topic Re: Student Loan Forgiveness Act of 2012 in Student Loans

Student Loan Forgiveness Act of 2012

CluelessCredit — Thu, 12 Jul 2012 19:10:55 GMT

Forgive me if this is not in accordance with the rules, but I thought many people in this forum would like to know about a bill that has been proposed before congress.

The Student Loan Forgiveness Act of 2012

I'll summarize some of the points: (lots of info taken from http://www.huffingtonpost.com/rep-hansen-clarke/student-loan-forgiveness_b_1454241.html )

1) The bill provides full loan forgiveness for current borrowers who have paid the equivalent of 10 percent of their discretionary income for 10 years or who are able to do so over the coming years. (so after 120 payments on the loan forgiveness is possible)

2) caps interest rates on federal student loans at 3.4 percent

3) allows many people to convert private loans into federal loans

4) unemployment and/or illness would be eligible to enroll in the new program

5) max loan forgiveness amount: $45,520 (new borrowers)

full loan amount (current borrowers) ***thanks to SyntheticMemories for info

To lend your support (or not) visit: http://hr4170.com/ Also, if you would like to send a letter to your congressman:

-go to opencongress.org

-click "Bills" button

-click "Most Viewed" button

-select H.R. 4170 Student Loan Forgiveness Act of 2012

-in the top right portion of the window you have the right to oppose or support

*once you enter your zip code it will automatically select the correct congressman and provide a generated document that you can mail with the click of a button for free.

Just for information sake,

Clueless

Re: Student Loan Forgiveness Act of 2012

Repo-ed — Wed, 04 Jul 2012 14:41:17 GMT

The DGF NEEDS this :smileyvery-happy: Only $76,200 left to go on her student loan!

Re: Student Loan Forgiveness Act of 2012

lolabelle — Wed, 04 Jul 2012 18:06:03 GMT

Numbers 2 and 3 would make me especially happy! There's something not quite right when my private variable interest rate loans are currently at a much lower interest rate than 2 of my fixed interest rate federal loans. I would love for them all to drop and to be able to consolidate them.

Re: Student Loan Forgiveness Act of 2012

SyntheticMemories — Fri, 06 Jul 2012 13:45:23 GMT

ACTUALLY:

On Number five:

(3) QUALIFIED LOAN AMOUNT- After the borrower has made 120 monthly payments described in paragraph (1), the Secretary shall forgive--

`(A) with respect to new borrowers on or after the date of enactment of the Student Loan Forgiveness Act of 2012, the sum of--

`(i) the balance of principal and fees due on the borrower's eligible loans as of the time of such forgiveness, not to exceed $45,520; and

`(ii) the amount of interest that has accrued on the balance described in clause (i) as of the time of such forgiveness; or

`(B) with respect to any other eligible borrower, the balance of principal, interest, and fees due on the borrower's eligible loans as of the time of such forgiveness.

So, if we're done...we qualify as B. At least, that's how I've read it, and seen other people understand it.

Basically, if we're done, we qualify for all of our debt after ten years of on time payments. But, if we are a new borrower on or after the date that this bill passes (hopefully), then you can only get forgivness for 45,520 after the ten years.

Re: Student Loan Forgiveness Act of 2012

SyntheticMemories — Fri, 06 Jul 2012 13:48:09 GMT

Understandable version:

http://hansenclarke.house.gov/sites/hansenclarke.house.gov/files/documents/1-pager%20SLFA.pdf

The bill in full: http://www.forgivestudentloandebt.com/content/student-loan-forgiveness-act-2012-hr-4170-bill-text

Re: Student Loan Forgiveness Act of 2012

aussiesareforever — Mon, 09 Jul 2012 02:23:43 GMT

Thank you. This will be a lifesaver for me if it goes through...I still owe over $70K. I signed the petition and encourage many other people to!!!

Re: Student Loan Forgiveness Act of 2012

GST2008 — Mon, 09 Jul 2012 13:20:47 GMT

I believe I read that if the bill passes, it also will affect the Public Service Loan Forgiveness Program as well. It should decrease the number of payments by half for those working in the public sector, making in five years (60 payments) for loan forgiveness versus the current ten (120 payments). This would be amazing considering I owe the Federal Government a Bentley :)

Re: Student Loan Forgiveness Act of 2012

webhopper — Wed, 11 Jul 2012 03:27:52 GMT

My student loans are 20k. Every year since 2006 ive paid in close to 30k in taxes. Its about time they used the money to do something that will benefit me. If they put an income restriction on it I will scream.

