[rusty rat]

Does the William D Ford direct student loan have the balance forgiven when the borrower reaches a certain age ?

[Fr_Chuck]

These appear to be the repayment plans, normally 10 years repayment with set interest rates, if you are at a lower income, you can be approved for payment over 25 years. But I saw nothing about the balance of loan being forgiven at any point.

Repayment
Servicer:
The U.S. Department of Education is the servicer of Direct Loans.


Options:


Standard Repayment Plan
- Fixed monthly payments (generally $50 minimum)
- Maximum 10 year repayment length
Extended Repayment Plan
- Fixed annual repayment over period longer than 10 years
Graduated Repayment Plan
- Payment amounts vary at graduated levels adjusted every two years
Income Contingent Repayment Plan (ICRP)
The monthly repayment amount is based on a percentage of the borrower's Adjusted Gross Income (and that of spouse if joint tax return is filed). A "payback rate" is assessed according to the total amount of the borrower's outstanding Federal Direct Student Loan debt at the time of repayment. Generally, the repayment period will not exceed 25 years.

[rusty rat]

Thanks Fr_Chuck for the repayment info. I just remember reading something in the WDFord pamphlet about the loan being forgiven, but the balance treated as taxable income. The taxable income would be calculated on the tax rate at the time of retirement. I'll look around my file cabimet for the pamhlet/booklet for the WDFord. I'll get back to you soon. Thanks again. Jim <' )>>><