Have you ever heard of someone asking you to STOP making payments on money owed?
Student loan debt is a hot topic today. The loan forgiveness program sounds like a dream but I found it to be a nightmare (see my post on that here).
This program basically says that you make 120 on time monthly payments and whatever balance is left after that will be forgiven. 120 monthly payments = 10 years. I am working my butt off to pay off my student loans as soon as humanly possible by following Dave Ramsey’s plan. As of today, I’m 5 months in focusing on solely my student loans. I refuse to wait 10 years to be out of debt.
I still make my regular monthly payments of almost $300 which barely covers the interest and I also throw EVERY EXTRA STINKING PENNY at these life-draining loans on top of that. I’ve paid off about 5 of the smaller loans during the last 5 months.
So, yesterday, I get this email from the loan provider and I am completely floored by what they suggested.
Although you are currently making payments on an eligible repayment plan, you will have little or no balance to forgive after making your required payments.
What should I do?
You need to change your repayment plan as soon as possible to ensure you have the highest possible balance to be forgiven.
They want me to pay less now so a higher amount will be forgiven in 10 flipping years?? Are you kidding me?? So they can add tens of thousands of dollars in interest to be paid by the government ten years from now? Last year alone they added over $8,000 IN INTEREST. Could you imagine what that bill will be after ten years of that crap.
Have you had a similar experience with this program? Comment below!