One of his programs — called “income-driven repayment” but nicknamed “Obama student loan forgiveness” — allows borrowers to not make payments when their income falls below a specific threshold, then caps payments as a percentage of total family income. Any debt left over at the end of 25 years is forgiven
And yes, it can be forgiven in bankruptcy for many. Don’t believe what the media tells us.
When I took mine out, which I repaid, I was told that the rules had changed dramatically and that they could not be discharged in a bankruptcy. In fact, they said that most, if not all, the loopholes people used before, name changes, new SSN, etc, were filled and folks couldn’t walk away from them anymore.
But one thing that has them all in an uproar, this is affecting their credit, etc. So, there goes the new Prius, trendy apartment in the latest hipster neighborhood or a mortgage.