Obama consolidating loans
There’s a lot of components involved in President Obama’s loan forgiveness program, but the basic idea is that he changed the way that Federal student loan forgiveness works, making it easier for borrowers to receive total, comprehensive debt forgiveness benefits.President Obama’s reforms to student loan debt have made it significantly easier to pay back college loans, no matter how much you owe, because there’s a light at the end of the tunnel, where before there was only darkness.
But the Obama administration opened the program to anyone with what’s known as a Direct federal loan, regardless of their income or when they borrowed.Borrowers who work in public service can have their loans forgiven in 10 years through the Public Service Loan Forgiveness program.Generally, these initiatives are what student loan assistance companies refer to as “Obama student loan forgiveness.” The problem?As student loan debt grows, more and more borrowers are looking for a way to get rid of it. Some say they’ll give you access to “Obama student loan forgiveness” programs, while in reality they charge you to sign up for income-driven repayment plans or to consolidate your federal student loans — which you can do on your own for free.Here’s the reality about so-called “Obama student loan forgiveness,” and how you can take advantage of legitimate programs instead.The Student Loan Relief Helpline will try to sell you paid services (where they take care of everything for you), but you’re in no way obligated to agree to use their service, and since you can get some free information and advice, it’s definitely worth spending a couple minutes on the phone with them.
You can reach the Federal Student Loan Relief Helpline at: 1-888-906-3065.
Once your loans are combined into a Direct Consolidation Loan, they cannot be removed.
If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you might want to consider deferment or forbearance as options for short-term payment relief, or consider switching to an income-driven repayment plan.
Under President Barack Obama, federal legislation went into effect that made it possible for borrowers to repay their federal student loans based on their incomes.
These programs, called income-driven repayment plans, also forgive your loans after 20 or 25 years of repayment.
You can apply for an income-driven repayment plan for free by completing an Income-Driven Repayment Plan Request form on