Updated: Jul 28
Unfortunately, student loans do not go away after seven years. Unlike other types of debt, such as credit card debt or medical debt, student loans cannot be discharged in bankruptcy in most cases. This means that even if you have been struggling to make payments for many years, your student loan debt will continue to follow you until it is paid off.
The only way for student loans to be forgiven or discharged is through specific government programs, such as the Public Service Loan Forgiveness Program, Teacher Loan Forgiveness Program, or the Income-Driven Repayment Plan Forgiveness. These programs have specific eligibility requirements, and not all borrowers will qualify.
Here are some important facts and statistics regarding student loan debt:
As of 2022, the total outstanding student loan debt in the United States is over $1.7 trillion, with over 45 million borrowers.
The average student loan debt per borrower is around $38,000.
According to a recent survey, 65% of borrowers reported that their student loan debt is preventing them from achieving their financial goals, such as buying a home or saving for retirement.
Approximately 11% of borrowers are currently in default on their student loans, which can have severe consequences such as wage garnishment and damage to credit scores.
The COVID-19 pandemic has caused many borrowers to struggle with making payments, with over 1 million borrowers in forbearance or deferment as of January 2022.
Student loan debt is a significant financial burden for millions of Americans. While it is not possible for the debt to simply go away after seven years, there are specific government programs that may offer relief for eligible borrowers. It is important to stay informed about your options and to seek assistance if you are struggling to make payments.