Student Loan Forgiveness Program Status

Posted: November 18, 2010 in Helping Hands Events, Secrets, Table Of Contents, TRUTH / Occupy
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In the Jan. 27, 2010 State of the Union Address, President Obama mentioned he was working on approving expedited Student Educational Loan Forgiveness plans in order to lift debt off the working class and increase the strength of the U.S.A. economy.

Nearly 11 months later, currently Nov. 17, the details on the 10 year Public Service Forgiveness Program has been announced at

https://www.dl.ed.gov/borrower/OtherFormList.do?cmd=doViewRequirements&wizardName=Public%20Service%20Loan%20Forgiveness

BUT THE FORM TO APPLY IS STILL UNAVAILABLE. Check every day here!

https://www.dl.ed.gov/borrower/QctrHelpPage.do?cmd=initializeContext&APageID=QctrFaquA804

1/11 Still not available.

2/11 NOPE

3/11 NADA

4/15/2011 What the hell is the hold up????????????

NEARLY 15 months LATER AND WE CAN STILL NOT APPLY to even begin our 120 payments! EVERYONE SHOULD EMAIL the FED Student Loan Department EVERY DAY and complain until this is DONE!

email them HERE:

https://www.dl.ed.gov/borrower/emailUs.do?cmd=emailUs&login=0

What about the 20 year plan for everyone else? A search on DL.ED.gov returns NO (0) relevant search results!

UN-Lincoln Quad

In March 2010, Congress passed a vote to Overhaul the Loan system. This cut off commercial banks from partnerships with government loan entities and shifted as much money as possible into Dept. of Education accredited programs.

Since the bank-based loan program began in 1965, commercial banks like Sallie Mae and Nelnet have received guaranteed federal subsidies to lend money to students, with the government assuming nearly all the risk.

“Why are we paying people to lend the government’s money and then the government guarantees the loan and the government takes back the loan?” said Representative George Miller, Democrat of California and chairman of the Education and Labor Committee.

This action will shift nearly $36 Billion into the Pell Grant program and create new means of debt relief over the next 10 years but Federal announcements on these results have yet to be released. It also shifts $2 Billion into Community College Job Training programs and extended the $2.55 billion to historically black and minority-serving colleges.

Although private banks will no longer be allowed to make student loans with federal money, many will continue to earn income by servicing those loans.

The Congressional Budget Office said the direct-lending approach would save taxpayers about $61 billion over 10 years. Roughly $40 billion of the savings will be redirected to higher education. Education programs will get an additional $10 billion from the health care package.

The bill includes some landmark changes, like automatic increases, tied to inflation, in the maximum Pell grant award. But for individual students, the increase in the maximum Pell grant — to $5,900 in 2019-20 from $5,550 for the 2010-11 school year — is minuscule, compared with the steep, inexorable rise in tuition for public and private colleges alike.

And because college costs are rising so quickly, the maximum Pell grant now covers only about a third of the average cost of attending a public university, compared with three-quarters in the 1970s, when the program began. So each year, more students graduate with debt of more than $20,000.

The legislation will make it easier to pay back student loans, by reducing the share of income that a graduate must devote to loan payments and by accelerating loan forgiveness — but not right away. Those who take out new loans after July 1, 2014, will have to devote 10 percent of their income to payments, down from the current 15 percent, and those who keep up their payments will have their loans forgiven after 20 years, reduced from the current 25.

“Income-based repayment is a fantastic addition to the Senate bill that will allow over a million students to avoid being crushed by unmanageable levels of debt,” said Rich Williams, a higher-education advocate at the U.S. Public Interest Research Group.

With the new legislation, students will have to take out their loans through their college’s financial aid office, instead of using a private bank.

For now, we just  have to sit and wait for the applications to be released so we can get the ball rolling!

https://www.dl.ed.gov/borrower/emailUs.do?cmd=emailUs&login=0

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