College Loan Forgiveness Program

"...because in the United States of America, no one should go broke
because they chose to go to college." -Barack Obama SOTU 2010

A few months ago, my good friend Jean mentioned something about a potential college loan forgiveness program for public service workers. I tried not to get too excited over it, but then I heard Obama mention it at the State of the Union. Here is the information Jean provided me with, I thought I would pass this gem along to you and yours. I hope it provides you with some good information and future debt relief.

Eligible Repayment Plans: Borrowers may use income-based repayment, income contingent repayment, standard repayment or a combination of these repayment plans. Payments made under other repayment plans (e.g., extended repayment and graduated repayment) do not count. To maximize the amount of forgiveness, borrowers should use income-based repayment. When income-based repayment is not available (e.g., prior to July 1, 2009), they should use income-contingent repayment.

If a borrower were to use only standard repayment for repaying their loans there would be no balance remaining after 10 years and so no debt to cancel. Standard repayment is only provided as an option to address situations when a borrower is unable to continue under income-based repayment because they no longer have a partial financial hardship and the payments under income-contingent repayment exceed standard repayment. In such a situation the borrower would use standard repayment for the remaining payments and obtain some loan forgiveness at the end of the ten years of payments.

http://www.finaid.org/loans/publicservice.phtml

*I purposely made the font gold--for wealth, money, relief, etc. It certainly is for me!