Federal Student Loan Forgiveness Programs

Federal Student Loan Forgiveness Programs

Today, the standard federal student loan period is 10 years. For the borrowers who aren’t able to afford their monthly payments under the 10-year plan, the federal government has created income-driven repayment plans to help make student loan payments more affordable under the Federal Student Loan Forgiveness program and the William D Ford Act. If you are looking to qualify for a federal student loan forgiveness program, continue reading.

In certain situations, you can have your Federal student loan forgiven. Under the Pay As Your Earn (PAYE) and Revised Pay As You Earn (REPAYE), borrowers pay 10% of their discretionary income for 240 months (20 years). Under REPAYE if you have graduate loan debt, the repayment period is 25 years.

Trump plans to combine all the programs into one single plan to make it less confusing for borrowers. While Trump’s proposal raises the monthly payment cap from 10 % to 12.5% he cuts the repayment period by 5 years. He plans to pay for his new student loan plan by reducing federal spending overall.



Those working as public servants or teachers who meet certain criteria, under the existing plans, are eligible for loan forgiveness after 120 consecutive monthly payments.

If Congress eliminated the Public Service Loan Forgiveness and placed all borrowers under the same income-based repayment plan, existing borrowers in the PSLF program would be grandfathered in.



Expect to see other student loan policies emerge from Trump’s nominee for Secretary of Education, Betsy DeVos as well as other congressional leaders. These changes may include:

  1. Risk sharing between federal government and universities with respect to students who default on their student loans.
  2. Potential education of federal government’s role in student lending and a corresponding increase in the role of private lenders.
  3. Amount of “profit” the government generates from student loans, which may result in a reduction of interest rates for federal student loans.


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1. Will I save more money on my student loans under Trump’s plan compared to Obama’s existing plan ?

If Trump’s doesn’t change anything and everything else remains equal, student will be able to enjoy the forgiveness programs. Now, if Trump decides to change things around, you should think enrolling into the forgiveness programs soon as you will be grandfathered in once changes are made.

2. How do I apply for student loan forgiveness ?

There are a few factors that determine your eligibility for Federal Student Loan Forgiveness under the existing income-driven plans. To find out if an income-based repayment program is the best option for you, we suggest you speak with a loan specialist. They will be able to take a look at your loans and determine the best route for you. You can also read these 4 ways to get Federal Student Loan Forgiveness.

3. Under student loan forgiveness programs, "will I owe more money after the loan is forgiven ?"

If you have the right qualifications for student loan forgiveness programs, you WILL be saving a lot of money on your student loans as these programs are built to help borrows who are having a hard time paying their loans.

4. Will Trump’s plan lower my monthly student loan payment ?

This depends on what you’re being asked to pay now and if you’re grandfathered into an income-based program already.

5. What are the benefits and risks to income-driven repayment plans ?

Overall, the benefits of income-based repayment programs far outweigh the risks involved. These plans make it affordable for borrowers to pay back their student loans! While not being forced into a financial hardship in the process.



Under the standard repayment program, 10 years in length, borrowers are asked to pay roughly 1% of their current student loan balance every month. If someone owes $50,000, their monthly payments will be around $500/month. This isn’t affordable for the average American which is why these programs exist.

The main benefit: you’ll save money upfront by getting a lower monthly payment which extends the repayment period to 15 years. The yearly adjusted monthly payment will vary based on your income. We've seen students making $35,000 a year and paying nothing on their loans.

If you’d like to learn more and to see if you qualify for any of the FederalStudent Loan Forgiveness programs, contact us here or fill the form below and we'll be in touch with you soon.

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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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Public Service Loan Forgiveness is Real! Federal Loans Are Included



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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