Latest Posts
Home > Ask The Get Out of Debt Experts > Is Obama Really Writing Off Student Loans? – Cristina

Is Obama Really Writing Off Student Loans? – Cristina

“Dear Steve,

Thank you for your help. I think it’s great what you are doing!

I received a phone call from Sallie Mae today that my student loans are due for re-payment. I always thought that I would be paying about $300.00 a month, but it’s actually $732.53. I am currently unemployed. But, private loans, the Representative said, doesn’t matter if you are unemployed. I am 11 days late and know that after 45 days it goes to my credit. I am in the process of getting my teaching certificate. But, it will probably take about 2-3 months and then I have to find a job teaching. Right now I can’t pay this so I was searching the web to research on Obama writing off student loans and came across this website.

Is Obama writing off student loans? How can I defer a private loan or lower the monthly payments since I am unemployed? Thank you!

Christina”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Dear Christina,

The hype you hear all over the web about the Obama student loan plan is just that, hype. President Obama proposed that Congress create new legislation that would allow for a better, more fair and reasonable repayment plan for student loans. But a similar plan exists today and is known as the Income Based Repayment program (IBR).

The proposal from President Obama was to make the minimum payment percentage under a new plan to be 5% less that what it is now and write the debt off a few years faster. So the proposed Obama student loan plan is helpful but the majority of the plan already exists and is in place for people.

The bad news is that since you have SallieMae loans, none of this applies to you. The IBR and any future student loan repayment options will be for government backed loans and not private loans.

Big Hug!

Is Obama Really Writing Off Student Loans?   Cristina
Get Out of Debt Guy – Twitter, G+, Facebook

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Is Obama Really Writing Off Student Loans? - Cristina by

Share This and Spread the Word

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • http://profile.yahoo.com/FRX32WNXUP2KLOO3MYSH3QDVQM sydgrrl

    Christina,
    Consolidate with Direct Loans then you will be able to take advantage of the different repayment options plus forbearance. Call them at 800.848.0979 

  • Christina

    Thank You. The response was very helpful!

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.