How to make use of the Obama Debt forgiveness program


With debt relief soaring beyond numbers like never before, more and more American students are reeling under the burden of meeting their student expenses through loans. Fortunately, the Federal government has taken this dire scenario into consideration and offers several debt relief options, so paying off your student loans is a possibility today. Here we shall look at the various options you have, and how you can make use of the available relief opportunities to minimize your burden.

The relief program that is currently available

Student loan debts have flared in the past few years that are nearly impossible for students currently on an education program to meet the burden of their overhead loans. As a result, it has escalated to such an extent that it even threatens the national financial security. The continuing recession and poor job market performance only adds to this tale of woe.

To help students come out of this current scenario, the government offers several schemes to involve in. Notable amongst these are the Federal Loan Deferment programs, Pay as you Earn Student Loan Repayment plan, Income-based student loan repayment plan, Income-contingent student loan repayment plan and Federal loan forbearance programs.

How to make use of these

Paying back loan amount is not an easy task. Along with the fixed principal amount one also has to pay an interest on the borrowed sum. This makes loans very expensive to bear with in the first place. If you are unable to pay the principal and the interest, then you are in debt. Further you may get more loans at higher interest rates to pay the previous debt. If you have more than one debt to pay off, you are in a debt trap. In such a scenario you are unable to manage your finances and it may become increasingly difficult to break away from this debt trap cycle. One of the ways to overcome and get out of such a problem situation of debt trap is cheap debt consolidation loans.

If you are a student with a federal funded student loan, you can easily enroll in any of the programs mentioned above. Your eligibility for these programs will be checked, based on certain criteria, and if you meet the target you can easily make it through.

A forgiveness program literally writes off your debt, and you do not even have to worry about paying it back. This is more difficult to achieve, although not impossible. If you think you would benefit from such an option, it is a choice you should definitely explore and understand.

Who is eligible?

All students who are on a federal funded student loan are eligible to apply for a student forgiveness plan. The government usually reserves these public service loans for people who volunteer to work with community service organizations. By serving the community through peace and community work, they not only make a significant contribution to the people around them, they also benefit from the experience obtained in the process and can also obtain a forgiveness of the loan they are unable to pay off otherwise. You will have to apply beforehand and prove your eligibility, even while you are obtaining tuitions, so apply today and have a better chance at qualifying for it.

The Obama Loan forgiveness Program is especially attractive, as it provides a huge amount of protection to students who have completed their course but have a huge debt to pay off. The important factor associated with this program is that it provides a reduced loan repayment amount, which amounts to only 10% of their monthly income making it manageable. Also, it offers debt forgiveness when the loan crosses the 20 year mark, which is a significant reduction in the previous forgiveness rate. This way the burden is reduced, and the student is able to pursue his personal interests earlier than before.

If you are drowning in debt, with no solution ahead of you, consider counseling. Get professional help in the form of Obama loan forgiveness and debt relief, and you can slowly swim out of your debt pool. So, what do you do? Know your options and find your solution right away. Don’t wait any more!

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James is a financial expert who has contributed several business and finance related articles. His expertise and first-hand knowledge of economics makes his blogs and articles informative and helpful for those looking out for guidance and assistance in matters related to finance. He has an active schedule of TV and radio interviews He is co-host of the popular VT Radio show Jim and Gordie Show. latest-articles-buttonJim comes from an old military family dating back to the American Revolution. Dozens of Confederate ancestors fought for the South in the War Between the States. Uncles fought in WWII and Korea. His father was a WWII P-40 and later P-51 Mustang fighter pilot. Vietnam found several uncles serving, a cousin, and brother Wendell as a young Ranger officer. His mother was a WWII widow at 16, her first husband killed with all 580 aboard when the SS Paul Hamilton, an ammunition ship with 7000 tons of explosives aboard, was torpedoed off the coast of Algiers. He has been writing, speaking and doing public relations, television, consulting and now multimedia work for a variety of American heritage, historical, military, veterans and Intel platforms. Jim’s only film appearance was in the PBS Looking for Lincoln documentary with Prof. Henry Lewis Gates, and he has guest lectured at the Army Command and General Staff School at Fort Gordon. Currently he is working to take his extensive historical video archives on line to assist his affiliated organizations with their website multimedia efforts, such as the Military Order of World Wars, Atlanta, Sons of the American Revolution, Sons of Confederate Veterans , Assoc. for Intelligence Officers, the Navy League, Georgia Heritage Council, National Memorial Assoc.of Georgia.

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