# What student loan forgiveness programs exist? **URL:** \ **Category:** Factual Questions\ **Created:** [April 17, 2012, 9:02pm UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085 "2012-04-17T21:02:28Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [April 17, 2012, 9:02pm UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/1 "2012-04-17T21:02:28Z")
…and what have been proposed recently? ---
**Author:** ![dolphinboy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dolphinboy/32/330_2.png) [@dolphinboy](https://boards.straightdope.com/u/dolphinboy)\ **Post date:** [April 18, 2012, 3:20am UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/2 "2012-04-18T03:20:14Z")
I always thought that one of the biggest “problems” with student loans is that there are no forgiveness programs. In fact, even if you declare bankruptcy you still owe your student loan until it is paid off or you die. I heard a rumor of a forgiveness program based on some kind of public service… but that was just a rumor. ---
**Author:** ![KarlGrenze](https://avatars.discourse-cdn.com/v4/letter/k/dbc845/32.png) [@KarlGrenze](https://boards.straightdope.com/u/KarlGrenze)\ **Post date:** [April 18, 2012, 11:49am UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/3 "2012-04-18T11:49:06Z")
Some forgiveness programs are based on public service, yes. Veterinarians working in the armed forces have a loan repayment program, based on years of service. Similarly, I think there are some openings for veterinarians within the USDA (and even other non-veterinary positions for other people), where they also offer some sort of loan repayment program. In these cases, it is not a complete forgiveness, but the agencies are saying “Will pay up to X amount per year (usually $20-25K), for up to Y years (usually max 3-5), if you work for us those years (or more)”. These are the programs I’m more familiar due to my profession. As a note, in the United States attending veterinary school is comparable to attending medicine school in terms of costs. And like medicine students, it is very difficult to keep a regular job that would pay expenses while in vet school. ---
**Author:** ![UltraVires](https://avatars.discourse-cdn.com/v4/letter/u/ecccb3/32.png) [@UltraVires](https://boards.straightdope.com/u/UltraVires)\ **Post date:** [April 18, 2012, 12:45pm UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/4 "2012-04-18T12:45:09Z")
> [@dolphinboy](#): > > I heard a rumor of a forgiveness program based on some kind of public service… but that was just a rumor. I don’t think it is a rumor. At least after law school, if you devote 10 years to public service, during that time you pay 10% of your income to repay your student loans and after those ten years, the remaining balance is forgiven tax free. There is also a 25 year plan, during which I believe that you repay 15% of your income. The problem with that currently is that interest will continue to build and the loan will negatively amortize. So with $200k of student loan debt and a meager salary, in 25 years you will have a forgiven principle balance of over a million dollars which at the present time, you must pay taxes on!!! I don’t have any links, but the second program is called Income Repayment Plan or some such thing. ---
**Author:** ![Mithras](https://avatars.discourse-cdn.com/v4/letter/m/f04885/32.png) [@Mithras](https://boards.straightdope.com/u/Mithras)\ **Post date:** [April 18, 2012, 1:11pm UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/5 "2012-04-18T13:11:01Z")
This is the fact sheet for the 10 year public service forgiveness: [http://studentaid.ed.gov/students/attachments/siteresources/factsheet\_PSLF.pdf](http://studentaid.ed.gov/students/attachments/siteresources/factsheet_PSLF.pdf) As you can see, there are a number of ways to qualify for it. I’ve read in the past that you do not have to pay taxes on loans forgiven for public service but that you do for any loans forgiven under the 25 year forgiveness available to everyone. I forget the exact rationale for that, but I believe it had something to do with the latter being closer to a gift. I don’t know what that made the former that it was exempt. ---
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [April 18, 2012, 3:10pm UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/6 "2012-04-18T15:10:38Z")
Nothing on recent proposals? FWIW… my question was prompted by a teacher friend who said he is getting 1/5 of his loans forgiven. He has been at the same school in the same small school system for about 20 years. Apparently more of the students in his school qualify for free or subsidized lunches this year so he qualifies. ---
**Author:** ![KarlGrenze](https://avatars.discourse-cdn.com/v4/letter/k/dbc845/32.png) [@KarlGrenze](https://boards.straightdope.com/u/KarlGrenze)\ **Post date:** [April 18, 2012, 4:52pm UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/7 "2012-04-18T16:52:32Z")
Hey, the USDA thing I posted was from 2-3 years ago, I’m not that old! 😉 I also remember the passing of a similar loan forgiveness or loan repayment program law. The problem then, as now, is the availability of funding. That is, even if veterinarians line up to take those jobs (which many won’t), there wasn’t any money to pay back the large amounts of money owed. I think that was partially solved, though, since a couple of years after I first learned of that I saw the job postings from the USDA. ---
