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Dismissing Student Loans After 20 Years

Started by carbary, July 18, 2015, 09:02:02 pm

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carbary

Does anyone know anything about the new legislation that dismisses student loans after 20 (or 30) years of payment?

TheCollegeInvestor

There are a few student loan repayment programs that can dismiss your student loan debt after making payments of 20 or 25 years - Income-Based Repayment (IBR) and Pay-As-You-Earn (PAYE).

As for the new legislation, President Obama recently proposed changing the way all income-based plans work, merging them all into PAYE and changing the forgiveness amounts as well. Here's a full breakdown of how that looks.

carbary

Thanks for the reply. The way I was reading the article is that it already went into effect for new loans after July 1, 2015 - is that correct, or is it still a proposal?

TheCollegeInvestor

It's still a proposal open for public comment. There hasn't been anything official beyond that. If it does happen, though, it will take place retroactively to all loans after July 1, 2015.