Earlier today, I signed a petition for the passage of the Student Loan Forgiveness Act of 2012, and I’d like to encourage you to do the same. The bill, introduced by Michigan representative Hansen Clarke, is designed to help struggling student borrowers.
Here are some key provisions of H.B. 4170:
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 reward graduates for entering public service professions like teaching and firefighting. It would also provide incentives for medical professionals to work in under-served communities. It would reduce the Public Service Loan Forgiveness requirement to 5 years from its current 10 years.
Most importantly to me,
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.
I can’t begin to tell you how much that would help me (and thousands of others like me). I hope you’ll take a minute and add your name to the signon.org petition urging the passage of this bill.