50% Of College Students Believe Their Student Loans Will Be Forgiven By Federal Government

Tyler Durden's picture

LendEDU, a private firm that connects students and their families with student loans and loan refinancing, has finally revealed a clue that helps us better understand the mystery of why so many college students across the country have become so comfortable haphazardly taking out $100s of thousands of dollars in student loans to  fund their degrees in anthropology.  According to a survey of 500 current college students conducted by LendEDU, apparently 49.8% of America's entitled youth is convinced that the federal government will simply forgive their student loans upon graduation...call it a nice little taxpayer funded graduation gift.

Of course, as the US Department of Education points out, only a select few students who actually enter into public service jobs, teach in underserved areas or attend schools that shutdown within 120 days of their graduation actually qualify for federal loan forgiveness.

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.



Of course, maybe these students are just planning on never getting a job after college and thus relying on Obama's executive actions on "income-driven repayment" (IDR) plans that would repay a portion of their loans if they fail to hit certain income thresholds (see report entitled "Federal Student Loans:  Education Needs to Improve Its Income Driven Repayment Plan Budget Estimates" from the Government Accountability Office).  In this scenario, the student loans of these 50% of college students would, in fact, fall into the $137 billion bucket that the GAO figures Obama saddled on the backs of taxpayers through his unilateral executive action.   

For the fiscal year 2017 budget, the U.S. Department of Education (Education) estimates that all federally issued Direct Loans in Income-Driven Repayment (IDR) plans will have government costs of $74 billion, higher than previous budget estimates. IDR plans are designed to help ease student debt burden by setting loan payments as a percentage of borrower income, extending repayment periods from the standard 10 years to up to 25 years, and forgiving remaining balances at the end of that period. While actual costs cannot be known until borrowers repay their loans, GAO found that current IDR plan budget estimates are more than double what was originally expected for loans made in fiscal years 2009 through 2016 (the only years for which original estimates are available). This growth is largely due to the rising volume of loans in IDR plans.


Education’s approach to estimating IDR plan costs and quality control practices do not ensure reliable budget estimates. Weaknesses in this approach may cause costs to be over- or understated by billions of dollars.

Student Loans


Of course, we still kind of like this guy's idea for repaying student debt...it's a novel approach whereby borrowers are encouraged to stop playing video games in their parents' basements and get a job...it just might be crazy enough to work.

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nukegm's picture

50 %? thats all? woulda thought 80 plus. commies.

Ms. Erable's picture

And 90% of college students are dumber than a box of rocks. Makes ya wonder if the 40% crossover peeps even realize they have student loans in the first place.

techpriest's picture

They all need to go back and look at the commie writings about useful idiots. They think that .gov will take care of them when they get out of school, when they are sick, when their marriage is on the rocks. In reality, the minute they cease to be useful all bills will be called in, no further services will be rendered, and the now non-useful idiots will be discarded.

wee-weed up's picture

Their best chance was Obozo, and now he's gone. So, Fuck off, Snowflakes!

D Nyle's picture

Waiting for ex students to start offing their old teachers when they figure out they have been screwed. Liberals always blame someone else for their fuckups

The_Juggernaut's picture

Yes.  The same government who said that your student loan debt can't be discharged in bankruptcy is going to let you slide.  lmfao!

Manthong's picture

That will happen just before .gov  forgives my mortgage.

..and oh BTW.. I spent most of my adult life paying it down.. and within a small number of months.. that bank money is dead.

..and the only reason I keep any of it around is that it is the cheapest money one can rent.



philipat's picture

It would also be interesting to know what % of the outstanding total was actually spent on college tuition and related. Student loans have become an easy/the only source of credit for many and I'm guessing that like with everything else involving .Gov, it's possible to game the system?

not dead yet's picture

Supposedly 10% of the student loans went to people who ended up not going to college. Unless the state says different college students can apply for food stamps. Wonder how many sold their lunch tickets to get booze and drug money. Plenty of money spent on spring break where staying drunk, when not getting laid, is the norm. Drinking is an epidemic on most college campuses and they glorify it by ranking schools by how great their parties are. Of course the kids aren't much different from most of the rest of America where booze, drugs, ciggies, eating out, and all kinds of vices are a priority expense while paying the bills is secondary.

