What exactly is the Obama Student Loan Forgiveness Program?
Well, what became known as the ‘Obama Student Loan Forgiveness Program’ is actually a nickname for the changes he made to the US government’s ‘Federal Direct Loan Program.’ The ‘Obama Student Loan Forgiveness’ is a program that’s officially named the ‘William D. Ford Direct Loan program’, but most people know this program only by its nickname.
This name was born when in 2010 President Obama was reforming several elements of the Federal Direct Loan program when he signed theHealth Care and Education Reconciliation Act. Please bear in mind that this only refers to programs that include federal student loans. Students that have private loans can not benefit from the information presented here.
President Obama made (among others) the following changes:
The federal government stopped giving subsidies to private lenders for loans that are federally backed.
From 2014 on, new borrowers may qualify to repay loans based on 10 percent of their discretionary earnings.
From 2014 on, the term after which new borrowers may qualify for student loan forgiveness is lowered from 25 to 20 years.
Federal funds are used to support minority students and to increase funding of colleges.
Some benefits of the Obama Student Loan Forgiveness Program:
Grad PLUS Loans were created to help professional and graduate students cross the chasm between their financial aid and their graduate degrees. Federal Grad PLUS Loans are similar to traditional FFELP PLUS Loans, and Direct PLUS Loans. However, with the Federal Grad PLUS Loan, the student is the borrower and is the party responsible for the financial obligation.
Are you interested in Grad PLUS Loans?
Apply for Grad PLUS Loans today.
In order to qualify for Grad PLUS Loans, the applying student must pass a credit check.
Factors which may prevent a student from qualifying for Grad PLUS Loans are:
Are you interested in applying for Graduate Student Loans? There are many loans available to college students that are pursuing their professional or graduate degrees. Both the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDSLP), offer Graduate Student Loans to undergraduate students. There too are many private lenders which offer Graduate Student Loans as well.
Interested in applying for Graduate Student Loans? After receiving a college degree, many students choose to pursue their professional or graduate degrees. Though the costs of graduate school may be on the rise, with Graduate Student Loans, students which could not normally afford grad school, can continue on to receive their Graduate and Professional degrees.
In order to qualify for Federal Perkins Loans, you will need to file a FAFSA, and wait for a determination by the school which you applied to. Federal Perkins Loans are provided to schools at a set level by the Department of Education. If you qualify for Federal Perkins Loans, the school will contribute some of their funds, along with funds that they receive from the department of education to assist you with your tuition costs.
Do you need to apply for Federal Perkins Loans?
The determination to qualify for Federal Perkins Loans is based on the criteria which are submitted in the FAFSA. The U.S. Department of Education uses a formula to assess the student’s Expected Family Contribution (EFC), in order to consider whether the student qualifies.
Do you need to apply for Federal Student Loans? Receiving a college education may be the single most important accomplishment that one may achieve in their entire life time. In a recent report, the US Department of Education stated that over eighteen thousand men and women had enrolled in a degree-granting institution for that year, and by 2016, those numbers will have had increased to nearly twenty-one thousand students.
Recent facts regarding tuition at Stanford University showed that out of the 6,689 students enrolled over a four quarter term, 5,197 of the students required financial aid at an average debt cost of over $16,700.
Do you need to apply for Federal Student Loans to pursue your college degree?
With the costs of college tuition increasing every year, it is becoming more and more difficult for students to afford the required funding to attain a college degree. With Federal Student Loans, many are afforded the option of college which may not have been available otherwise.
Of the more popular Federal Student Loans, are Federal Stafford Loans. Federal Stafford Loans come in two forms: