Student loan forgiveness for people who actually have been paying their debt down?
October 10, 2012 2:25 PM Subscribe
I feel like I've paid enough interest on my student loan. Do any student-loan forgiveness plans exist for middle-class people who actually pay their bills and are not in default?
posted by anonymous to Work & Money (10 answers total) 4 users marked this as a favorite
Biggest financial mistake of my life - Consolidating $12,400 student loan at 8% back in about 2000. I was buying a house and extra money was tight. I opted for the extended repayment plan, set myself up on autopay, and pretty much forgot about it, letting my finances run on autopilot.
Now we're in 2012 and I review my statement with disgust: Out of $12k borrowed, I've already paid $18k:
- $9,146 in principal (out of 12.4k)
- $8,969 in interest
I still owe $5.4k in principal.
I now have enough money saved up to take the bitter pill and pay the $5.5k but I'd love to see what type of help options exist for people who actually pay. I'm not in default, I'm a middle-class working citizen who has never missed a payment. However, it's not easy to just cough up a check for the $5.5k. Don't options exist for people who are not in default, and who have already paid $18k on a $12k loan?
Yes, this was a mistake. Yes, I was foolish. Yes, I should have stayed on top of my finances - If my greatest financial mistake was paying too much interest on a student loan, I'll take the hit. Please don't preach to me about interest - my question is more about options to settle this debt without having to pay another $5.5k.
(edit: reviewing my statement more closely: if my original principal amount is $12,386 and my total principal paid is $9,146, how can I still have a current principal balance of $5,479? That doesn't make sense to me).