WASHINGTON, D.C. – Your time in college creates a lifetime of memories and for some, a lifetime of debt.
The Wall Street Journal reports the total amount of student loan debt in the U.S. totals $1.26 trillion but relief from that crushing debt appears to be on the way.
The federal government is reportedly planning to forgive at least $108 billion in student debt in the coming years.
It’s due to a sharp increase of students opting for income-based repayments plans — an initiative promoted by the Obama Administration. The plans usually reduce monthly payments by hundreds of dollars and in some cases, forgive any remaining balance after 10 to 20 years.
Critics of the plans say that they’re proving more costly than originally thought. They say the amount of money forgiven could potentially increase with future enrollment.
But don’t expect student debt forgiveness plans to go away anytime soon, President-Elect Donald Trump has proposed excusing balances after 15 years.
Looks like Uncle Sam is ready to forgive and forget.