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I haven't seen anything on the forums about this topic. I used the search function, but alas nothing.
Basically, a rep from Michigan has come forward to recognize the student debt problem and has drafted a solution. You can find it here :
Sign the Petition
Basics:
-The bill would create a new “10-10 standard” for student loan forgiveness.
If you make payments equal to 10% of your discretionary income for 10 years, your
remaining federal student loan debt would be forgiven.
- If you have already been making payments on your student loans, your repayment
period would likely be shorter than 10 years. The amount you have already paid on
your student loans over the past decade would be credited toward meeting the
requirement for forgiveness.
- The bill would ensure low interest rates on federal student loans by capping them at 3.4%.
- The bill would allow existing borrowers whose educational loan debt exceeds their income
to break free from the crushing interest rates of private loans by converting their private
loan debt into federal Direct Loans, then enrolling their new federal loans into the 10/10
program.
- The bill would reward graduates for entering public service professions like teaching and
firefighting. It would also provide incentives for medical professionals to work in
underserved communities. It would reduce the Public Service Loan Forgiveness
requirement to 5 years from its current 10 years.
View Full: Full Bill
What do you guys think? You should sign the petition if you're for it, but open dialogue about it would be cool as well.
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i dont like it. no one forgave my parents student loans that they spent years working off, so why does anyone else deserve it? balderdash.
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I have no idea how to even respond to that.
Like.. really? I don't...
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On April 18 2012 09:20 sc2superfan101 wrote:
i dont like it. no one forgave my parents student loans that they spent years working off, so why does anyone else deserve it? balderdash.
Well considering the entire system is built around fucking over students in every way possible, yeah.
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when you say loan forgiveness, what you really mean is let the government pay for it, which means increase the debt or increase taxes. i am opposed to increasing the debt, and i am opposed to increasing taxes to pay off something that people voluntarily and privately incurred.
i really dont understand why people can get away with such horrible ops btw. here is the official summary of the law:
Official Summary
The following summary was written by the Congressional Research Service, a nonpartisan arm of the Library of Congress, which serves Congress. GovTrack did not write and has no control over these summaries.
3/8/2012--Introduced.
Student Loan Forgiveness Act of 2012 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to establish a 10/10 Loan Repayment Plan that allows borrowers of Federal Family Education Loans (FFELs) and Direct Loans (DLs) to limit their monthly payment on such loans to one-twelfth of 10% of the amount by which their adjusted gross income and that of their spouse (if applicable) exceeds 150% of the federal poverty level. Requires the Secretary of Education to determine a borrower's repayment obligation under that plan on a case-by-case basis if the repayment formula would result in the borrower paying nothing and the borrower is not in deferment due to an economic hardship. Establishes a 10/10 Loan Forgiveness Program that provides FFEL and DL forgiveness to borrowers who, after the date that is 10 years before the date of this Act's enactment, have made 120 monthly payments under the 10/10 Loan Repayment Plan or under another repayment plan that required them to make payments at least as large as those they would have made under the 10/10 Loan Repayment Plan. Credits the months during which an individual is in deferment due to an economic hardship as months for which payment was made for purposes of the 10/10 Loan Forgiveness Program. Caps the amount of loan forgiveness that the program will provide to individuals who become new borrowers after this Act's enactment. Caps the interest rate on new DLs at 3.4% Amends the public service employee loan forgiveness program to forgive the DLs of participants who have made 60 (currently, 120) monthly payments on such loans pursuant to specified repayment plans. Includes primary care physicians in medically underserved areas in the public service employee loan forgiveness program. Allows certain borrowers to consolidate their private education loans as Direct Consolidation Loans, provided the private loans were made on or before the date of this Act's enactment. Limits such borrowers to those who: (1) were students eligible for unsubsidized Stafford loans or PLUS loans under the FFEL or DL programs for their enrollment at an institution of higher education, or would have been had they been enrolled on at least a half-time basis; (2) borrowed at least one private education loan for such enrollment; and (3) have an average adjusted gross income that does not exceed their total education debt. Caps the interest rate on those Direct Consolidation Loans at 3.4% Requires borrowers to apply for such loans within one year of this Act's enactment. Funds this Act's programs from funds available for Overseas Contingency Operations.
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It's not anything *I* mean, lol.
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United States7483 Posts
On April 18 2012 09:20 sc2superfan101 wrote:
i dont like it. no one forgave my parents student loans that they spent years working off, so why does anyone else deserve it? balderdash.
Oh look, someone's parents didn't have an issue dealing with it, clearly that must mean everybody should be able to deal with it.
Really? That's your argument?
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Ah, here's a nice little infograph on the state of current student loans. Warning, it's pretty large.
+ Show Spoiler +
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I don't like it either. Last time I read it, it only forgives the debt of those not earning beyond a certain threshold. What's the point of making bad decisions consequence free and penalizing those that are successful? If anything, they should simply make student loans harder to receive. Too many people see it as free money and gobble up as much as they can.
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On April 18 2012 09:20 sc2superfan101 wrote:
i dont like it. no one forgave my parents student loans that they spent years working off, so why does anyone else deserve it? balderdash.
How's that an argument? The previous generation didn't have it therefore we shouldn't? No one gave my great great grandmother the right to vote so why should my mom have it, right?
Don't just be anti-progress for the sake of it.
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It's election season, gotta open up those coffers.
I'm pretty sure the government doesn't have some huge revenue stream that doesn't involve taking people's money. "Forgiving debt" is just another way of saying "Let's make someone else pay it."
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A real solution would be to offer free college education considering you can obtain the same education using free resources via internet, but that would never happen so I agree with this. College is way too expensive as it is and many studies to show that sometimes it's more expensive to obtain a degree in the long run and just not worth it.
