Half of US Students Think Their Loans Will be Forgiven

A new survey has revealed that nearly half of US students believe that their student loans will be forgiven following graduation.

Conducted by LendEDU, a private company which links college students to appropriate loans and loan refinancing, the poll revealed surprising misconceptions that students have about education funding.

When 500 students were asked by the pollsters if they believe that they will be eligible for federal student loan forgiveness programs following graduation, 49.80 percent believed that they would be. Asked if it is possible to refinance federal student loan debt, 64 percent of college students also incorrectly agreed that they believed that it was.

“It is concerning that current college students are underestimating the cost of student debt today and tomorrow,” LendEDU noted.

Additionally, 33 percent of college students could not identify the differences between subsidized and unsubsidized loans, and 79 percent of college students could not identify the current repayment term of a federal student loan.

Student loan forgiveness is only open to certain professions and even with appropriate criteria is not guaranteed. Guidelines set by the Department of Education state that borrowers are only eligible for forgiveness if they enter a public-service profession and remain for at least ten years. It is generally reserved for people such as public-school teachers who accept jobs in districts which need extra support. The small percentage who qualify must then make 120 consecutive payments before loan forgiveness can occur.

Other reasons one can acquire loan forgiveness are permanent disability or death.

“It is concerning that current college students are underestimating the cost of student debt today and tomorrow,” LendEDU concluded of the responses.

Currently, 44.2 million Americans owe roughly $1.3 trillion in unpaid student-loan debt. The average graduate in 2016 will have $37,172 in student loan debt, up 6 percent from the 2015 average.