Agstacker's picture

I seriously doubt many of these kids are willing to live in bush Alaska for 4 years as a school teacher.

not dead yet's picture

Back in the good old days behind the Iron Curtain the apartments were free and so was college and so was medical care. Of course there were multiple families crammed into those dinky apartments and the store shelves were usually empty as no one worked very hard and the countries were technologically backward and the medical care even for the rich was crap. Informants and undercover agents under every rock or hiding behind every door. For the right people there were all expense paid vacations to a Siberian gulag after a torture session in the basement of the KGB. For the rest a vacation on the Black Sea where the sexy babes in bikinis weighed 250 lbs. Russia in the last 20 years has pulled off an economic success, even under sanctions, with rising birth rates and rapidly rising life spans, store shelves full, the top grain exporter on the planet and no more shutting down the schools to get in the harvests. Other countries formerly under the Soviet yoke have shown great improvement too. Now many in those countries, especially the young people, want to go back to the good old days of the government womb and jobs where just showing up is good enough. It was the young people who voted against Brexit because the country would be leaving the secure womb they are used too. Hillary, and especially Bernie, got most of the youth vote because they were going to give the kids everything including the kitchen sink for free. Ironic that Hillary and the Dems portrayed the typical Trump supporter as welfare leeches and useless drunken rednecks but the only thing Trump promised them were jobs. Up until the last decade or so every generation for centuries when old enough set about changing things, mostly for the better. The current crop of the planets finest youngsters expect everyone else to change to suit them.

Buck Johnson's picture

Yep, and also love your logo used to play that game all the time in the late 90's and early 2000's.



Riga's picture

College used to only be for the people at the far right end of the IQ bell curve.

ETA: And my mother was able to pay for her undergraduate+Med school education with a job each summer typing the telephone book or working in a department store.

junction's picture

Since we had a TARP program bailing out Wall Street crooks, have a College Relief Assistance Program - CRAP - to bail out students buried in debt. 

Zorba's idea's picture

perhaps a payment adjustment for inflation, currency debasement, value of degree, part-time Oshit work economy... a minimum 50% discount seems reasonable

drendebe10's picture

Fukda snowflakes. How about the fukn gubmint forgive all the debts of working tax paying US citizens.

proV's picture

That's a good idea. No more debt = no more slavery.

not dead yet's picture

Stupid use of debt is slavery. Intelligent use of debt is a tool of success and freedom. You need a place to stay so it's either use debt to buy a house, if you want to, or you rent and make your landlord, who's the reincarnation of Hitler, rich as he raises your rent every year and won't fix anything. Borrow a few bucks to buy a fairly new car or pay cash for a junker and walk a lot because the POS is in the shop, and draining your bank account, and you have your mechanic on speed dial. Most everything in your life was produced by a company that borrowed money to grow the business and bring new and better products to market.

I know a guy who bought a "starter" home 40 years ago. Paid it off in 12 years and only upkeep and low taxes since then. Saved hundreds of thousands over renting and was able to retire a few years early. If a bill comes up he can write a check and hasn't had any debt in decades as he used debt wisely to eventually save money so he no longer needed debt.

ebworthen's picture

If another 40% believe it, the belief will become reality.

There is such a thing as "un-payable" (except for Wall Street bailouts).

I was raised to pay my debts and earn my keep, but after the bank/insurer/corporation bailouts and the Supine Court ruling that Corporations are individuals and the Obamacare mandate is a "tax" - can we really blame anyone for believing that money is free?

The_Juggernaut's picture

It's like Tinkerbelle?  Awesome.

Skeero's picture

As someone who is 26, I feel like I could get some of mine taken off.

When I first started college they advertised 97% job placement rates. Which now you have to speak to someone to hear that lie. I graduated for welding and my ENTIRE graduating class now works in a different field because none of us could get a welding job. Which is funny.. I finished the 3 semester course in half of the first semester. I even lowballed what I was willing to accept as pay because I loved doing it.


To bad gov schools aren't held to the same standards as for profit schools.. Which is the only reason I haven't tried to get mine forgiven lol. I miss welding a lot, but not taking a pay cut to become a labor slave.

The_Juggernaut's picture

How far in the hole can three semeters put you?

