You now have a way out. Yes, we’re speaking to you. Those with mind-numbing amounts of federal student loan debt used to be ruined by the fact that the debt wasn’t dischargeable. However, the new Obama student loan forgiveness plan has stepped in to alleviate many of your concerns. Though it might not be perfect and it might not fix everything right at once, it is still likely to save you thousands in the long run, and even more than that in the psychological pressures that you will be relieved of. If you’ve been waiting patiently on the sidelines for a way into financial freedom, it’s time to get in the game.

Things You Should Be Aware Of

Like all laws, there are many fine details scattered throughout the legalese that makes up the Obama student loan forgiveness program. Understanding it on a basic level is fairly easy, and we’ll have a relatively easy time explaining the fundamentals. However, if you’re looking to take some steps towards utilizing the program and would like to make sure you have some professional guidance throughout the process, Practical Debt Relief might be able to help.

As for the basics, let’s begin with the cap. While in the past one was forced to pay up to 15% of their after-tax income towards federal student loans, this new program allows you to pay only up to 10%. Though it might not seem like too much, the figures can add up in a hurry.

More important than the change in income cap is the division in labor qualifications. For example, if you happen to be the lucky individual who is currently a teacher in a low-income neighborhood, you can be relieved of your debts in just 5 years. Those of you doing public interest work are looking at 10 years, while private sector employees are looking at something closer to 20 years.

Though the road itself still needs to be traveled, these new changes will have a major impact on your life. Having the ability to consolidate student loan debt in just a few years for many people will drastically change their career plans.

Restrictions Apply To The Obama Student Loan Forgiveness Program So Apply Today!

As you might imagine, there are a few nagging things that might prevent you from benefiting from this program. E.g. for those of you who incurred your student loans before the program was instituted, you are not eligible to benefit from the program. There are some other restrictions in place, as well as some specific language defining what constitutes “low-income” and “public interest”. Be sure to know what you’re doing before you go changing your life plans. Give us a call and we will let you know if you qualify for student loan forgiveness.