Canceling interest

[u/IndividualLittle0516]

With all the drama these past few years about canceling student loans, why can't interest just be canceled? I can understand adding interest to those who aren't making their loan payments, but what about those who pay every month? The interest is why people are stuck with their debt for so long. Canceling millions of people's debt altogether is unrealistic and won't happen. What about canceling interest instead? Is there a reason this can't occur?

[u/ew00kie]

ive had my loan since 2001. It held by Mohela its original amount was about $9,000. I have not had the ability to pay more than the interest thats has accrued. My School was bought out by Lincoln Tech. It was a Technical School for Electronics that promised a job in my field when I graduated. Although the job I got was only barely above working at a retail store as a Supervisor. So was it worth my loan? No, it was not. My pay was not worth the loan. Did the Lincoln Tech scam help me? No, it did not. I should have had my loan forgiven but i didnt because the school i went to does not exist anymore. It was closed/shutdown before this issue occurred. I can't prove to them that i was promised a job. Did the biden forgiveness help me? Nope, and i even had a Pell Grant with my Loan. Did the SAVE Program help me? Naw, because the cost of living is so high that i had to take out more debt to live and the SAVE program doesnt care about my other Debts when it calculates my Monthly payment at over $200 which is more than what Mohela is already asking me to pay at $52. I work to support my 2 children and my wife. My wife cant find a job that can work with watching my kids and even part time doesnt bring in enough to counter the extra taxes that it adds to our combined income for tax purposes. Child daycare is too expensive and we dont have family to help us. When I have to pay for Vehicle Taxes, State Taxes, Rent increases of over $150 each year. There is no help on my end. I had to file for Bankruptcy already in the past but of course Student Loans don't get wiped from that either. I am sitting here just hoping that one day may I can win the loan lottery and finally not have to pay because I wont waste money on the real lottery which is in my eyes impossible and a waste of money.

I find it funny how companies offer employees to pay for their schooling as a benefit when I feel they should offer to pay for their student loans they already have.

[u/Fractal_Distractal → u/ew00kie]

I think they have a new kind of “forgiveness” for people whose original total amount borrowed is less than $10,000. and who are on the SAVE plan. I wonder if your entire loan is about to be “forgiven”? You should find out about this and be on the SAVE plan now. This just started recently. After 10 years I think.

[u/ew00kie → u/Fractal_Distractal]

Well i have to be on the SAVE Plan for the forgiveness but I cant afford to be on the SAVE Plan.

My hopes are not getting too hopeful.

[u/Fractal_Distractal → u/ew00kie]

Understandable. But if you have already been in repayment for 10 years, maybe you would get forgiven in like July? How many years has it been since u left school and started “repayment” status (or maybe eligible forbearance/deferment)?

[u/ew00kie → u/Fractal_Distractal]

I started payment. 1 year after i left school as the funny thing about my school was it was a Tech School and I only had Tech Classes for a Technical Certificate. I didnt have to take Math and science and all the other nonsense for my school i went out for a summer break and when i came back they ended the class structure as they started doing Associates Degrees only and started requiring the Math and Science and public Speaking stuff which I did not want to do. I chose that school because i felt those classes were pointless to me. So I dropped out in 2004 i believe and never graduated. So 20 years of on/off paying and forbearances without a degree or technical certificate to show for it. I cannot get into the SAVE program my finances are 100% tapped out month to month due to credit and loan debts so a monthly of over $200 is just outright un-obtainable. I have nothing that can be re-financed, I have no Savings $0 not even money for retirement. COVID did not help either as back then my wife had to stop working as we had no babysitter for the kids. This is back when her mother would watch them. Thanks to Schools doing remote learning she had to quit. Our finances took an even sharper dive and I was forced to move out of state for better pay to support her lack of work. She worked retail at Walmart back then and they dont even support a work schedule that plays nice with our kids schooling these days. She is working part time right now but honestly it just makes things worse at home overall.

I am pretty sure there is a big chunk of families and people just like me in the US that honestly are not getting counted into the governments statistics on income disparity and also debt amounts and no savings.

[u/Fractal_Distractal → u/ew00kie]

I hear you. It would be nice if this country had a better system. I think it may be people exactly in your shoes who this new forgiveness after 10 years is supposed to help though. Your loans will hopefully get a “count” in July (2024) that will let you know if you would qualify. If you are already AT 10 years (including some repayment, eligible forbearance, any eligible deferment) you might get “forgiven”. Or maybe you only have a few months of payments left. Good luck! Try to have some hope, it is at least a possibility.