President Biden's plan to cancel student debts for millions of Americans through the student loan forgiveness program remains blocked in court.
Therefore, the Department of Education will extend the breathing space on federal student loan payments and interest into 2023, the first half.
Here are more updates on the student loan forgiveness plan.
1. Do student loans eventually go away?
It only goes away if you are a part of the Public Service Loan Forgiveness Program.
2. How old are you when student loan is wiped?
If you took loans before the 2006/2007 academic year, your loan will be erased once you turn 65.
But if you took them between the 2006/2007 and 2011/2012 academic years, your student loan will be charge-off 25 years after the first month of April your repayment started.
3. Are student loans cancelled after 30 years?
Your student loan will be erased once you turn 65 If you took loans before the 2006/2007 academic year.
Meanwhile, from 2006/2007 or later, your student loan will be charge-off 25 years after the first April your repayment starts.
4. Do student loans stop at 65?
Unfortunately, the government doesn't forgive student loans and starts drawing Social Security benefits once the borrower retires.
5. What happens if you don't pay your student loans in 10 years?
Your student loan will be defaulted and reported to national credit reporting agencies.
Hence, the student loan forgiveness plan is good for you.
6. Is it smart to not pay student loans? No, it isn't. Defaulted student loans on your credit report could make it harder to buy a car or a house.
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