Private College Student Loan

Obama Student Loan Forgiveness program for teachers?

I am a new teacher with $35k left in students loan balances. I currently pay $420 a month for all of my loans. My bi-weekly paycheck comes out to a little under $900. Each loan I took out was a Stafford Loan. The loans were sold in two parts by Citi bank to Great Lakes and Sallie Mae. Is the loan forgiveness after 10 years of teaching actually real? Or is it just talk? Am I safe to lower my payments? The payment plans I browsed will save me close to $130 a month and add $25k more in interest, but if the loan forgiveness is true it will not make a difference on what my balance is because I stop paying in 10 years? Any advice is greatly appreciated!!!

Public Comments

1. NOTHING has been approved yet, don't hold your breath. The fact it's being talked about really means little to nothing, and it's not worth worry or talking about until it actually gets approved. Meanwhile, if you try to lower your payments it could only result in increasing the length of payments while also increasing your interest.
2. Kyle is correct that nothing's happened yet. However there are a number of programs that already exist. If you are teaching at a qualified low-income school you may qualify for help. If you are employed in public sector jobs (I don't know if teaching qualifies) you can apply for loan forgiveness after ten years of full payment. I would recommend you look into the programs that already exist and keep an eye out for changes that actually happen before you do anything. If you are a recent grad your college/grad school financial aid department will be happy to work with you to figure out a budget and payment plan and they'll also have a better understanding of the programs that are actually out there. A financial adviser can also help you out.