegro
If you’re a high school student, it’s never too early to start making your list of colleges. As you narrow down your search, the best way to decide on the best fit for you is to step foot on campus,
Choosing which college to attend is a huge decision that involves many factors to consider. For a Christian student who is weighing their options, there are quite a few benefits to attending a Christian college. For starters, campus culture is important no matter where you go, but Christian colleges offer a faith-based environment where you can be surrounded by students and staff who share your core values. Campus activities such as chapel and religious services, Bible studies, and extracurriculars offered on Christian campuses are designed to help you grow in your faith.

Featured Christian Scholarship Programs

December 22, 2021 1:47 PM
by Liz Montenegro
Choosing which college to attend is a huge decision that involves many factors to consider. For a Christian student who is weighing their options, there are quite a few benefits to attending a
Are you a twin, a duck caller, or a taller-than-average person? Whatever your niche is, rest assured that there are (most likely) scholarships in existence that match up with your personal interests.

4 Unusual Scholarships You Didn’t Know Existed

December 16, 2021 4:29 PM
by Liz Montenegro
Are you a twin, a duck caller, or a taller-than-average person? Whatever your niche is, rest assured that there are (most likely) scholarships in existence that match up with your personal interests.