If you’re a millennial drowning in your student loan debt, you could be in luck. A report from the Government Of Accountability office revealed a plan that would relieve over an estimated $108 billion in student debt, which would fall on the tax payers. As the new formula would have loanees pay up to 10 percent of their discretionary income monthly, depending on whether the person works in the public or private sector.
my rent is $1181 a month.
my student loans are $445 a month for the next 12 years.
my auto payment is $229 a month.
i also enjoy eating. https://t.co/sO7xsorF1j
— Kendra James (@KendraJames_) November 28, 2016
Congress approved the plans in the 1990s-2000s, and President Barack Obama has used executive orders to extend the friendly terms to borrowers.The estimated $108 billion in debt forgiveness is almost a third of the $352 billion in the estimated loans that American students are expected to take from 1995 to 2017, according to Fortune.
The GAO estimates that $137 billion of the total will not be paid back. The $108 billion will only cover loans made through the current school year. The overall total could continue to increase as enrollment goes up, while the leftover $29 billion is projected to be written off based on death/disability. Be aware the government is legally allowed to garnish wages and Social Security checks for citizens with defaulted loans.
Millennials pay all the bills people in 1995 did, plus cell/internet, plus rent/food costs 2x, plus student loans, with no increase in wages
— Atticus Grinch (@BostonJerry) November 28, 2016
The loan industry is still profitable, though those margins are dwindling as more and more students go into an income-based program for debt repayment. Hopefully, this doesn’t all change with the Trump administration coming to office next year.
— Nate (@BarstoolNate) November 30, 2016