Computational Design Lab

Student loans

Student loans may be the one thing that will make your collegiate dreams possible. Student loan forgiveness is available for federal loans only.

With federal student loans, you have the option to have your loans forgiven after 20 years of school (and after completing 30 units of credit, plus 10 extra units of work). In short, you could have your debt forgiven after 30 years of enrollment, provided that you do not default on the loan.

But that doesn’t make it easy.

Here are the basics you should know to make the most of your student loan forgiveness:

No Loan Repayment

With federal student loans, there is no loan repayment in case of default or bankruptcy. So no matter how much you borrow, you will never have to pay back any of the money you borrowed.

The Exception

If your loan was in default and was in a federal repayment plan and you do have to repay the loan in full, it will likely be discharged. If that is the case, you will have to repay it entirely on your own. However, there are a few states where loan discharge isn’t an option if you fall into that category. For example, if you defaulted on your federal student loans in California or New Jersey, or if you became unable to pay your loans, then your loans will be considered discharged. If that happened, you would have to repay the full amount you borrowed through a private lender or in an installment plan with your loan servicer. The repayment term will vary from state to state. Check with your loan servicer if you’re looking into discharge.

Will my federal student loan payments be forgiven?

If you have federal student loans, you might be eligible for forgiveness on these payments, although repayment periods vary by lender. For example, the standard 10-year repayment period for federal loans is the same for forgiveness.

What if my federal loans aren’t eligible for repayment?

If you haven’t graduated from school and have a full time job, you could qualify for forgiveness of the balance owed. For example, a student without a job and a few months to go in school could use a consolidation loan to pay off the remaining balance. Or, you could use an Income-Based Repayment Plan (IBR) or Pay As You Earn Plan (PAYE). These plans reduce your monthly payments based on your income. There are a few exceptions to these repayment options. If you’re a parent and still have child care responsibilities, you’ll likely qualify for loan forgiveness or discharge of all or some of your student loans.

On Thursday 12 December from 9:00am-5:30pm in the CodeLab (MMCH 403), second-year MSCD students gave final presentations for their Pre-Thesis Research Studio with guest critics Vernelle Noel (Georgia Tech) and Benedikt Grosz (HfG Schwäbisch Gmünd, Germany).

Author: Yixiao Fu
Category: News