3 Reasons why Loan Forgiveness won't work for you
“I’m going to Qualify for Loan Forgiveness”
A common statement I hear from people in why they’re waiting to tackle debt is that they’re planning on loan forgiveness 10 years from now. Sound too good to be true? That’s because it is.
Let me be clear- This isn’t my opinion. This is a FACT.
Top 3 Reasons why Loan Forgiveness won’t work for you:
A recent study (Published in 2018) revealed that LESS THAN ONE PERCENT of those who QUALIFIED for loan forgiveness actually received the service. Can you imagine working diligently for TEN years, never missing a payment, dotting every “I”, and crossing every “T” and STILL not receiving the loan forgiveness? I would be devastated. Read the full article HERE.
You could be spending those 10 years it takes to qualify to be making BIGGER payments. Bigger payments means quicker payoff and less money paid in interest over time.
My last and favorite reason. Take responsibility for your action. This one is SO HARD. When we took out debt, we committed to a repayment plan. Some of us did this as late teenagers and some did it in our 40’s. It will never not baffle me that the government finds an 18 year-old responsible enough to take THOUSANDS out in debt at a time, but not responsible enough for a glass of wine. The end game here is MONEY. Of course less than 1% are approved.
The next time you’re tempted by debt forgiveness promotions, keep in mind that you literally WILL NOT get approved (Unless you follow every guideline for 10 years straight AND happen to be one of the lucky 1%). But, your loan provider is going to LOVE your minimum payments those 10 years instead. They are going to love every second of your interest payments. Don’t give them this satisfaction!