Obama Student Loan Forgiveness – The Student Loan Pro
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Obama Student Loan Forgiveness

Obama Student Loan Forgiveness is actually the William D. Ford Federal Direct Loan Program

If fact, there isn’t such a program as “Obama Forgiveness”, that is a nickname for the William D. Ford Direct Loan program which is the sole provider of government backed loans to students and parents. As many people have come to recognize Obama Student Loan Forgiveness through their schools, friends and neighbors, the nickname came about when President Obama’s administration, along with congress, passed the Health Care and Education Reconciliation Act of 2010. An important part of this program is that benefits provided were modified to assist Federal loan holders exclusively, while private loans do not qualify for any of the benefits discussed and reviewed below.

There were 3 primary changes introduced by President Obama.

  1. The Federal Government will no longer provide subsidies (benefits) to private (banks & credit unions) lending institutions. Individuals with loans not with the Federal government, will not qualify for Obama Student Loan Forgiveness benefits. If you are not sure about if your loans are Federal or Private, we can help you determine who supplied your loans.
  2. Borrowers of new loans starting in 2014 will qualify to have their monthly payments capped at 10% of their discretionary income, rather than the previous 15%.
  3. New borrowers will also be eligible for forgiveness after 20 years of qualified payments rather than the previous 25 year threshold

In this program, borrowers are able to Consolidate their loans into one single loan. It is this Consolidated loan, where there are many benefits available to borrowers through alternative repayments programs offering lower payments and possible loan forgiveness.

 

This Post Has 6 Comments
  1. Is was tricked into enrollment with unified schools of America. I itS beenanswered an ad for work.its been 26 years i was never asked for a GED or high school diploma .i did not graduate or do i have ged

  2. I would like to know if I can qualify for student loan forgiveness . I did graduate college receiving my associates degree . I did sign up for the bachelors program in which I did not complete . I wasn’t given the Information as in the withdrawal process . I ran into a family emergency in which I was unable to complete the bachelors program . I am currently current in my payments for my student loans . My dependents are 3 and I am single . Please help me . Thank you for your time and all that you do .

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