The Student Loan Forgiveness Act of 2012 (H.R. 4170)
A new bill has been introduced in the House of Representatives by Congressman Hansen Clarke that could bring a much welcome respite to students saddled with considerable educational debt.
From the Congressman's press release regarding this bill:
"This bill would amend the Higher Education Act of 1965 by giving borrowers the option to enter the 10/10 loan repayment plan. Borrower’s discretionary income will be defined as any annual income exceeding 150 percent of the poverty line for an individual or family. This bill would also allow graduates who enter public service professions, such as teachers and first responders, to have their loans forgiven in five years instead of ten as well as cap interest rates on federal loans at 3.4 percent."
You can watch Rep. Hansen introduce the bill here:
Isaac Bowers, senior program manager in the Communications and Outreach unit at Equal Justice Works has a nice summary write-up of the bill here. A one-page summary of the bill is here; the full text can be accessed here.
Although the bill is still very much in its infancy stages, its passage could mean a very welcome lightening of the load for many college and grad school grads struggling to service their loans and make ends meet.