In 2010 I made the most money I’ve ever made (Unfortunately I’m now making $20K less now)… but in 2010 I paid over $15K towards my extreme student debt. At the end of that year I looked at my statement and despite all that money paid my principal balance actually went up by $508.
I’m failing to see the point of paying only to keep my fabulous credit score if I can’t buy anything anyway cause I spend all my money on the loans. Also am shocked there is no tax break since It’s my education I’m paying for.
I have applied for an IBR, and I am considering defaulting. I cannot find any laws or clear guidelines explaining what the lender can legally do if I default, or for how long they can garnish wages etc. This is a last resort, but it’s looking more and more reasonable considering my situation. Do you know where I might find that information?
Also, is it true that all loans are forgiven after 25 years of repayment (at which point I will have paid 400% of my debt and still owe the entire principal?) or is that something that the government could decide to abolish at any time?
Thanks very much!