The Pay as you Earn proposal will be available to more than 1.2 millions student borrowers and open new opportunities to them if they wish to consolidate Federal Student Loans more efficiently. The effect already took shape in 2014 and the statistics now suggest that the new income groups will profit from the scheme from 2017.

1. Forgiveness in Federal
Loans likely to grow
into a Big Socio-
Economic Push

2. The Obama administration is
leaving no stone unturned to
upgrade the way Federal loan
segment is handled in USA. It
recently announced a series
of amendments in the Direct
Loan Program. The Obama
Debt forgiveness program is
already a raging success. The
new announcements are
executive decisions that have
been proposed to boost the
volume of people engaged in
productive public service.

3. Goodbyes to third Party Collectors
The new student loan forgiveness
program is being projected as a pillar of
support to both education as well as
economy. The objective of the
forgiveness program is to make the
Federal student loans more affordable
and easier to manage. In all likelihood, all
the intermediary non-federal agencies
and third party agencies will be pushed
out of the debt collection channels. The
Pay as you Earn proposal will be
available to more than 1.2 millions
student borrowers and open new
opportunities to them if they wish to
consolidate Federal Student Loans more
efficiently.

4. The effect already took shape in 2014 and the statistics now
suggest that the new income groups will profit from the scheme
from 2017. As of now, only borrowers of federal loan schemes
registered between October 2007 and October 2011 are covered
under the student loan forgiveness program with Pay as You Earn
scheme.

5. Watch Out for 2017
The cap for the Pay as You Earn
scheme for student borrowers has
been set at 10 %. The balance
debt can be repaid in 20 years
from the day of loan application.
The only criterion for forgiveness
is to pay the monthly interest
sincerely for 20 years without fail.
By 2017, the changes will attract
close to 6 million borrowers. The
new federal loan borrowers can
effectively consolidate Federal
student loans and slash the
existing interest rates by
significant amount.

6. Limitations are just a Pass
There are few specific limitations as
well when it comes to avail the benefits
of student loan forgiveness program.
The loan statement does not suggest
any thing about whether the student
can pursue education abroad. As per
the current norms, only American
students can apply for Federal Student
Loans and not international students.
In future, the forgiveness scheme is
likely to be uniformly applied
throughout education segment
covering K-12 students as well. There
could be some respite for international
students who wish to serve in the
country as its patriots.

7. New Job Opportunities and Socio-Economic Boost
The most important aspect of the Student Loan forgiveness program
is its effect on the public service opportunities. To avail forgiveness
within 10 years of loan debt interest repayment, more students are
enrolling with public service. Engineers are ready to work with civil
infrastructure and Smart City Development plans. Suddenly, there are
more educated officials working at public offices. This directly has a
significant impact on the quality of federal services enjoyed by the
citizens.

8. With flagging job market and infrastructure in the country, the
student loan forgiveness program is definitely a good debt
management scheme.

9. Student Debt Center
Address - 18459 Pines Boulevard, Suite
532, Pembroke Pines, FL 33029
Contact No. - 800-551-7187
Email Address - info@studentdebtcenter.org
Website - http://studentdebtcenter.org/