Support the Student Loan Forgiveness Act of 2012

[mi233623]

Subject: Support the Student Loan Forgiveness Act of 2012

 

Hi,

 

I signed a petition to the U.S. Senate, House of Representatives, and President Barack Obama, which says:

 

"Total outstanding student loan debt in America is expected to exceed $1 TRILLION this year. Millions of hardworking, taxpaying, educated Americans are being crushed under the weight of their educational debts, while the economy continues to sputter. Support a REAL economic stimulus and jobs plan. Support the Student Loan Forgiveness Act of 2012 (H.R. 4170)."

 

Will you sign this petition too? Click here:

 

http://signon.org/sign/support-the-student-loan?source=s.fwd.in&r_by=1904615

 

Thanks! Want to support our work? MoveOn Civic Action is entirely funded by our 7 million members—no corporate contributions, no big checks from CEOs. And our tiny staff ensures that small contributions go a long way. Chip in here.

 

[arameth]

Subject: Support the Student Loan Forgiveness Act of 2012

 

Hi,

 

I signed a petition to the U.S. Senate, House of Representatives, and President Barack Obama, which says:

 

"Total outstanding student loan debt in America is expected to exceed $1 TRILLION this year. Millions of hardworking, taxpaying, educated Americans are being crushed under the weight of their educational debts, while the economy continues to sputter. Support a REAL economic stimulus and jobs plan. Support the Student Loan Forgiveness Act of 2012 (H.R. 4170)."

 

Will you sign this petition too? Click here:

 

http://signon.org/sign/support-the-student-loan?source=s.fwd.in&r_by=1904615

 

Thanks! Want to support our work? MoveOn Civic Action is entirely funded by our 7 million members—no corporate contributions, no big checks from CEOs. And our tiny staff ensures that small contributions go a long way. Chip in here.

 

 

I think this would be a huge help to many folks who have no realistic hope of ever paying off student loan debt in their lifetime. Other than brining back the ability to discharge the debt in BK, this would have an immmediate impact.

 

One interesting fact is that this bill even has something for people with private loans. Not sure what forumula they'll use, but at least it's something.

 

To the people who subscribe to the thinking that you should pay what you borrow (no matter what the circumstances), what about adding a provision in the bill that would require you to work community service for any discharged debt? Something like 1 hour for every $50 in forgiven debt? So if you use their 10/10 plan, and still owed $10k, you would be required to do 200 hours community service in exchange for the forgiveness. This makes it less of a handout/bailout, and your local community benefits. I'm wondering what reaction people would have to this idea?

 

Also, here is the link to a basic breakdown of the bill in it's current form:

 

http://tinyurl.com/7akydbk

 

Make sure to sign the petition and spread the word! Getting close to 1 million signatures so far...

[RobEvans]

If this bill passes, it will cause interest rates for student loans to greatly increase, as lenders would be running a much greater risk of not getting their money repaid.

[arameth]

If this bill passes, it will cause interest rates for student loans to greatly increase, as lenders would be running a much greater risk of not getting their money repaid.

 

 

But the bill would cap rates for federal student loans at 3.4%. And I thought there are no more "middle men" involved in federal loans, and all are originated by the Dept. of Education now?

[slikk]

If this bill passes, it will cause interest rates for student loans to greatly increase, as lenders would be running a much greater risk of not getting their money repaid.

 

 

But the bill would cap rates for federal student loans at 3.4%. And I thought there are no more "middle men" involved in federal loans, and all are originated by the Dept. of Education now?

 

Will this new rate of 3.4% apply to past loans or the ones that are going to disbursed in future.

 

 

Sent from my futuristic phone using Tapatalk 2

[jph5125]

The wording about the 10/10 forgiveness looks like current loans, their interest, and fees can be forgiven entirely after qualifying payments. New borrowers (future college students) will only be forgiven for $45,520 plus all the interest accrued up to the day of forgiveness.

 

Any amount forgiven under 10/10 will not be subject to IRS tax.

 

This bill also has a provision to reduce Public Service Loan Forgiveness from 10 years to 5.

