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Pay As You Earn Repayment Plan

Obama student loan forgiveness scheme is extended to student borrowers who are eligible for PAYE repayment program. So,the borrower has to be necessarily a Federal Loan borrower.<br>

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Pay As You Earn Repayment Plan

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  1. Obama Loan Forgiveness: 6 Things to help you sail through repayment

  2. Each passing day, the students’ loans debts are growing big and harsh. Even as students are looking new ways to find a way around for the loan repayment terms, the Obama Student Loan Forgiveness is rather an impressive financial aid that has proved to be successful in its prospects so far. Let us discuss what promises Obama Student Loan Forgiveness scheme makes.

  3. 1. Earn forgiveness after 20-25 years Is it really possible? Yes, that’s what Obama Loan Forgiveness effectually promises to deliver. According to the standing orders of the forgiveness bill, a borrower s eligible for forgiveness after 20-25 years if he/she pays regular interest on the loan amount for a certain period of time, without defaulting even once. For those working in the public sector, the forgiveness can be earned at the end of the 10th year of loan repayment.

  4. 2. Eligibility is complex! Not at all, especially if the borrower is a working professional in a public service organization. Obama student loan forgiveness scheme is extended to student borrowers who are eligible for PAYE repayment program. So in short, the borrower has to be necessarily a Federal Loan borrower. The loan forgiveness can be applied to student borrowers who have availed loan after October 1, 2007. Thus, the first series of Obama Student Loan Forgiveness scheme will arrive only after October 1, 2017.

  5. 3. The forgiveness arrives automatically The most enticing aspect of the loan forgiveness promised under Obama scheme is that the borrower will enjoy the promised benefits and incentives at the end of the 20th year. Student loan borrowers enrolled with PAYE, Income-based Repayment and Contingency repayment schemes can enjoy forgiveness only after 2030, that too, if they make regular monthly interest payments.

  6. 4. What portion of the income will go into repayment? If the student loan borrower decides to link the repayment program with his/her income, it will be easy to gain the benefits from the Obama Forgiveness scheme. In Income-based repayment scheme, the borrower agrees to set a standard part of the income towards repaying the loan. It is usually 10-12 percent of the monthly income.

  7. 5. What about the Private Loan borrowers? Unfortunately, private loan borrowers have been kept away from the benefits of the Obama Student Loan Forgiveness scheme. Private lending institutions don’t have coverage from the PAYE repayment plan, and thus the indifference so far.

  8. 6. Consolidation is open too! Yes, Student Loan Forgiveness program offers the borrower an alternative ‘escape’ strategy. Consolidation of the loans makes things easy to manage. The consolidation can earn the borrower a decreased monthly payment amount, which could be anywhere between 0.25 to 3%, depending on the loan volume. Might seem a paltry return on the consolidation, but when compared to long-term returns spanning over 20-25 years, it could easily save the borrower $10,000 for sure. Add to it the benefits of forgiveness too! That’s double reward earned from the Obama Student Loan Forgiveness schemes.

  9. Contact Us Student Debt Center Contact Person - Cesar Buitrago Address - 18459 Pines Boulevard, Suite 532, Pembroke Pines, FL 33029 Contact No. - 800-551-7187 Email - info@studentdebtcenter.org Website - http://studentdebtcenter.org/

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