Enrollment in federal student loan debt forgiveness programs skyrocketed nearly 40% in the last six months, the U.S. Education Department told The Wall Street Journal, as education costs rise.
The programs—particularly the one revamped by President Barack Obama in 2011, Pay As You Go—forgive federal student loans after borrowers have paid a certain percentage of their income for a certain number of years. They aim to make sure people aren’t prohibited from working in public sector jobs by hefty debt loads or paying loans into retirement, but they could reportedly cost the federal government as much as $14 billion a year.
Despite a sluggish job market, the cost of education has risen to seemingly astronomical rates in recent years, up 6% in 2014 alone. According to the College Board, a “moderate” budget for college topped $44,000 for private institutions and $22,000 for a public university.
At least 1.3 million Americans are enrolled in the program, with $72 billion in debt, leaving government officials scrambling to find ways to reign in the costs of this program.
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5 comments:
Sure,
Go to an over rated over expensive university and get a worthless degree in something useless, and expect me to pay for it....fat chance!
My daughter paid her way through 4 years with scholarships and only $5k in loans. Graduated, and got her job in her field right away at $12.50 an hour in 2006.
No, she didn't default, she paid it off, but those who never stepped foot in a college get paid that much!
Still paying and will continue to pay on money I borrowed. That is what happens when you borrow money YOU PAY IT BACK. I disagree with the fees and various things that have doubled my original amount but as a congressmen told me "it is a monster that may eventually consume itself" Till then I will do what I am suppose to do.
If a loan is discharged the person who got out of paying is required to show the entire amount as an income on their taxes and you have to pay tax on it. When that fact gets noticed you'll hear more screaming
If you can't pay it back, don't borrow it! My son is in college for engineering...he is already planning on how fast he can repay his loans--not try to wiggle out of paying them!
If this passes then I hope they go back and pay me back for my loans that I paid off with my hard earned money.
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