Debt Consolidation and 25 year forgiveness
Date: Thu, 06/23/2011 - 13:09
Debt Consolidation and 25 year forgiveness
I have read that after 25 years of accruing a student loan debt, the debt is eradicated and then the debtor must then pay taxes on that amount.
However, if you consolidate the loan, you lose that. By consolidating the loan, you are starting the clock all over again.
Is this true? Can anything be done re the 25 years? I was not aware of this 25 year forgiveness situation at the time I consolidated (5 years ago). This is not advertised on any Government student loan website. Had I known this, I would not have consolidated.
Thanks in advance for any help.
However, if you consolidate the loan, you lose that. By consolidating the loan, you are starting the clock all over again.
Is this true? Can anything be done re the 25 years? I was not aware of this 25 year forgiveness situation at the time I consolidated (5 years ago). This is not advertised on any Government student loan website. Had I known this, I would not have consolidated.
Thanks in advance for any help.
No...you do not loose the 25 years in repayment forgiveness by c
No...you do not loose the 25 years in repayment forgiveness by consolidating. Someone is giving you bad info....go read the Direct Loan Website.