A new survey has found how US college students have a misconception about the forgiveness of their student loans. Half of them actually think that they will be eligible for the student loan forgiveness after their graduation.
More than ever, now is not the best time for American students to be confused and have misconceptions about college loan finances, but the survey conducted by LendEDU shows that half of the total number of 500 respondents believe that they will receive federal loan forgiveness after finishing college, according to The Daily Mail.
However, the truth is that only a small percent will be eligible for the said public service loan forgiveness. According to WSLS10, student loan forgiveness takes a long time and is only available to specific professions. It is also not guaranteed to all students or even to students who qualify. The US Department of Education guidelines state that student loan borrowers can only be forgiven of their debt if they have chosen to enter a profession deemed to be a public service for a particular period of time and it normally reaches 10 years.
The student loan forgiveness are usually being granted to public teachers who are assigned to teach in the underserved areas. Other reasons being considered for loan forgiveness include death or permanent disability which is not something that is ideal for students to bank on.
Generally, the survey only implies that many college students are still perplexed when it comes to the basic financial aid process, and it is quite alarming. LendEDU noted that the results are quite "eye-opening". It also has an implication that most students still rely on their parents for the information about student loan, when some of the parents themselves also do not completely understand the process.
