Obama’s William D. Ford Direct Loan program
William D. Ford Direct Loan program
The name “Obama Student Loan Forgiveness” has become the nickname for a program actually called the William D. Ford Direct Loan program. Many people only know about the program and have heard of it through others as the Obama Student Loan Forgiveness program. The name came about when President Obama reformed part of the Direct Loan program in 2010 by signing the Health Care and Education Reconciliation Act of 2010. It’s important to keep in mind all the programs are offered for federal student loans. Private loan borrowers are not able to benefit from any of the below information.
Here are some of the changes that were made by President Obama.
- The federal government will no longer give subsidies to private lending institutions for federally backed loans.
- Borrowers of new loans starting in 2014 will qualify to make payments based on 10% of their discretionary income.
- New borrowers would also be eligible for student loan forgiveness after 20 years instead of 25 on qualifying payments.
- Money will be used to fund poor and minority students and increase college funding
Read more about the program here: https://www.studentdebtrelief.us/forgiveness/obama-student-loan-forgiveness/