Personally I am not going to college because I feel it is a waste of money and it's only real benefit is it could potentially land me an entry level postion with great ease.
Student debt is a real big issue though and it does need to be adressed.
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On April 18 2012 09:20 sc2superfan101 wrote:
i dont like it. no one forgave my parents student loans that they spent years working off, so why does anyone else deserve it? balderdash.
I think the idea is, that they should have forgiven them and they are moving to make things right for this generation... See ideologies like this are incredibly close minded.
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United States7483 Posts
On April 18 2012 09:25 acerockolla wrote:
I don't like it either. Last time I read it, it only forgives the debt of those not earning beyond a certain threshold. What's the point of making bad decisions consequence free and penalizing those that are successful? If anything, they should simply make student loans harder to receive. Too many people see it as free money and gobble up as much as they can.
Our goal as a society should be to make education as accessible as possible for everyone, not harder. There has to be a better way to do it than making loans harder to obtain -_-.
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From the link that was posted:
+ Show Spoiler +
Make student loan repayment both simple and fair
o The bill would create a new “10-10 standard” for student loan forgiveness.
->If you make payments equal to 10% of your discretionary income for 10 years, your remaining federal student loan debt would be forgiven.
-> If you have already been making payments on your student loans, your repayment period would likely be shorter than 10 years. The amount you have already paid on your student loans over the past decade would be credited toward meeting the requirement for forgiveness.
o The bill would ensure low interest rates on federal student loans by capping them at 3.4%.
o The bill would allow existing borrowers whose educational loan debt exceeds their income to break free from the crushing interest rates of private loans by converting their private loan debt into federal Direct Loans, then enrolling their new federal loans into the 10/10 program.
o The bill would reward graduates for entering public service professions like teaching and firefighting. It would also provide incentives for medical professionals to work in underserved communities. It would reduce the Public Service Loan Forgiveness requirement to 5 years from its current 10 years.
Americans who are behind on their payments would be eligible to enroll in the new program and bring their payments down to 10% of discretionary income.
While current borrowers would be eligible for full forgiveness under the plan, future borrowers would be subject to a $45,520 cap on forgiveness (based on the average overall cost of a four-year degree at a public university). The aim is to incentivize students to be mindful of educational costs and for colleges and universities to control tuition increases.
o Provisions of the bill itself would be financed by projected savings from Iraq and Afghanistan Overseas Contingency Operations; the bill would not affect funding for existing student aid programs.
This is now just me paraphrasing.
The bill is balanced by taking in from savings from the Iraq and Afghanistan Overseas Contingency Operations; so the money that would be funded the war would be funded into student debt. [Not sure what the Iraq and Afghanistan Overseas Contingency Operations is.] Current student loans can be forgiven completely, but a cap of $45,520 for future students borrowers.
If students make payments equal to 10% of their discretionary income for 10 years, then the remaining debt is forgiven. Graduates who enter public service professions would only have to pay 10% for 5 years.
Interest rate for student loans would be frozen to 3.4%.
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Eh. Colleges are filled with people who shouldn't be there. That's their problem. I hope they don't forgive the loans, so the next generation won't get flooded with degrees who's value just keeps going lower and lower because everyone and their cat has a bachelors.
For everyone saying "we need education to be every more accessible" it's called the internet, books and personal ambition. You can learn SO much now even if you don't go to college as long as you're willing to take the time. You never stop learning if it's what you love.
Going to college doesn't make you smarter, it just means you can jump through hoops.
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I agree, i had financial aid and shit help me in college, but i had a scholarship, as well as others who have spent a large portion of their adult life paying off these loans, why is this coming into play now? Because a ton of people went to college thinking they'd get a free job out of it and then did nothing with themselves to pay it off? I guess we should do this for all home loan owners, and business loan owners too, and just absorb the debt into the government, and then further screw our economy.
I'm a liberal and I think this is going about it the wrong way. Lower tuition rates, cut the ridiculous salaries of faculty (not necessarily professors, but there's a LOT of bloat in university administrations) and provide incentives for people to NOT go to college if they aren't ready for it, or aren't even looking for a job that will help them from it by turning them towards other ways of further education or jobs. Like does the girl who ends up being a manager at mcdonalds or nordstrom really need to get a business degree? Wouldn't she have been better off studying at a vocational school for food services?
The education system right now is broken, and letting people escape the system without correcting it for free, is moronic.
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On April 18 2012 09:25 Djzapz wrote:Show nested quote +On April 18 2012 09:20 sc2superfan101 wrote:
i dont like it. no one forgave my parents student loans that they spent years working off, so why does anyone else deserve it? balderdash. How's that an argument? The previous generation didn't have it therefore we shouldn't? No one gave my great great grandmother the right to vote so why should my mom have it, right? Don't just be anti-progress for the sake of it.
so me saying they shouldn't ask my parents, who paid their own loans, to pay for everyone elses loans, and that somehow makes me anti-women's suffrage? i would ask what the fudge you're talking about, but i'm not sure you even know the answer to that question.
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On April 18 2012 09:22 Candadar wrote:Show nested quote +On April 18 2012 09:20 sc2superfan101 wrote:
i dont like it. no one forgave my parents student loans that they spent years working off, so why does anyone else deserve it? balderdash. Well considering the entire system is built around fucking over students in every way possible, yeah.
well then maybe we should change the system instead of fucking over everyone who isn't a student in every way possible as compensation.
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it's also stupid for responsible individuals who saved up money for their kids educations, and sent them to college and paid for them in full, what about them? Will this loan retroactively give them back money for being financially stable?
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EPT![[image loading]](http://i.imgur.com/B1Gs7.jpg)
