There's been a bit of news lately on the plan to cancel student loan debt, especially after the United States Supreme Court ruled that the President has no authority to cancel the debt without Congressional action.
What are your thoughts? Are you in favor of canceling debt? Against it?
Recently, the New York Times came under fire for suggesting that "death" is a way to cancel student debt. From a legal and contractual perspective, if a student loan borrower passes and there is no co-signer on the debt, then the debt is eliminated — subject to the borrower's estate having no money. (Note: neither the article nor Shawn & George are suggesting anyone hurt themselves to avoid paying back student loans.)
Some of the other ways to tackle student loan debt:
- Income-Driven Repayment plans (IDR)
- Public Service Loan Forgiveness (PSLF)
- Bankruptcy (a better option after input from the US Dept of Education)
- Consolidating the loans
- Forbearance plans
One other way to tackle student loan debt is to save money for college, and also explore scholarships.
Remember, we're now two full weeks into the Crushing Debt No Spend Challenge. How are you doing? What have you learned about yourself, and about your spending habits?
Let us know if you enjoy this episode and, if so, please share it with your friends!