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Understanding Obama Student Loan Forgiveness Program and Direct Loan Programs The Obama Student Loan Forgiveness Program is officially known as the William D. Ford Direct Loan Program which created Direct Loan Program reforms applying to federal loans. Beginning in 2014, federal loan borrowers qualified for payments basing on ten percent of their discretionary income. The money collected are primarily intended to increase college funding and for funding poor and minority students. Private lending companies no longer receive subsidies from the federal government for federally backed loans. There are many benefits that federal loan borrowers can enjoy through Obama Loan Forgiveness Programs, wherein they can make a consolidation of all their federal loans into one, taking advantage of affordable repayment plan. The Direct Loan Program is offering several repayment plans such as graduated repayment, income based (IBR), standard repayment, income contingent (ICR), pay as you earn (PAYE), and revised pay-as-you-earn (REPAYE). In terms of graduated repayment plan, payments are lower as compared to the standard repayment plan but are increased every two years, and thereafter. Income based repayment plan is strictly based on the income of the borrower and the size of his family, wherein the borrower is expected to pay fifteen percent of his discretionary income, and a borrower can enjoy as low as $0 a month. The basis of a standard repayment plan includes the loan term, amount, and the interest rate, wherein borrowers pay a fixed amount each month until the loan is paid. When it comes to income contingent repayment (ICR), it depends on the borrower’s income, borrowed amount, loan balance, interest rate, and family size, and borrowers can enjoy as low as $0 a month. Pay As You Earn (PAYE) is the lowest monthly repayment plan that is based on the borrower’s annual income, using the ten percent discretionary income, as compared to other plans, the requirements are more difficult. Revised Pay As You Earn (REPAYE) gives substantial relief to many federal loan borrowers who are not eligible for the Pay As You Earn (PAYE) because of strict requirement. If you are working in a public sector, you may qualify for Direct Loan Program after a period of ten years unlike twenty to twenty-five years for standard loan forgiveness program. Allow us to help you find the best repayment loan program for you, feel free to visit us n our homepage or website. Repayment of loans is really daunting and challenging especially if you need to keep up with a budget every month, but check your options with us, and find out how you can be free of heavy payments. Come and contact us so we can help you in the best way we can.Questions About Forgiveness You Must Know the Answers To

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