Student Loan Forgiveness Act of 2012

[CluelessCredit]

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

[Repo-ed]

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

[lolabelle]

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.

[SyntheticMemories]

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. 

[SyntheticMemories]

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

[aussiesareforever]

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!!!

[GST2008]

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

[webhopper]

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.

[lolabelle]

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@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.

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+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.

[Booner72]

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!