Although debt forgiveness or repayment plans sound good for those who have problem making repayments, there are many drawbacks for forgiveness or repayment plans.

Income-based repayment also have some drawbacks. The biggest disadvantage is that, your interest will increase. Because the repayment period is prolonged. For those income-based repayment plans, the interest goes with the income. If your income increases, then your interest will increse as well.

The laws and regulations are the uncertainties since they may change according to adjustment of federal law. You never know what will happen.

If you want to have your loan forgiven by serving the public, it will take you less time than through a repayment plan. However, you’ll generally have less salaries than private-sector positions. It’s possible that if you find a job with high salaries and you can pay off your student loan quicker than working in public service even if the job doesn’t provide a student loan forgiveness.

One more thing to be considered, you may have to pay taxes on the forgiven loan, since IRS takes those forgiven debt as income.

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