What Is Loan Forgiveness?

Officially known as the William D. Ford Direct Loan Program, the Obama Student Loan Forgiveness Program gained this nickname after President Obama in 2009. Obama created reforms to the Direct Loan Program originally implemented by the Bush administration several years earlier. However, the reforms only apply to federal loans. Some of the reforms made by Obama include:

  • Starting in 2014, borrowers would qualify for payments based on 10% of their discretionary income instead of 15% as outlined by the Bush forgiveness program
  • Family size will also be considered when calculating new payments based on income
  • Borrowers may qualify for as low as a $0 monthly payment
  • Remaining balances are forgiven by the US Department of Education as part of their economic stimulus plans
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We’re dedicated to helping reverse the student debt crisis in America. Whether you choose to have us prepare your documents or do it on your own, we truly want to see you in a better situation.

Student Loan Forgiveness

Enroll In One Of The Many Programs From The Department of Education Today


Public service loan forgiveness for teachers, law enforcement, nurses and other government and non profit professions.

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Income Driven Payments

Most qualify for a lower monthly payment based on income, not loan amount. Some even qualify for $0 payments.

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Defense to Repayment

For profit colleges have been taking advantage of students over the last few years. If you’re a victim you may qualify for full loan forgiveness.

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Campus Closings

Full loan forgiveness for students that were in attendance during a campus closing without teach out programs implemented.

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Loans in Defalut

Get your loans out of collections and avoid wage and tax garnishments imposed by the Department of Education.

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Parent Plus

Borrowers with Parent Plus loans can also enroll into an income based repayment program to lower monthly payments.

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What are the benefits of the Obama student loan forgiveness program?

There are several benefits that borrowers can enjoy when it comes to the Obama Loan Forgiveness. Borrowers have the chance to consolidate all loans into one and take advantage of an affordable repayment plan. The Direct Loan Program offers several repayment plans including:

  • Graduated Repayment: Payments are lower than the standard repayment plan. However, the payments increase every two years.
  • Income Based (IBR): The payment plan is strictly based on a borrower’s income as well as the size of their family. Borrowers are expected to pay 15% of their discretionary income to the loans. Moreover, the borrowers can enjoy payments as low as $0/month.
  • Standard Repayment: Borrowers pay a fixed amount every month for as long as it takes. The amount of payments made depends on the term of the loan, borrowed amount and the interest rate charged on the loan.
  • Income Contingent (ICR): Payments made are based on the amount borrowed, interest rate, the income of the borrower, family size and loan balance. Like IBR, borrowers may benefit from payments as low as $0/month.
  • Pay As You Earn (PAYE): This is the lowest monthly payment plan. Payments are based on yearly income and use 10% of one’s discretionary income, unlike the 15% used in IBR. Qualification for the PAYE program is more difficult compared to other payment plans.
  • Revised Pay-As-You-Earn (“REPAYE”) Plan: This new income-driven plan may provide substantial relief to millions of federal loan borrowers who are currently ineligible for the Pay-As-You-Earn plan due to that plan’s strict eligibility requirements.

Interest Forgiveness

With the Obama Loans Forgiveness Program, Income Based Repayment doesn’t capitalize on the subsidized portion of one’s loan. This usually applies if the Income Based Repayment is less that what’s normally in interest and for the first three years of the Income Based Repayment. Depending on the payment plan as well as the loan balance, the amount can amount to thousands of dollars.

See If You Qualify
For Loan Forgiveness

Learn more about the student loan forgiveness programs you qualify for. Complete the simple pre-qualification form. You can also chat with a representative using the live chat window in the bottom right corner of your screen.

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What do our clients think?

Marta DiazArt Institutes

My monthly student loan payments were $360 a month. After calling my new loan payments dropped to $39 a month and the rest will be forgiven!

Brian WallaceITT Tech

I was having a hard time finding a good paying job and my loans were placed in collections. I joined the rehabilitation program and got out of default without spending the $5000 necessary to catch up on my late payments.

Jason CalderonArgosy University

I was misled about employment rates by my college recruiter just to get me enrolled. It was difficult to prove my claim but when I did, my entire balance was discharged.

Kira SlaterSanford Brown

I tried doing my paperwork on my own but I was rejected twice. I should have had my documents professionally prepared from the start. I would have save thousands in monthly payments.

Benjamin WeissRutgers University

I was skeptical about the programs and had a lot of questions. They explained everything in a way that made it easy for me to understand my loan forgiveness options.

James MitchieUniversity of Phoenix

I was struggling to make payments and fell way behind. When I called in I could immediately tell they cared. So different from my call with the collections department.

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Academy of Art University Loan Forgiveness


Founded in 1929, Academy of Art University, formerly known as Academy Art College is a for-profit college based in San-Francisco, California. AAU is one of the largest property owners in San-Francisco, with the main campus located on New Montgomery Street. The Academy of Art University received accreditation in 2007 from the Western Association of Schools and Colleges.

There are currently a sea of complaints from current and former students of AAU. One of the main complaints from many students is the astronomical tuition rates. There are also plenty of complaints from lack of leadership and general confusion from the staff. If you feel like you were a victim to any of these circumstances let us help you with student loan forgiveness today.



Student loan debt has reached an all-time high, and according to the Consumer Financial Protection Bureau, the total amounts to around $1.4 trillion. Goodbye Loans can help determine if you qualify for the student loan forgiveness.

Goodbye Loans matches thousands of graduates with federal programs that are offered by The Department of Education to consolidate and lower their current Federal student loans. We help you take advantage of the latest regulations put in place by Congress and President Obama and potentially save thousands of dollars. Debt is hard to ignore. When you’re staring down a ballooning credit card balance and fending off insistent phone calls from angry creditors, it can be an all-consuming enemy.

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Complete the form to see if you’re eligible for the forgiveness program.

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