FAQs
What happens if you don't pay off student loans in 25 years?
If you don't pay off federal student loans in 25 years and you're on an income-driven repayment plan, the remaining balance may be forgiven. But you might have to pay income tax on the forgiven amount. For private loans, forgiveness is not an option; non-payment can lead to default, lawsuits, and damaged credit
Will unpaid student loans ever go away?
Unpaid student loans do not simply disappear. Federal student loans can be forgiven after 20 or 25 years of repayment under an income-driven repayment (IDR) plan. But any remaining balance forgiven might be considered taxable income. Private student loans do not have such forgiveness programs and defaulting on them can lead to serious consequences, including lawsuits and credit score damage. It's crucial to explore repayment options and seek professional advice if struggling with student loan debt.
