With changes in student loan lending having been set in place over the past months, many are looking for opportunities from the Obama Administration to have their student loans forgiven. Many college graduates are looking for Obama Federal student loan forgiveness options for their college debt, which would obviously make the burden of college loans much lighter or nonexistent for some.
However, despite new student loan practices that were implemented under the Obama Administration, student loan forgiveness plans have been available to individuals with federal student loan debt for quite some time. Specifically, college graduates who have public service jobs may qualify to have their student loan debts forgiven after 10 years of repayment.
While this specific student loan forgiveness option is available to college graduates who have federal student loan debt and are enrolled in a Direct Loans repayment plan, certain private lenders of student loans may also offer a similar student loan forgiveness opportunity. However, students with federal debt may make 10 years worth of repayments, which can fall under various repayment plans, and have their debt erased after their repayment time period has expired.
There are also cases where repayment plans can be tailored to meet a graduate’s income, like an income-based repayment program, which allow college graduates who are having difficulty meeting their monthly student loan payment obligation to have their payment dropped to a percentage of their income. This can help with repayment if a student is required to repay a large sum or for those who may qualify for student loan forgiveness but are still unable to to meet their student loan obligation.
Obama federal student loan laws have also made changes in the way that student loans will be lent, so this could open more borrowing opportunities or even Federal grant opportunities for college students in the future. However, college students are often advised to seek out as much funding from scholarships and loans as they can before turning to loans so that they can avoid having debt upon graduating college.