The plan was introduced by President Obama in 2014 due to the increasing number of Americans that are struggling with repaying their student loan debts after college. The plan is intended to help students who are not fully able to pay the full loan repayment amounts. The plan clears all outstanding debts of students who have made timely and regular payments on their eligible federal loans for more than 20 years. Individuals that work in the Public Services may qualify to have their amounts forgiven within a 10 year period.
The Main Goal of Obama Loan Forgiveness is to ease and alleviate financial burdens among graduates and college students. Moreover, the primary objective of this plan is to help students by freeing them of their debt burdens so they can focus on achieving a degree rather than settling debts for decades to come.
The plan takes into consideration the size and income of the family when calculating the monthly loan payments due by the borrowers. Those who qualify may have their monthly payments restricted to 10% or less of their income. People that are fully disabled qualify to have their federal student loans discharged.
The Obama Loan Forgiveness Program is designed to offer borrowers a sensible repayment alternative for those who have financial hardships. But, there are requirements that borrowers must meet before they qualify for the plan. It is important for students to consider all options before committing to any type of repayment plan.
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