The Obama Student Loan Forgiveness Program is a nickname for the William D. Ford Direct Loan Program, and it applies to federal student loans. Although there’s a bit more to it than this, the program is an excellent resource for many reasons. Among other things, the point of the program was to make it easier for students and professionals to pay back their student loans.
Millions of students and professionals struggle to pay off their student loans, even years after they took out the loans in the first place. Programs such as the Obama Student Loan Forgiveness Program certainly help, here are some other quick and dirty tips and tricks that our team of experts at Goodbye Loans has to help you pay off those pesky loans.
Identify Your Debts
The Obama Student Loan Forgiveness Program requires that you make payments on your loans for 20 years to qualify. But focusing solely on your student loan debt for 20 years will cause you to suffer in other areas. Before attacking your student loan debt, write down all of the debts that you have and prioritize them.
Fight for the Lowest Interest Rate
Loan forgiveness programs like the Obama Student Loan Forgiveness Program are immensely helpful. If you’re not getting the lowest interest rate on your loans, however, you may be paying a lot more than you need to. It may take some negotiation, but if you can shop for the lowest interest rate rather than selecting the first student loan option you come across, you can save significant amounts of money.
Go After Them One at a Time
Although it may seem frustrating to be still paying off your loans years after you graduated, programs such as the Obama Student Loan Forgiveness Program are there to help. The best way to tackle loan repayment is one at a time. You may not make a lot of headway at first, but even small steps in the right direction will get you where you want to go.
Consider Other Options
While there’s certainly nothing wrong with wanting to get out from under your student loan debt as quickly as you can, there are other options available. When we work with students on their loans, we always like to make them aware that there may be several student loan forgiveness programs available. The Obama Student Loan Forgiveness Program is only one of many programs you may be eligible for that may be right for you.
Think of Your Long-term Goals
Here’s another thing we want you to think about: When you’re so focused on paying off your student loans, you may be leaving yourself incapable of saving for other things, such as a down payment for a house or deposit on your dream apartment. Make sure you’re being responsible and identifying all other expenses you may have down the road.
The Obama Student Loan Forgiveness Program is an excellent resource for paying off student loans. Under this program, you may be able to qualify for loan forgiveness after you’ve made payments for 20 years. At Goodbye Loans, we know that this seems like a long time, so following our tips up above for paying your student loans for those two decades of responsibility will be key to your success.
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