With liberal media and liberal teachers affecting students education, a recent poll, reported by the New York Post, shows that half of college students think their loans will be forgiven, which is incorrect.
Millennial calls for a more liberal government that will forgive student loans was one of the leading factors to Obama’s win as well. However, their colleges fail to teach them about student loans, leading to the misconception.
The New York Post reports, “The US Department of Education says that federal direct student loan borrowers can get off the hook if they enter public service jobs for a specified period of time, agree to teach in an underserved area, die or become permanently disabled, or if the school they attended shuts down while they are enrolled or within 120 days after they leave.”
A survey of 500 students by LendEDU showed that 49.8 percent of students believe they will not be responsible for their student loans in the future.
The New York Post reports:
Owing to a serious misconception, almost half of college students recently polled believe they won’t be saddled with student loans soon after graduation.
According to a survey of 500 current college students conducted by LendEDU, a private firm that connects students and their families with student loans and loan refinancing, 49.8 percent believe they would be able to receive federal forgiveness on their student loans after graduation.
This belief is hardly justified, given the limited circumstances in which these loans can actually be forgiven.
The US Department of Education says that federal direct student loan borrowers can get off the hook if they enter public service jobs for a specified period of time, agree to teach in an underserved area, die or become permanently disabled, or if the school they attended shuts down while they are enrolled or within 120 days after they leave.
“The biggest exemption is the Public Service Loan Forgiveness Program, and very few students go into public service,“ said Nate Matherson, who co-founded LendEDU in 2014.
“With maybe 14 percent of the American workforce in a public service job, the actual numbers of those who may qualify for student loan forgiveness or discharge is maybe below 10 percent.
“The fact that many students do not understand this means that they may be significantly underestimating the cost of financing a college education,” he added.
Many students polled said they would rely on financial aid to make up the difference in reduced debt load. So while 90 percent knew of FASFA (Free Application for Federal Student Aid), 84 percent did not know the correct filing deadline for the application.
Mark Stephens is financial aid director at Pace University, where the “sticker price” annual tuition is $42,354 for the 2017-18 academic year, a figure that he says is on the average “about 50 percent discounted” through a combination of gift scholarships, other freebies like Pell Grants, and loans.