**Author:** ![ComeToTheDarkSideWeHaveCookies](https://avatars.discourse-cdn.com/v4/letter/c/e9bcb4/32.png) [@ComeToTheDarkSideWeHaveCookies](https://boards.straightdope.com/u/ComeToTheDarkSideWeHaveCookies)\ **Post date:** [April 18, 2012, 8:19pm UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/8 "2012-04-18T20:19:13Z")
I just got some email about this yesterday: > **[Student Loan Forgiveness Act of 2012 (2012 - H.R. 4170)](https://www.govtrack.us/congress/bills/112/hr4170)** > > To increase purchasing power, strengthen economic recovery, and restore fairness in financing higher education in the United States through student loan forgiveness, caps on interest rates on Federal student loans, and refinancing opportunities for... > [@](#): > > Official Summary > > The following summary was written by the Congressional Research Service, a nonpartisan arm of the Library of Congress, which serves Congress. GovTrack did not write and has no control over these summaries. > 3/8/2012–Introduced. > Student Loan Forgiveness Act of 2012 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to establish a 10/10 Loan Repayment Plan that allows borrowers of Federal Family Education Loans (FFELs) and Direct Loans (DLs) to limit their monthly payment on such loans to one-twelfth of 10% of the amount by which their adjusted gross income and that of their spouse (if applicable) exceeds 150% of the federal poverty level. Requires the Secretary of Education to determine a borrower’s repayment obligation under that plan on a case-by-case basis if the repayment formula would result in the borrower paying nothing and the borrower is not in deferment due to an economic hardship. Establishes a 10/10 Loan Forgiveness Program that provides FFEL and DL forgiveness to borrowers who, after the date that is 10 years before the date of this Act’s enactment, have made 120 monthly payments under the 10/10 Loan Repayment Plan or under another repayment plan that required them to make payments at least as large as those they would have made under the 10/10 Loan Repayment Plan. Credits the months during which an individual is in deferment due to an economic hardship as months for which payment was made for purposes of the 10/10 Loan Forgiveness Program. Caps the amount of loan forgiveness that the program will provide to individuals who become new borrowers after this Act’s enactment. Caps the interest rate on new DLs at 3.4% Amends the public service employee loan forgiveness program to forgive the DLs of participants who have made 60 (currently, 120) monthly payments on such loans pursuant to specified repayment plans. Includes primary care physicians in medically underserved areas in the public service employee loan forgiveness program. Allows certain borrowers to consolidate their private education loans as Direct Consolidation Loans, provided the private loans were made on or before the date of this Act’s enactment. Limits such borrowers to those who: (1) were students eligible for unsubsidized Stafford loans or PLUS loans under the FFEL or DL programs for their enrollment at an institution of higher education, or would have been had they been enrolled on at least a half-time basis; (2) borrowed at least one private education loan for such enrollment; and (3) have an average adjusted gross income that does not exceed their total education debt. Caps the interest rate on those Direct Consolidation Loans at 3.4% Requires borrowers to apply for such loans within one year of this Act’s enactment. Funds this Act’s programs from funds available for Overseas Contingency Operations. ---
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [April 19, 2012, 11:43am UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/9 "2012-04-19T11:43:00Z")
Looks like it would 1)apply to everyone 2) expand some existing"public service" program and 3) change a primary physician program. ---
**Author:** ![Mithras](https://avatars.discourse-cdn.com/v4/letter/m/f04885/32.png) [@Mithras](https://boards.straightdope.com/u/Mithras)\ **Post date:** [April 19, 2012, 12:48pm UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/10 "2012-04-19T12:48:29Z")
I don’t believe it expands the public service program (which was discussed above). It just shortens it to being forgiven after five years instead of the current ten. Also included is the ability to consolidate private student loans. This would be a pretty big deal for a lot of people. ---
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [April 25, 2012, 11:44am UTC](https://boards.straightdope.com/t/what-student-loan-forgiveness-programs-exist/619085/11 "2012-04-25T11:44:05Z")
Obama is on the campaign trail this week and I’m hearing/seeing references to college loan interest rates. Anything more on actual forgiveness?