Posted in Health Care & Medical

A 10-Point Plan for Loan (Without Being Overwhelmed)

Understanding Student Loan Forgiveness 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. Federal loan borrowers were already qualified for payments basing on 10% of their discretionary income beginning in 2014. The money from the collection are used to fund college students 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. There are different types of repayment plans available under the Direct Loan Program including graduated repayment, income contingent (ICR), pay as you earn (PAYE), income based (IBR), standard repayment, 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. In a standard repayment plan, it depends on the amount of loan, term of the loan, and the interest rate, wherein a borrower pays 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. The lowest monthly payment plan is the Pay As You Earn (PAYE), wherein it is basing on the borrower’s annual income and using the ten percent discretionary income, but the requirements are more difficult as compared to other plans. Revised Pay As You Earn (REPAYE) was made to give a substantial relief to many federal loan borrowers who did not meet the strict qualifications of Pay As You Earn (PAYE). You may qualify for Direct Loan Program if you are working in the public sector after a period of ten years unlike twenty to twenty-five years for standard loan forgiveness program. For more information about student loan forgiveness processing, feel free to check our website or homepage. 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.A Quick Overlook of Loan – Your Cheatsheet

A Quick Overlook of Loan – Your Cheatsheet