In this season of giving, students should extend a thank you to government student loan forgiveness programs such as the Obama Student Loan Forgiveness Program. Originally called the William D. Ford Direct Loan Program, it has since been nicknamed due to Obama’s changes. Some of the changes Obama has made include total debt forgiveness for anyone who took out student loans in 2014 and beyond and who have been paying off their loans for twenty years instead of the original twenty-five. Another change made by Obama is that money will be used to fund poor and minority students and increase college funding.
With this program there are five different plans for repayment which include: Standard Repayment, a borrower will pay back a fixed amount of money every month, Graduated Repayment, a borrower pays less than the standard repayment plan but the price will go up after two years, Income Contingent, the borrower makes payments based on their income, family size, loan balance, and interest rate, Income Based, the borrower pays strictly based on income and family size, and Pay As You Earn, usually makes the borrower pay the least amount of money each month but is more difficult to qualify for than the other plans. If you have any more questions or concerns about student loan forgiveness programs, contact an attorney to assist.