consolidate federal student loans
DESCRIPTION
The Pay as you Earn proposal will be available to more than 1.2 millions student borrowers and open new opportunities to them if they wish to consolidate Federal Student Loans more efficiently. The effect already took shape in 2014 and the statistics now suggest that the new income groups will profit from the scheme from 2017.TRANSCRIPT
Forgiveness in Federal Loans likely to grow into a Big Socio-Economic Push
The Obama administration is leaving no stone unturned to upgrade the way Federal loan segment is handled in USA. It recently announced a series of amendments in the Direct Loan Program. The Obama Debt forgiveness program is already a raging success. The new announcements are executive decisions that have been proposed to boost the volume of people engaged in productive public service.
Goodbyes to third Party Collectors
The new student loan forgiveness program is being projected as a pillar of support to both education as well as economy. The objective of the forgiveness program is to make the Federal student loans more affordable and easier to manage. In all likelihood, all the intermediary non-federal agencies and third party agencies will be pushed out of the debt collection channels. The Pay as you Earn proposal will be available to more than 1.2 millions student borrowers and open new opportunities to them if they wish to consolidate Federal Student Loans more efficiently.
The effect already took shape in 2014 and the statistics now suggest that the new income groups will profit from the scheme from 2017. As of now, only borrowers of federal loan schemes registered between October 2007 and October 2011 are covered under the student loan forgiveness program with Pay as You Earn scheme.
Watch Out for 2017
The cap for the Pay as You Earn scheme for student borrowers has been set at 10 %. The balance debt can be repaid in 20 years from the day of loan application. The only criterion for forgiveness is to pay the monthly interest sincerely for 20 years without fail. By 2017, the changes will attract close to 6 million borrowers. The new federal loan borrowers can effectively consolidate Federal student loans and slash the existing interest rates by significant amount.
Limitations are just a Pass
There are few specific limitations as well when it comes to avail the benefits of student loan forgiveness program. The loan statement does not suggest any thing about whether the student can pursue education abroad. As per the current norms, only American students can apply for Federal Student Loans and not international students. In future, the forgiveness scheme is likely to be uniformly applied throughout education segment covering K-12 students as well. There could be some respite for international students who wish to serve in the country as its patriots.
New Job Opportunities and Socio-Economic Boost
The most important aspect of the Student Loan forgiveness program is its effect on the public service opportunities. To avail forgiveness within 10 years of loan debt interest repayment, more students are enrolling with public service. Engineers are ready to work with civil infrastructure and Smart City Development plans. Suddenly, there are more educated officials working at public offices. This directly has a significant impact on the quality of federal services enjoyed by the citizens.
With flagging job market and infrastructure in the country, the student loan forgiveness program is definitely a good debt management scheme.
Student Debt CenterAddress - 18459 Pines Boulevard, Suite
532, Pembroke Pines, FL 33029Contact No. - 800-551-7187 Email Address - [email protected] Website - http://studentdebtcenter.org/
Contact US