Re: Student Loan Forgiveness Act of 2012

lolabelle — Wed, 11 Jul 2012 14:49:56 GMT

webhopper wrote:
My student loans are 20k. Every year since 2006 ive paid in close to 30k in taxes. Its about time they used the money to do something that will benefit me. If they put an income restriction on it I will scream.

+1 on the scream. There's nothing more frustrating for me at tax time than the income caps on the student loan interest deduction. I pay a crap ton of money every year in interest on my student loans and can't claim a penny of it.

Re: Student Loan Forgiveness Act of 2012

Booner72 — Fri, 20 Jul 2012 02:35:40 GMT

I have three years in as a public employee. When i read this would change it to five years my stomach just lurched. that's like winning the lottery! PLEASE PASS THIS BILL!

Re: Student Loan Forgiveness Act of 2012

bornhuge — Wed, 25 Jul 2012 11:50:31 GMT

I owe a ton in student loans, but I'm not for legislation wiping out my student loand debt or anybody else's. We borrowed it, we should pay it.

Re: Student Loan Forgiveness Act of 2012

GST2008 — Wed, 25 Jul 2012 13:24:32 GMT

Booner72 wrote:
I have three years in as a public employee. When i read this would change it to five years my stomach just lurched. that's like winning the lottery! PLEASE PASS THIS BILL!

I second that!

Re: Student Loan Forgiveness Act of 2012

webhopper — Wed, 25 Jul 2012 14:22:09 GMT

bornhuge wrote:
I owe a ton in student loans, but I'm not for legislation wiping out my student loand debt or anybody else's. We borrowed it, we should pay it.

In ten years, most people have paid so much in interest that they have actually paid back more than what they originally borrowed. (I know I have)

Re: Student Loan Forgiveness Act of 2012

bornhuge — Wed, 25 Jul 2012 14:56:58 GMT

webhopper wrote:
bornhuge wrote:
I owe a ton in student loans, but I'm not for legislation wiping out my student loand debt or anybody else's. We borrowed it, we should pay it.

In ten years, most people have paid so much in interest that they have actually paid back more than what they originally borrowed. (I know I have)

Yeah, interest tends to cause people to pay back more than they borrowed. Interest is part of the game. It's not like anybody here signed up for a loan without having access to information about the interest rate. A lot of people have made very poor choices about borrowing money to finance educations that did not support salaries that would allow for repayment of thier loans. Would I rather see Washington bail out individuals struggling with student loan debt than banks? Yes. But, I'm not clamoring for a bailout of student loan borrowers because the government frankly can't afford it and it's more of a burden for everybody else that either didn't borrow or did, but paid back their loans as they agreed to.

Re: Student Loan Forgiveness Act of 2012

lolabelle — Wed, 25 Jul 2012 16:44:59 GMT

bornhuge wrote:
I owe a ton in student loans, but I'm not for legislation wiping out my student loand debt or anybody else's. We borrowed it, we should pay it.

This doesn't wipe out student loan debt for anyone. Even if this bill passes, as a federal employee, I would end up paying back most, if not all, of the principal amount that I borrowed. What it'll keep me from doing is what is right now my reality: paying back the amount that I borrowed 3-4 times over by the time I'm finally finished.

It's not "forgiveness," it's "relief" for people who need it - middle income people who pay all their bills but can never get ahead, and also don't get any assistance or qualify for the tax credits/deductions that are available to lower income people.

It would also be great for the economy.

Re: Student Loan Forgiveness Act of 2012

lolabelle — Wed, 25 Jul 2012 16:50:26 GMT

bornhuge wrote:
webhopper wrote:
bornhuge wrote:
I owe a ton in student loans, but I'm not for legislation wiping out my student loand debt or anybody else's. We borrowed it, we should pay it.

In ten years, most people have paid so much in interest that they have actually paid back more than what they originally borrowed. (I know I have)

Yeah, interest tends to cause people to pay back more than they borrowed. Interest is part of the game. It's not like anybody here signed up for a loan without having access to information about the interest rate. A lot of people have made very poor choices about borrowing money to finance educations that did not support salaries that would allow for repayment of thier loans. Would I rather see Washington bail out individuals struggling with student loan debt than banks? Yes. But, I'm not clamoring for a bailout of student loan borrowers because the government frankly can't afford it and it's more of a burden for everybody else that either didn't borrow or did, but paid back their loans as they agreed to.

This does't cost the government money. One can easily make the argument that it helps the government - inasmuch as a better economy helps the government.

