Upsurge in Federal Student Loan Forgiveness Programs

by DeLadurantey Law Office, LLC on May 20, 2014

$ on back 2As government programs that forgive some student loan debt are increasing in popularity, officials are trying to rein them in. The concern is that the costs involved with the plans and the concern that the programs will result in universities raising tuition fees even higher. If you are considering seeking student loan forgiveness, don’t delay! Let us help you obtain the relief you need.

According to the U.S. Education Department, the participation in federal student loan forgiveness plans has increased approximately 40% in just six months. This includes nearly 1.3 million Americans that owe about $72 billion in student loans.

One of the fastest-growing plans referred to as the Pay As You Earn program (PAYE), requires borrowers to repay 10% a year of their discretionary income (annual income above 150% poverty level) in monthly payments. After ten years, the remaining, unpaid balance for borrowers working in the public sector or for non-profits is forgiven. For private-sector workers, their remaining student loan balance can be forgiven after 20 years of paying the monthly installments.

The primary concern is that the availability of loan forgiveness will result in colleges inflating their costs causing students to take out more loans. Congress is expected to take action, which may include extending the payment term to 25 years in order to obtain forgiveness or other such measures. The goal is to restrict the eligibility for obtaining forgiveness while allowing more borrowers to repay their loans based upon their income.

If you believe you qualify for student loan forgiveness, take action TODAY! We can help walk you through the process step by step.

If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concern, call DeLadurantey Law Office, LLC,at (414) 377-0518. We serve clients primarily in the areas of student loan law, Chapter 7 and Chapter 13 bankruptcies, debt negotiations and defending foreclosure actions. If you live in the area of Milwaukee, Wisconsin, call us for the debt relief assistance you need. Visit our web site and like us on Facebook.

 

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