Working the system to get your loans forgiven

[amastewa93]

I have about $24K in student loan debt that I pay around $275 per month on (working on paying more to get it paid off sooner).

Anyway, I LOVE what I do for a living and would never think about changing my profession. However, a story in the NY Times I was reading this morning detailed the steps to get your student loans forgiven (through being a public servant). Here is some context:

"Michael Mitchell, a professional musician with debt from graduate school, turned to social work and received a master’s degree in 2006. His diligence in following a federal program’s rules erased his $170,000 student loan debt."

That is AMAZING to me but would you guys change your career that way to get rid of your debt?

[TexasHusker]

I have about $24K in student loan debt that I pay around $275 per month on (working on paying more to get it paid off sooner).

Anyway, I LOVE what I do for a living and would never think about changing my profession. However, a story in the NY Times I was reading this morning detailed the steps to get your student loans forgiven (through being a public servant). Here is some context:

"Michael Mitchell, a professional musician with debt from graduate school, turned to social work and received a master’s degree in 2006. His diligence in following a federal program’s rules erased his $170,000 student loan debt."

That is AMAZING to me but would you guys change your career that way to get rid of your debt?

This loan forgiveness deal is a big driver in why higher education costs are spiraling out of control: XYZ University charged $20,000 a year five years ago, but when they figured out the gubmit would guarantee loans for more, they doubled it to $40K. Student gets the loan for $40K to pay the university, and then the loans are "forgiven" by the gubmit. Schools are raking it in. Your example above is a perfect illustration: Why would a two-year graduate degree cost $170K? What relationship does that price have to the actual 36 hours of classes received? There is no relationship - you have a third party - the gubmit - issuing guaranteed loans for whatever the school wishes to charge. Next year it will be $200K instead of $170K.

Rinse, lather, and repeat.

As for your situation, you just have to run the numbers to see if it's worthwhile. No crime in taking advantage of whatever "cash for clunkers" deal the gubmit is offering out of their utter stupidity and malfeasance.

[rennigade]

My wife works for the feds. I never heard of them paying that much. From what she said people in her group were getting $10k/year in student loans paid off...or maybe every 2 years they take off $10k...not sure. Either way I guess she's the one getting screwed since she has no student loan debt.