Skeero's picture

I went longer than 3 semesters lol. Just for other things. I'm only on the hook for $12k.

blown income's picture

Well if your a welder , you ain't looking in the right places , I blame you!


In Lake Charles La WELDERS are naming their price with all the work , Isee and meet welders FROM ALL OVER AMERICA driving 75K trucks , living in 100K campers making a killing , it's all on YOU ! really want to WORK! YOU HAVE TO LOOK , IT'S NOT GOING TO LOOK FOR YOU!

Skeero's picture

I take care of my 82 year old grandmother, and 92 year old great aunt. I'm not leaving to take a pay cut. I'm fortunate enough to have made more than that last two years. I bought into a local company so this year won't make as much since I had to use most of my trading accounts funds to buy into it.


I'm also anti Union so I wasn't going that route. My family is more important than me welding. I do own a Miller dynasty 200dx though lol. 

J J Pettigrew's picture

What would tuitions be if the loans werent so easy to get?

Let the loans be loose and free....let the tuitions be huge and ever growing...and then let the left wing commie professors and administrators make huge money and pensions and benefits.....and then let the loans be forgiven...poof....

What a racket.....ramped up costs, money going to the leftists, and essentially it is printed and fake


Remember, one of the first things Obama did when President was to get control over student loans.....gee, why would that be...??


Giant Meteor's picture

Probably not ..

Not only THAT, they'll likely face new weed charges, fines and imprisonment ...

Poor dumb bastards ..

IridiumRebel's picture

....and by government you mean ME. Fuck you.

RafterManFMJ's picture

I hope they're right. If the fucking treasonous cock loving government can give Israel 100 billion dollars per year, and blow several trillion bailing out the bankers, there's no reason they cannot toss a trillion at SL borrowers.

Miffed Microbiologist's picture

The government is like the Borg. It ignores individuals as unimportant knowing assimilating nations is much more profitable.


Giant Meteor's picture


fuckwit @ sheikurbootie Feb 27, 2017 8:45 AM

Edit; For clarification purposes of previous error, committed by me, this morning.

You wrote ;

"I'm 100% on board with bringing the troops home.  We need no troops in a foreign lands.  A few staging bases like Diego Garcia are fine.  But, no to EU (fuck Nato), no S Korea, Japan.  The wars there are over." - Which I am more than less, in complete agreement with … I am pleased to upvote your comment above .. thanks.

Now then, in response to the issue of "common defense" and my hasty sarcasm, involving the use and misuse of the term, COMMON, which I do understand perfectly well, as related to its original INTENT and MEANING, as per the US, Constitution .. Be that as it may, my point, although, awkwardly, and hastily made, and thus leading to our little misunderstanding, is once again,

Where in the fuck in these last how ever many years, has the meaning of COMMON defense been remotely applicable, as opposed to say, standing armies, foreign adventurism, war profiteering, selling of arms to foreign nationals, burgeoning national security state apparatus, deep state parlor games, and the overwhelming might, and massive waste, of the military industrial complex? Illegal wars, misappropriation of funds and funding, off book operation budgets, multi-national force, peacekeeping missions, and an endless list of further "transgressions" and usurpations, regarding the LACK of our "common defense" ?

I believe now, that you were in fact STATING, that we should provide for our common defense, as opposed to what has become the complete bastardization and perversion of the original intent and meaning of, COMMON DEFENSE, see above.

Long story short, I believe we are in agreement. I will let the flamed comments stand, but add this edit for clarification. The error appears to have been mine.  Also, you may not be quite the fuckwit, as initially believed, although I reserve the right to change that opinion, at any time, and without prior notice  … ;)

Awww shucks, just funning with ya on that last bit . .. regards,

The Anti-Federalists on Standing Armies

By Laurence M. Vance

May 21, 2007


Of keen interest to you may be the military perspective, or at least one, abstract ..

Report Date : 27 MAY 1999


... The United States of America has deployed its armed forces 234 times in response to national threats or as a part of a multinational force. In the history of this nation, Congress has declared war only five times. Presidents have deployed the military might of the United States to advance their foreign policy agendas.

