obama vs donald trump on student loan forgiveness

Obama Student Loan Forgiveness Helps Those Cheated By For-Profit Colleges

In 2015, Corinthian Colleges, one of the largest for-profit colleges in the U.S, went bankrupt after federal investigations found the company to be using deceptive practices to commit fraud towards its students. The federal government is still picking up the pieces from its collapse. But have no fear because in 2010 the Obama administration signed the new Obama student loan forgiveness program that caps student loan payments at 10% of your income. This income-based payment setup is otherwise known as the “Pay as you Earn” program. Check your eligibility. This helps borrowers potentially save thousands of dollars on student loan payments and even “forgive” the loan as a whole!

 

What Is the Obama Student Loan Forgiveness Program?

The Student Loan Forgiveness Program is a federal program that assists those working in public service jobs, such as nonprofits, manage their debt loan through forgiveness after 120 payments (ten years).This program, signed in 2010 by the Obama administration, gives borrowers (as well as lenders) options to help student consolidate and refinance their student loans. This is a great alternative to the standard 20-25 year forgiveness plans that come with standard federal loan repayments. Learn more about student loan forgiveness.

 

Will Trump Get Rid of the Student Loan Forgiveness Program?

There is no guarantee that president Donald Trump will keep the Obama student loan forgiveness program. Trump recently signed off on executives orders that negated some of the previous work by the Obama administration. He has yet to comment on the status of federal student loans, but we are sure it is on his radar. If you ever considered applying for student loan forgiveness, right now is the best time to apply. You have the opportunity to be grandfathered into the current program and pay $0.00/mo on your current student loans. Contact one of our advisors to discuss your student loans.

 

For-Profit Universities Accused of Fraud

The U.S. Department of Education announced that students who were defrauded at 91 former Corinthian campuses across the country “have a clear path to loan forgiveness under evidence uncovered by the Department while working with multiple state attorneys general,” according to a statement from the department. Students who took classes at Corinthian schools under its Everest and WyoTech brands in more than 20 states are eligible to apply for debt relief through an online form. The Education Department is making efforts to reach out to students to notify them of the relief measure through postal mail, email, partner organizations and by other means.

 

Read more: How Does A Student Loan Affect My Credit Score

The announcement marks the largest group of borrowers to be offered debt relief since the Education Department began to sort through evidence last year to determine which Corinthian students deserve to have their loans forgiven. Last summer, a similar online form was announced and sent out to students who attended 12 Corinthian schools under the Heald College brand.

In total, more than 8,800 former Corinthian students have been approved for loan discharges so far, totaling more than $130 million, according to the Education Department.

But some advocates for Corinthian student debt relief think this is all too little, too late. They say that even including the new relief measures, there are thousands of defrauded students who are still not eligible for the relief from loans.

Laura Hanna, co-founder of the Debt Collective, a group that helped organize a debt strike among former Corinthian students last year, said the latest debt discharge still leaves much to be desired.

“The majority of debtors we’ve been organizing with since November 2014 will not receive relief from this announcement,” she said in an email. “And of those who qualify, plenty of people will never receive relief because they won’t know to apply for it. This is a serious issue for all those who are low income, don’t have access to computers or may not catch a news item about said possible relief.”

Hanna and other advocates for more substantive debt relief think that given the widespread evidence of exploitative practices at Corinthian schools — and the kind of disrepute associated with a degree from one of them — an automatic class-wide discharge for all borrowers is both most appropriate and most efficient.

For the moment, it appears the debt relief process will remain slow and prone to allowing some defrauded students to slip through the cracks entirely. Don’t be one of those students and consider applying for the Obama student loan forgiveness program while you still have the chance. Fill out the form below to get started.

 


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question-on-public-service-loan-forgiveness

Public Service Loan Forgiveness is Real! Federal Loans Are Included

 

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Yes! Public service loan forgiveness is real and could be a great option for lowering your student loan payments. You can select any servicer to process your forgiveness paperwork, but make sure you choose a trustworthy company. Student Loans FAQ provides top notch customer service. Our support reps are skilled in answering any and all questions you have related to student loans. We know how stressful it is to be in financial duress, burdened by loans. Our goal is to help you!

Federal loans are forgiven, but if you have private loans you may qualify for a loan consolidation. This is a great option if you have taken out multiple loans and want to break it down to one monthly payment. If you are interested in learning about your options, fill out the short form below:

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top 10 student loan tips for recent grads

The Top 10 Student Loan Tips for Recent Graduates

Whether you just graduated, are taking a break from school, or have already started repaying your student loans, these tips will help you keep your student loan debt under control. That means avoiding fees and extra interest costs, keeping your payments affordable, and protecting your credit rating. If you’re having trouble finding a job or keeping up with your payments, there’s important information here for you, too.

1. Know Your Loans: It’s important to keep track of the lender, balance, and repayment status for each of your student loans. These details determine your options for loan repayment and forgiveness. If you’re not sure, ask your lender or contact studentloansfaqs. You can also log in and see the loan amounts, lender(s), and repayment status for all of your federal loans. If some of your loans aren’t listed, they’re probably private (non-federal) loans.  For those, try to find a recent billing statement and/or the original paperwork that you signed. Contact your school if you can’t locate any records.

