The roller coaster ride for borrowers enrolled in a key affordable repayment plan continues.
On Monday, the 8th Circuit directed a district court to approve Donald Trump’s proposed settlement with the state of Missouri to eliminate the SAVE student-loan repayment plan.
The plan has been embroiled in a legal back-and-forth for years. Most recently, a district court declined to rule on the proposed settlement, which some advocates and lawmakers saw as a win for borrowers and urged the Department of Education to carry out relief under SAVE.
However, the 8th Circuit’s ruling means that, once approved, the department will move forward with the settlement and require enrolled borrowers to transition to a new plan.
All these changes to student loans is just going to change things so it’s possible to file bankruptcy against them.
Typically it’s not possible to get the loans removed via bankruptcy but a few people have done it.
And I think the courts might start allowing it more if all of the loan agreements are no longer being honored on the side of the lender.
When I took out my loans I was told I had multiple options for repayment and that I could do the public service loan forgiveness program (a 10 year program where you work in a lower paying public job for 10 years, make payments based on income and after 10 years the remaining loan is forgiven).
Which is what I had planned to do.
Now I’m in a situation where my loan payments are 2k a month which I can never afford.
Also I spent as little as possible on my education.
I went to community college and state. I worked full time during my associates and bachelor’s so I only took loans out for tuition. Then I did my masters in another country because it was half the cost. Then I took out living expenses funds to finish up my doctorate. 5 of the 6 years were funded. So I only took out money on the last year.
I owe 110,000. After interest. It’s double. IF I pay 2k a month. If I pay less, that number goes up faster than I could pay it off. Essentially I would never be able to pay it off because it would increase faster than a $500 a month payment. (Even $500 seems high to me).
Buying a house in my lifetime seems impossible. I would struggle even with a car payment.