Obama plan consolidating student loans
The Obama Loan Forgiveness plan was first introduced in March of 2012.
The act caps loan payments at a fixed rate of 10% of the borrower’s income.
According to the president, a college degree should not be overshadowed by the burden of too much debt, and students should be encouraged to become debt-free soon after their studies end, so they can continue living good lives.
In addition, authorities hope that, with this program in place, more and more people throughout the country will decide to sign up for college.
The program is aimed at students who are facing financial difficulties when it comes to paying back their student loans, even after repaying large parts of the total amounts.
Similar to cosigner release in typical consolidation loans Obama Student Loan Forgiveness offers UPDATE – Federal Student Loan Forgiveness 2015Those students who are eligible for the program will not have to worry about the remaining debt, as they will be exempt from paying it.
The Obama Student Loan Forgiveness Program is aimed at those former students who have consistently struggled to repay their student loans and have already paid back most of the amount.
Former students with outstanding debt on private loans are not currently eligible, but there is a chance for a legislative change in the future.
If so, forgiveness is accelerated by as much as 15 years offering a huge by eliminating loans tax free.
This program clearly offers the most economic advantage.
The following paragraphs provide more information about eligibility for the Forgiveness Act, as well as the impact this program will have on former students.
The first condition to be met by former students who want to apply for the program in 2014 is to have applied for a federal loan, such as a Stafford or a Perkins loan.