Student Loan reduced payment and forgiveness
 

Here are a couple of links that may be of use to people with FEDERAL student loans. One of the links allows you to apply for an income based repayment program (IBC). The second link allows you to consolidate your student loans into a direct loan, after which you may also apply for an IBC program. Some of those that consolidate may also be able to apply for the “public service loan forgiveness” (PSLF) (i.e. current members of the military, police, fire fighters etc.), which will forgive the remaining student debt after 120 on time payments. Basically, I spent all morning researching and filling mine out and my payments went from a lot, to nothing for the rest of this year, and those $0 payments count towards the 120 payments for the PSLF. Theoretically I could work at CommutAir for the next 10 years and not have to pay any of my student loans back. Well, provided there aren’t any plans in the works to give us some outstanding wages. I’m pretty sure I have the O’bama administration to thank for this. I’m not saying it’s right or wrong, just letting people know it’s there. I hope this enough to get people started, but feel free if you have questions or need something clarified, like I said I’ve been looking at it all morning.
https://studentloans.gov/myDirectLoan/index.action
Direct Consolidation Loans - Welcome!!!

The public service job has to be full time so I don't believe reserves count

Well, if you're not paying your loans, that means someone else is. And that someone else is a probably a taxpayer.

I'm a taxpayer. Glad to know that I can help you pay off your flight training or whatever it is these loans were for. Its not like I need my money for my own expenses or anything, its much better used to cover you for your lack of effective financial planning.

Whatever happened to personal responsibility, paying back what you signed/said you would pay back?

Woo hoo, personal responsibility. Someone's going to have to pay for this!

Yeah, wasn't intended to start a debate, just letting some struggling pilot's know it's there. Feel free to take the high road and not take advantage of the program. BTW I'm a tax payer too.

I say blame the politicians that put the processes in place instead of the people using what means are afforded them. What Archer is describing is not an ABUSE of the system of using it as it was designed (applied for and granted) rather than what we often see in other federal entitlement programs.

As far as personal responsibility for paying off money that you borrowed.....well that type of responsibility has long been out of favor once it was figured out that the gov't would bail you out for poor financial decisions - just as they bailed out others after exhibiting HUGE failures in proper decision making/risk management.

That's fine and dandy if you're starting with all the information. Young people don't often have this and it's way to easy to say this in our 40s that they are stupid and should not have signed up for a student loan. Borrowing money is generally not the greatest way to go at something, yet we don't want to tell people that they can't achieve their dreams or be pilots, even though we know not everyone can. Lots of people "shield" the information from those that are getting these loans, the institution, the industry, etc. The "machine" is concerned with the flow of people through, not so much if they can pay their loans back. To this extent, these students and their parents are often lied to about their prospects and when told about how awesome it all will be, they happily sign up.

There is no "information out there" that exists that really tells anyone how it really is. Everyone likes to assume this exists, but it's experience that really provides this for us and one person telling a rosy story easily offsets one telling a stinky one. It's ridiculous to blame the person that didn't know better 100%, even they should be held responsible for paying back their loans as much as possible. My solution is to get the loan holders involved. Ensure they meet targets for job placement and pay. If the students don't meet these, take money from the loan holders. I bet they'd fix the problem real fast and not hand out money like candy. They'd probably have a battery of qualification criteria and they'd hold the institutions accountable to some extent by not handing out money for a poorly performing institution. This is what needs to happen if we don't want to constantly run around circles with this problem IMO. I don't think there should be any "free ride" for someone that can't pay back, every attempt should be made, but lets actually address the real problem, not try to solve the effects.

I looked at the public loan repayment (I'm in public service). When you look at the fact that you have to be in public service for 10 years, it's unlikely that you'll still have any debt left, so in a few cases that's a nice bonus of federal service, but it's unlikely to be utilized due to the requirements IMO. The other issue is that I don't think they're lessening the principle amount with the "pay based on income", so you aren't really getting "ahead", it's just allowing you some room to breathe. That's not necessarily going to be a great idea IMO, but if you have gotten yourself in a situation where it's the only option, it's nice to not have to go completely bankrupt.

I'd like to see us actually address the problem. Hold the lenders and institutions accountable for what they are putting out. Lending and borrowing isn't inherently bad, but it's money you don't have as the borrower and it is inherently risky. Due to this, just a little bit of lack of information can significantly skew decisions and unfairly punish people and there are those that will take advantage of people no matter what.

How many of those that are against letting someone reorganize their debt and take advantage of these programs (which generally are not having their loans dismissed) are against letting their airlines file bankruptcy and get bailed out? If it comes down to your job, would you rather the airline go out of business, or screw over some of it's lenders? I know there are plenty from the major-airline side working for airlines that would scream bloody murder if someone was trying to dismiss their loans and obligations, yet they work for companies that do just that.

I'm just not for "well, make them pay it back and throw them in jail and sooner or later everyone will figure it out and stop taking out these loans". No way, someone will always come along to take advantage of the situation and convince new uninformed people to take out the loans. Only if the lenders lose enough money would they be inclined to actually do something about it.

Basically that is what IBC does, gives you room to breath, so you don't have to decide between food or paying your loans. And there is an end in sight, as I believe after 25 years you are done.

There is no way being an airline pilot would count as a public service.

The income based repaymwnt is fine, but if you know anythig at all about interest rates or compounding interest they are going to get their money wvwntually. Don't come *****ing when you have very high payments near the end of your payment cycles to make up for the lower payment initally.

Just pay off your damn loans like a responsible individual. Don't go saying you cant afford it because all the regionals pay about the same and you knew you would have to go that for some time.