Many, if not most, people feel they have no choice but to take out student loans. Our society has made an undergraduate degree imperative in most areas for even an entry-level position. Undergraduate degrees, even from state schools, are unaffordable without incurring debt for most people. In most places, to get "good" jobs without spending years and years and years working one's way up the ladder (if that's even a possibility... it's not always), one now needs a post-grad degree. What does that mean? More debt.

The government, private sector companies, and universities have created this predicament, but it's the individual that is bearing the cost. That doesn't sound quite right to me.

Re: Student Loan Forgiveness Act of 2012

GST2008 — Thu, 26 Jul 2012 12:05:49 GMT

The bill also allows the public sector to retain employees that would ultimately have to work in the private sector long-run to make enough money to pay off their student loans. If the current 10 year loan forgiveness program didn't exist, I would not be able to afford to work at the not-for-profit I am currently with. I factored in the money I would be saving in the long-run on my student loans when I decided to stay with the company after graduation. I could easily make 20% or more working in the private sector, but was able to keep a more rewarding job I liked because of the loan forgiveness.

Re: Student Loan Forgiveness Act of 2012

SCF — Thu, 26 Jul 2012 16:52:51 GMT

The harsh reality about student loans is that those payments are delaying young people marrying, starting families, establishing their own households, buying homes, etc., and all of those things are huge drivers of economic growth. We're already seeing declines in the type of purchasing caused by those activities, and it's having a negative impact on our economy. Doing something to solve that, even if it "bails out" some unworthy over-borrowers is good for the whole nation in the long-run.

BUT (and this is a big BUT), we also need to realize that this situation was created by a variety of factors and address them at the same time. Some people went to schoosl they couldn't afford for no good reason. Some people went to a 4-year school because they were told they had to, and really they needed a technical degree or aprrenticeship program to equip them for a good career. Schools have driven up tuition faster than anyone's savings could keep up, and the schools themselves need to retool and consider the return on investment they provide for their students.

This bill is a good start,and will do good things for everyone, but the impact will only be lasting if it's paired with efforts to keep borrowing reasonable, steer people toward affordable and appropriate programs, and have universities retool their programs to fit the modern economy and changing student needs. There will always be a place for brick & mortar 4-year degrees, but we need other options too, and young people need to know about them so they can make good choices.

Re: Student Loan Forgiveness Act of 2012

lolabelle — Thu, 26 Jul 2012 18:00:49 GMT

SCF wrote:
The harsh reality about student loans is that those payments are delaying young people marrying, starting families, establishing their own households, buying homes, etc., and all of those things are huge drivers of economic growth. We're already seeing declines in the type of purchasing caused by those activities, and it's having a negative impact on our economy. Doing something to solve that, even if it "bails out" some unworthy over-borrowers is good for the whole nation in the long-run.

BUT (and this is a big BUT), we also need to realize that this situation was created by a variety of factors and address them at the same time. Some people went to schoosl they couldn't afford for no good reason. Some people went to a 4-year school because they were told they had to, and really they needed a technical degree or aprrenticeship program to equip them for a good career. Schools have driven up tuition faster than anyone's savings could keep up, and the schools themselves need to retool and consider the return on investment they provide for their students.

This bill is a good start,and will do good things for everyone, but the impact will only be lasting if it's paired with efforts to keep borrowing reasonable, steer people toward affordable and appropriate programs, and have universities retool their programs to fit the modern economy and changing student needs. There will always be a place for brick & mortar 4-year degrees, but we need other options too, and young people need to know about them so they can make good choices.

+1,000,000

We do seriously need to revisit this "everyone needs to go to college!" mentality we've cultivated here in the U.S. The messaging starts in preschool, for goodness sake, and the design of even kindergarten standards of learning around this goal results in a curriculum that's stifling (for children and teachers), lacking in creativity, and does nothing to encourage the development of critical thinking. It's completely nonsensical and unnecessary... and, as you've said, unsustainable. It's like in trying to be the best in the world at everything, we've found ourselves winning the race to the bottom.

There is no reason in the world that everyone needs to go to college, and plenty of reasons many people should not. I imagine this will be even more the case for my son's generation, as the job paradigm of the future is likely to be less of an employer-employee model and more of an entrepreneurial/independent contractor model. I'm one of those stupidly over-educated people and, honestly, I'm hoping my son will choose a different path.

Re: Student Loan Forgiveness Act of 2012

bornhuge — Sat, 28 Jul 2012 09:07:28 GMT

Nobody is being asked to pay anything he or she did not agree to when they accepted the loan. I get it that paying back student loans is onerous, but that should not relieve someone from the contract he or she signed in accepting the loan in the first place.