Is Student Loan Forgiveness from the U. S. government after 20 Years of forbearance a possibility?
October 17, 2010 by admin
Filed under Student loans
Assume that I will have accrued 20 consecutive years of forbearance on my government Student loans somewhere around the year 2020. Specifically 20 consecutive years of financial hardship forbearance. So does that mean once this happens my government Student loans will be forgiven or does the new law only apply to people who have been in 20 years of Repayment. Basically does being in 20 years of forbearance equal being in 20 years of repayment when it comes to the U. S. government forgiving student loans.
Here’s a yahoo news link with information about the new Student loan law.
Forgot to add the link
http://news. yahoo. com/s/mcclatchy/20100326/pl_mcclatchy/3462278
The new bill only applies to loans that are taken out after this June. For older loans the only thing that they are doing is capping your payment at 15% of your income, there is no forgiveness, the government cannot force lenders to just let you not pay them back, remember you owe the lender, not the government. The government awards you the loan, but you took it out from a lender, so even though it is a federal loan you owe the lender, so you owe the bank. This means that it is up to the bank/lender, not the government, to decide if they will forgive your loan after a certain period of time, you will have to contact them.