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Student Loan Forgiveness Act - 10 Year Plan to Eliminate College Debt?
Can you have your student loans forgiven after 10 years?
Representative Hansen Clarke of Michigan introduced The Student Loan Forgiveness Act of 2012 (H.R. 4170) this month with the aims to “make student loan repayment both simple and fair,” according to the congressman and you may be able to have student loans forgiven if you have been paying for 10 years.
For some, the forgiveness would be instant (those paying 10 years and meeting other criteria) and the hope is the money would be used to help stimulate the economy.
The bill writes a substantial portion of federal student debt by forgiving outstanding balances after a decade of payments at a certain percentage of income.
US News and World report summarizes:
"The act would create a new 10/10 Loan Repayment Plan (with new forgiveness provisions), cap interest rates for all federal loans, greatly improve Public Service Loan Forgiveness, and convert some borrowers' private loans to federal loans."
They have a good analysis here.
Clarke’s bill includes provisions to cap loan forgiveness in the future and only "$45,520 would be forgivable in the future, which would incentivize students to be mindful of education costs and for colleges and universities to control tuition increases," reveals MyBankTracker.Com.
They explore if the measure would even do any good with college tuition rising each year.
Would you favor forgiving student loan debt to stimulate the economy?
(Image: Johnny Louis/WENN.com)
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