Obama plan consolidating student loans
Even if they do, it’s still possible that current student loan holders could be grandfathered into forgiveness under the current guidelines, which don’t have any cap on the amount.
Before you decide to go all-in with this program, be sure to consider how much in student loans you might have left to be forgiven after 10 years of repayment.
This form verifies that you have completed employment required for the program each year.
Completing it requires you to fill in some parts and your employer to fill out the rest.
However, if you perform work of a religious nature as part of your job at a qualifying organization, then that doesn’t count toward the total hours.
You also don’t need to work for the same employer during the entire 120-month period.
If your loan balances are low, however, then it’s unlikely that you’ll have much of your loans remaining to be forgiven after 10 years of payments.
Additionally, only payments made after October 1, 2007 count as qualifying payments.
For many debt holders, REPAYE, PAYE, IRB, and ICR likely make the most sense for maximizing the amount forgiven at the end of the 120-month period.
Not all federal student loans qualify, so be sure that yours meet the requirements. Yet, there is one exception to loan ineligibility: if they’ve been consolidated into a Direct Consolidation Loan. However, only payments made toward the new Direct Consolidation Loan will count toward your 120 payments.
So, beware: this kind of “reconsolidation” can reset the count if you’ve made qualifying payments in the past.
However, forgiveness changes with limitations may be enacted soon.