2. Know Your Grace Period: Different loans have different grace periods. A grace period is how long you can wait after leaving school before you have to make your first payment. It’s six months for federal Stafford loans (sometimes called Subsidized and Unsubsidized loans), but nine months for federal Perkins loans. For federal PLUS loans, you probably have access to a six-month deferment. The grace periods for private student loans vary, so consult your paperwork or contact your lender to find out. Don’t miss your first payment!

3. Stay in Touch with Your Lender: Whenever you move or change your phone number or email address, tell your lender right away. If your lender needs to contact you and your information isn’t current, it can end up costing you a bundle. Open and read every piece of mail – paper or electronic – that you receive about your student loans. If you’re getting unwanted calls from your lender or a collection agency, don’t stick your head in the sand – talk to your lender! Lenders are supposed to work with borrowers to resolve problems, and collection agencies have to follow certain rules. Ignoring bills or serious problems can lead to default, which has severe, long-term consequences (see tip 6 for more about default.)

4. Pick the Right Repayment Option: When your federal loans come due, your loan payments will automatically be based on a standard 10-year repayment plan. If the standard payment is going to be hard for you to cover, there are other options, and you can change plans down the line if you want or need to. Extending your repayment period beyond 10 years can lower your monthly payments, but you’ll end up paying more interest – often a lot more – over the life of the loan. Some important options for student loan borrowers are income-driven repayment plans such as Income-Based Repayment and Revised Pay As You Earn which cap your monthly payments at a reasonable percentage of your income each year, and forgive any debt remaining after no more than 25 years (depending on the plan) of affordable payments. Forgiveness may be available after just 10 years of these payments for borrowers in the public and nonprofit sectors (see tip 10 below). To find out more about Income-Based Repayment and related programs and how they might work for you, contact one of our student loan specialists to create (or edit) your repayment plan.

Private loans are not eligible for IBR or the other federal loan payment plans, deferments, forbearances, or forgiveness programs.  However, the lender may offer some type of forbearance, typically for a fee, or you may be able to make interest-only payments for some period of time. Read your original private loan paperwork carefully and then talk to the lender about what repayment options you may have.

5. Don’t Panic: If you’re having trouble making payments because of unemployment, health problems, or other unexpected financial challenges, remember that you have options for managing your federal student loans. There are legitimate ways to temporarily postpone your federal loan payments, such as deferments and forbearance. For example, an unemployment deferment might be the right choice for you if you’re having trouble finding work right now. But beware: interest accrues on all types of loans during forbearances, and on some types of loans during deferment, increasing your total debt, so ask your lender about making interest-only payments if you can afford it.

If you expect your income to be lower than you’d hoped for more than a few months, check out Income-Based Repayment. Your required payment in IBR can be as little as $0 when your income is very low. See tip 4 for more about IBR and other repayment options.

6. Stay out of Trouble! Ignoring your student loans has serious consequences that can last a lifetime. Not paying can lead to delinquency and default. For federal loans, default kicks in after nine months of non-payment. When you default, your total loan balance becomes due, your credit score is ruined, the total amount you owe increases dramatically, and the government can garnish your wages and seize your tax refunds if you default on a federal loan. For private loans, default can happen much more quickly and can put anyone who co-signed for your loan at risk as well. Talk to your lender right away if you’re in danger of default.

7. Prepay If You Can: If you can afford to pay more than your required monthly payment – every time or now and then – you can lower the amount of interest you have to pay over the life of the loan. To pay down your loan more quickly, make sure to include a written request to your lender specifying that the extra amount be applied to your loan balance, and continue making payments each month. Otherwise, your prepayment may automatically be credited to a future payment and you may not be billed for the next month.

8. Pay Off the Most Expensive Loans First: If you’re considering paying off one or more of your loans ahead of schedule, start with the one that has the highest interest rate. If you have private loans in addition to federal loans, start with your private loans, since they almost always have higher interest rates and lack the flexible repayment options and other protections of federal loans.

9. To Consolidate or Not to Consolidate: A consolidation loan combines multiple loans into one for a single monthly payment and one fixed interest rate. You can consolidate your federal student loans through the Direct Loan program,. For private consolidation loans, shop around carefully for a low or fixed interest rate if you can find one, and read all the fine print. Never consolidate federal loans into a private student loan, or you’ll lose all the repayment options and borrower benefits – like unemployment deferments and loan forgiveness programs – that come with federal loans!

10. Loan Forgiveness: There are various programs that will forgive all or some of your federal student loans if you work in certain fields or for certain types of employers. Public Service Loan Forgiveness is a federal program that forgives any student debt remaining after 10 years of qualifying payments for people in government, nonprofit, and other public service jobs. Find out more at studentloansfaqs.net. There are other federal loan forgiveness options available for teachers, nurses, AmeriCorps and PeaceCorps volunteers, and other professions, as well as some state, school, and private programs.

One of our experienced loan specialists will review your student loans. There is no credit card or payment required. Just fill out the form below.