President Obama recently announced restructuring of the federally backed student loan program to permit private student loans to be consolidated with federally backed student loans at the lower, federal student loan rate. Interest rates are currently very low. Private student loans at 5 to 10% interest rates can now be combined into a single federal government debt consolidation loan at 2 to 5%. Private student loan debt backed by the federal government under Sallie Mae is not eliminated under bankruptcy or negotiable in terms. However, a federal college consolidation loans is forgiven in specific sets of circumstances. For example, twenty years paying 10% of your income to the debt now allows you to seek forgiveness of the remaining federal student loan debt. Before President Obama’s announcement, students had to pay 15% of their income over twenty years. The U.S. Department of Education Teacher Loan Forgiveness Program permits forgiveness of teaching student loan debt after five years of service in under-served school districts. The Public Service Loan Forgiveness Program permits forgiveness of student loan debt after 120 monthly payments over ten years for those who work for the federal government or in the military. These programs are not available for student loan debt racked up on credit cards or most types of private student loans.