Many of these deployments have not been with the prior approval of Congress. Since World War II, the United States has led the world's effort to create international security. This effort has averted a third world war. The creation of collective security bodies assures the continuance of overall world peace. The United States negotiates and ratifies these treaties within the confines of the constitutional powers vested in the executive and legislative branches. The use of these arrangements to employ United States armed forces without prior consent from Congress is contentious.... end quote

Yes, that was 1999 .. how many since then? And as to the "premise" of the abstract, ie; This effort has averted a third world war. The creation of collective security bodies assures the continuance of overall world peace..... I call bullshit ..

secretargentman's picture

I apologize for mostly just skimming past your post. 

Giant Meteor's picture

No problem at all sport. In fact I'm upvoting you for your brevity.

Well done!

Bay of Pigs's picture

+1 I thought you made a good comment and rational argument.

There is nothing "common" with US foreign policy at all these days. More like FUBAR.

LetThemEatRand's picture

Total student loan debt stands at around $1.3T (as of 2016).  That is roughly two years of US defense spending according to official estimates, not including CIA, NSA, and other three letter agencies.  It's a fraction of banking derivative exposure, and approximately what Trump wants to spend on infrastructure.  Most of those bills are paid with control P.

Maybe these little snowflakes are on to something.

Blankone's picture

I know it's just one photo - but how many white boys do you see?

Stinkytofu's picture

wrong question.


you should be asking how many self-identify as "binaries not of colour."

Savyindallas's picture

Yes-let them do it  -and chargeback the banksters who got paid in full for a no-risk loan by the Federal Government. And give future tax credits to those of us who paid off our scam loans that we had to get because of the overinflated tuition made possible by the college/goverment complicit scam to pay these worthless false education institutions to teach us goverment sponsored propaganda and dribble. 

Giant Meteor's picture

Apologies to everyone for the above, half page ZH advertisement.

Now at first glance one may see the post as totally unrelated to the topic at hand.

I think not, 

These fuckers, bail out banks and support corporate crime waves, print fucking money like its going out of style, PUMPS up asset prices, eroding further the "value" of their "funny money," which denotes, among other things, DEBT to the holder, ie college students and such, as to reward themselves, and their cronies through a massively fraudulent system of corruption, false reward, and rampant cronyism, picking winners, socializing losers  ..

And we are now again treated with brilliant news of massive military spending increases, an announced future war on recreational/medicinal cannabis, against the will and rights of individuals, states, state sovereignty, and these fuckers have the unmitigated GALL, to come down further, on an already debt ridden and enslaved population, without any hint of moving on reforms, that were the corner stone of THIS very administrations plank and platform, and thus, won it an unlikely VICTORY ...

Well, I guess the party is over eh ? CQ,  CQD , ... _ _ _ ... over,

Bubba Rum Das's picture

"Well, I guess the party is over eh ? CQ,  CQD , ... _ _ _ ... over,"

So what the fuck else is new?

I'm in my late 50's; I've watched this shit go on since I was a kid old enough to understand political reality & the fact that that a politically corrupt 'Deep State' does exist...-As you were saying? WTF?

Oh yeah, it's all gonna change, just get out your crystal ball & make it happen...


makinbacon's picture

Don't pay?....mandatory 5 year stint in the military.

Maybe they can make skinny jeans out of their camos.....

Lost in translation's picture

I no longer post on ZH from work because - since November 2016 - unless you're "with Her," Ad Staff is terminating most everyone for just about anything. There's an aggressive, Stalinesque purge underway, so I will be concise and mildly opaque with what I say.


In any given section I teach, out of any 40 undergrads, I can say with absolute confidence that there are no more than three who demonstrate the intellectual and creative abilities to merit their being enrolled here, at all.

secretargentman's picture

I've long held that college is, for most students, a giant waste of time, money (mostly their parents' money), and booze. The average ROI must be solidly in the negative.

Vilfredo Pareto's picture

It serves as a marker of middle class membership, kinda like good teeth lol.  As such it opens doors for you.

Vilfredo Pareto's picture

Ever since college became a growth industry I have noticed the standards falling too. I saw a paper from a supposed Master's degree student written at about the tenth grade level.   Sure I make mistakes in my one finger cell phone first draft, but by the second draft you should have spotted all the comma splices at least.  However your tenth grade literacy level will still show no matter what.

PitBullsRule's picture

Thats really not so much compared to the 20 trillion government debt.  There's going to be a lot of inflation so the student debts will shrink, and then they can pay them off.  I think we have bigger problems than this.