6 Reasons Student Loan Forgiveness Might Not Be Worth It


There are some things you’ll need to think about before deciding that getting your student loan forgiven will solve all of your problems. For example, what if you owe more than $57k? Or what if you only have five years left on your repayment plan and want to switch it up? Let’s explore these six reasons why student loan forgiveness might not be worth it in our blog post today!

The Basics

It is worth noting how there are three and a half million individuals currently paying off student loans while roughly 9% of Americans owe college debts. Obviously, this widespread trend makes the idea of student loan forgiveness seem somewhat attractive – if it was available to everyone who had an interest in it.

Sadly though, only two types of students qualify for such relief: those who take out federally subsidized education programs (Direct Subsidized Loans) and those who apply for federally subsidized education (Direct Unsubsidized Loans).


The Student Loan Forgiveness Program

There are many different types of loans you could use, but there is one type that has been approved by the U.S. Department of Education specifically for students attending college.

If you don’t know what kind of government loan to apply for, then you should use Direct Loans Direct PLUS Loans Federal Family Education loans Federal Grad PLUS Loans Parent PLUS Loans Forgiveness under the Direct Loan Program.

You can choose from two options when it comes to your Direct Loans. The first one is the standard 10-year plan, which is at the low end. You can choose to keep this plan or switch to a flexible repayment plan if you qualify.

Depending on your income and resources, you may be able to choose a Pay As You Earn (PAYE) repayment plan. You may be able to pay less than what you’re currently paying. You can also earn a federal income tax credit for those payments

Loan Cancellation

One of the most sought-after types of student loan forgiveness is what is called Cancellation. Essentially, if your financial situation is poor enough and you are eligible to be considered for Forgiveness.

This means that you would stop having to make monthly payments on your loans, and could instead take out new ones. You should always consult with someone who knows what they’re doing when it comes to these types of legal matters because they can advise you on how best to go about receiving payment from the government or other entities who are owed money by you.

One example could be if you were allowed to pay back only what was owned on one’s loan – say all but $200 worth – then you might apply for Cancellation and use that $200 towards paying off debts such as a mortgage or car note while continuing paying monthly instalments on their student loans.


If you’re serious about paying off your student loans quickly, you may want to consider refinancing your loans. You can combine them into one loan and pay off your loan sooner. But, you can’t do this through income-based repayment or forgiveness.

You must consolidate to have all the loan income match and get your loan paid off sooner. Void in Certain Countries If you want to apply for federal student loan forgiveness, you must be in the United States.

However, there are a number of countries where student loan forgiveness does not apply. It varies from country to country, but you should be aware that this will not apply if you have a foreign student loan.


In some cases, debtors may be eligible for bankruptcy and if you get the right score, your student loans can be discharged. Your loan servicer may contact you if they have this information.

However, bankruptcy is an expensive process, and if you’re not sure if your student loans will be discharged, there’s no reason to go bankrupt. A bankruptcy lawyer can help you through the process to determine whether or not you will be eligible.

Bankruptcy is the best way to recover assets, especially if your assets are tied to your student loans. If your student loan debt is below $500, then you don’t have to file for bankruptcy. As you get your debt paid off, your bankruptcy lawyer will need to assist you with the next steps.


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