Obama approves student loan forgiveness program but there is no student loan program which completely forgive for student loan
. Obama's plan offer forgiveness of remaining balance after 20 years payment and this duration decreased to 10 years if you are a public service worker. This is unfair because everybody can't work as a public server for 10 years for the forgiveness of their student loan.
There exist a teacher loan forgiveness plan if you are a full time teacher then you can take benefit of it, such as those teacher who continuously work for 5 years in an elementary or secondary school at low income. Peoples who are in military with a degree can become beneficed of student loan forgiveness program. This program is also fixed for military reserved force i.e. coast guard reserve.
If you doesn't fit under any program as mentioned above then there is another program for you called income based repayment program (IBR). There is another program named student loan repayment program that capped at 10% of income exceeding living allowance. With this plan you can reduced your monthly payment.
Income-based repayment is only available for federal student loans, such as the Stafford, Grad PLUS and Perkins loans. Private lenders such as Sallie Mae and Chase are not included in the plan. Use nay online loan calculator if you want to know your monthly payment under Obama's new income based repayment plan.
For newer loans Obama's plan is most effective. You are free to choose loan forgiveness plan time e.g. you are working in public service sector from last eight years and if you choose Obama's loan forgiveness plan then it will take only two years but if you choose income based repayment program then your time will reset and it will take 10 years to get rid of your remaining loan balance. No exception applies to you if you are affiliated with income contingent payment program in past.