Edited May 5, 2012 by jph5125

[Repairerer]

BRB, going to go run up some student loans real quick.

[snowpuppy]

The wording about the 10/10 forgiveness looks like current loans, their interest, and fees can be forgiven entirely after qualifying payments. New borrowers (future college students) will only be forgiven for $45,520 plus all the interest accrued up to the day of forgiveness.

 

Any amount forgiven under 10/10 will not be subject to IRS tax.

 

This bill also has a provision to reduce Public Service Loan Forgiveness from 10 years to 5.

 

Crap! Where do I sign up??

 

I wasn't much interested until this popped up. I'm into yr #3 of PSLF.

 

The devil is always in the details.........

[snowpuppy]

BRB, going to go run up some student loans real quick.

 

That $45k provision is about that max in what an undergrad student can borrow for 4-5 yrs worth of education.

 

While it might reduce the total loan burden for those with Grad, Professional or Doctoral degrees, I think it will make students think twice about the "Lifetime Student" option most universities allow. Those are the students who enroll year after year to obtain degree after degree with no thought of their debt or their employment opportunities.

 

ITA that those struggling with Fed debt are less likely to purchase a home, car, etc.

[alexplantman]

OP is a new user... Is this a legit bill going on in our gov right now?

[alexplantman]

Well this won't work for those not in poverty, and owe a big balance on their student loans.

 

10% of your gross for 10 years; that's 120 payments.....

 

So, let's say you have a $60K student loan for higher education and earn $100K gross annually:

• 
   
  
• 10% = $10,000 annually or $833 / month. You would have it paid off before the 10 years.. So what's the point, in this case, other than a lower interest?
  

[snowpuppy]

OP is a new user... Is this a legit bill going on in our gov right now?

 

This is a legit bill. There is a link to the bill you can read.

[snowpuppy]

Well this won't work for those not in poverty, and owe a big balance on their student loans.

 

10% of your gross for 10 years; that's 120 payments.....

 

So, let's say you have a $60K student loan for higher education and earn $100K gross annually:

• 
   
  
• 10% = $10,000 annually or $833 / month. You would have it paid off before the 10 years.. So what's the point, in this case, other than a lower interest?
  

 

The bill will help low and moderate income earners after college as well as those entering public service. Police, Fire, Social work are notoriously underpaid. If you're earning $50k in public service and have a family to support you'd welcome the relief.

 

If you're earning $100k salary with $60k in loan debt, I don't think you'd need a bailout.

[alexplantman]

Well this won't work for those not in poverty, and owe a big balance on their student loans.

 

10% of your gross for 10 years; that's 120 payments.....

 

So, let's say you have a $60K student loan for higher education and earn $100K gross annually:

• 
   
  
• 10% = $10,000 annually or $833 / month. You would have it paid off before the 10 years.. So what's the point, in this case, other than a lower interest?
  

 

The bill will help low and moderate income earners after college as well as those entering public service. Police, Fire, Social work are notoriously underpaid. If you're earning $50k in public service and have a family to support you'd welcome the relief.

 

If you're earning $100k salary with $60k in loan debt, I don't think you'd need a bailout.

 

 

Hope the plan sinks then.. Would rather them allow to include in bankruptcy... Even with my score, I'd be filing tomorrow, lol

[tatersalad]

I hope they pass this bill. I signed it weeks ago.

[Robbio]

Well this won't work for those not in poverty, and owe a big balance on their student loans.

 

10% of your gross for 10 years; that's 120 payments.....

 

So, let's say you have a $60K student loan for higher education and earn $100K gross annually:

• 10% = $10,000 annually or $833 / month. You would have it paid off before the 10 years.. So what's the point, in this case, other than a lower interest?

 

The bill will help low and moderate income earners after college as well as those entering public service. Police, Fire, Social work are notoriously underpaid. If you're earning $50k in public service and have a family to support you'd welcome the relief.

 

If you're earning $100k salary with $60k in loan debt, I don't think you'd need a bailout.

 

 

Hope the plan sinks then.. Would rather them allow to include in bankruptcy... Even with my score, I'd be filing tomorrow, lol

 

 

Me too man, me too