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Student Loan Fairness Act (HR 1330)

woolfe9998

Lifer
Apr 8, 2013
11,820
6,269
136
You should try summarizing this proposed legislation if you want people to sign a petition. Your link explains the problem but says nothing about how the bill seeks to solve it.
 

Londo_Jowo

Lifer
Jan 31, 2010
17,304
158
106
londojowo.hypermart.net
Here's the summary for the proposed bill.

Summary

This new legislation will be a combination of two bills from the 112th Congress: Rep. Hansen Clarke's Student Loan Forgiveness Act (H.R. 4170), as well as The Graduate Success Act (H.R. 5895).

This legislation would establish a new “10-10” standard for student loan repayment as the new standard repayment plan. In the “10-10” plan, an individual would be required to make ten years of payments at 10% of their discretionary income, after which, their remaining federal student loan debt would be forgiven.

The Student Loan Fairness Act would also combat crushing interest rates of public and private loans by capping federal interest rates at 3.4% and allowing existing borrowers whose educational loan debt exceeds their income to convert their private loan debt into federal Direct Loans, then enrolling their new federal loans into the 10/10 program.

This bill works to jumpstart the economy and adds to the public service workforce by rewarding students who enter public service professions and work in underserved communities with a reduced period for loan forgiveness.

The Student Loan Fairness Act also sends a lifeline to student borrowers who have fallen on difficult times. The bill seeks to ensure that no one will be pushed into poverty because of illness or loss of their job and extends interest-free deferments to unemployed borrowers of unsubsidized federal student loans and those enrolled in the “10-10” repayment plan. It also seeks to replace the current, 10 year “Standard Repayment Plan” for the full amount of the loan balance with the “10-10” plan as the default repayment option for borrowers entering repayment.

The final component of the legislation promotes financial responsibility in higher education and incentivizes students to be mindful of educational costs and for colleges and universities to control tuition increases.
 
Apr 27, 2012
10,086
58
86
Just took a quick read and essentially you want more government involvement? I cant support this and you ought to be ashamed of yourself for suggesting this.

What we need is for the government to get out of the student loans and stop making education so expensive.
 

monovillage

Diamond Member
Jul 3, 2008
8,445
0
0
You borrow it, you pay it back. Don't like it? Don't borrow the money in the first place.

One thing to look at is why the cost of college education is so damn high? Why? What can be done to bring the costs down?
 

Wreckem

Diamond Member
Sep 23, 2006
9,058
435
126
I am all for it. Lowers Public Loan Forgiveness to 5 years.

However, its not going to get out of committee, let alone come close to passing.

Certain things in it should be considered and eventually passed.

Interest rates should be lowered.
Student Loan forgiveness shouldn't be included in gross income.
Interest free deferment for period of unemployment.
 
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Apr 27, 2012
10,086
58
86
You borrow it, you pay it back. Don't like it? Don't borrow the money in the first place.

One thing to look at is why the cost of college education is so damn high? Why? What can be done to bring the costs down?
This is the problem with many people since they have the entitlement mentality.
 

techie81

Senior member
Feb 11, 2008
342
0
76
You borrow it, you pay it back. Don't like it? Don't borrow the money in the first place.

One thing to look at is why the cost of college education is so damn high? Why? What can be done to bring the costs down?
I agree, we need to stop bailing people out who make poor decisions. I knew exactly what I was getting into with my student loans.
 

nehalem256

Lifer
Apr 13, 2012
15,670
6
0
This legislation would establish a new “10-10” standard for student loan repayment as the new standard repayment plan. In the “10-10” plan, an individual would be required to make ten years of payments at 10% of their discretionary income, after which, their remaining federal student loan debt would be forgiven.
So you could take out massive loans for a degree that cannot repay the loan and then get to not pay back the loan.

Fairness?????????
 

sunzt

Diamond Member
Nov 27, 2003
3,079
3
76
Just took a quick read and essentially you want more government involvement? I cant support this and you ought to be ashamed of yourself for suggesting this.

What we need is for the government to get out of the student loans and stop making education so expensive.
The other side of the coin is that we have the largest amount of top universities in the world because of the high tuition they charge which feeds their research, faculty, and facilities.
 

monovillage

Diamond Member
Jul 3, 2008
8,445
0
0
I agree, we need to stop bailing people out who make poor decisions. I knew exactly what I was getting into with my student loans.
So did I and so did my daughter and son and daughter-in-law. My main gripe is the local college and Universities spend money on non-essential crap and educating students has become a low priority for them.


*EDIT*
The other side of the coin is that we have the largest amount of top universities in the world because of the high tuition they charge which feeds their research, faculty, and facilities

BINGO!
 

shortylickens

No Lifer
Jul 15, 2003
76,577
9,703
126
Once again, liberals and conservatives clearly have a different view of what constitutes "fair".
 

jaedaliu

Platinum Member
Feb 25, 2005
2,671
1
0
How does it differ from the current income-based repayment system? (other than forgiveness after 30 years) Why is it incumbent on the other taxpayers to pay off the loans of people that decided to pay a lot for a degree that they aren't planning on using to make money with?
 

shortylickens

No Lifer
Jul 15, 2003
76,577
9,703
126
So did I and so did my daughter and son and daughter-in-law. My main gripe is the local college and Universities spend money on non-essential crap and educating students has become a low priority for them.
If yur talking about sports, that brings in money and keeps tuition down.
 

Wreckem

Diamond Member
Sep 23, 2006
9,058
435
126
I agree, we need to stop bailing people out who make poor decisions. I knew exactly what I was getting into with my student loans.
But yet we bailed out the banks.

The bursting of the student loan bubble will cause economic problems.

10-10 is probably too favorable.

They should just tweak the current system(which is 20-10 or 25-15) by making it not count towards gross income when the debt it forgiven.
 

jaedaliu

Platinum Member
Feb 25, 2005
2,671
1
0
The other side of the coin is that we have the largest amount of top universities in the world because of the high tuition they charge which feeds their research, faculty, and facilities.
Nah. grants fund the research. And the support costs are included as part of the overhead for the grant. I can't remember which school, but one has an overhead cost of 100% (if you ask for $100k as a research grant, you're really asking for $200k to help pay the other costs.)
 

Nintendesert

Diamond Member
Mar 28, 2010
7,761
5
0
First we need to cap loan amounts to 10% of a person's earning potential over a 10 year period. That way doctors can take big fat loans and so could lawyers while people doing basket weaving or social work can only take smaller loans and go to more affordable schools. Going to an Ivy League school to be a social worker isn't required.

Capping the loan amounts would also force schools to lower tuition prices if they want to keep kids at the school.

It's just like the rental places around military bases, they are all usually set to the amount of the BAH service members receive each month to pay rent. Right now schools are setting their tuition rates through the roof because the faucet on loans is never ending.
 

Wreckem

Diamond Member
Sep 23, 2006
9,058
435
126
If yur talking about sports, that brings in money and keeps tuition down.
Sports do not keep tuition down, well atleast not for non athletes. Most schools don't have athletic departments that cover all their costs. Not even all of DI does, it wasnt that long ago that Texas A&M had to borrow a large chunk of money from the academic side.

The schools that have profitable athletic departments keep the money inside athletics.
 
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ElFenix

Elite Member
Super Moderator
Mar 20, 2000
101,018
4,763
126
Sports do not keep tuition down, well atleast not for non athletes. Most schools don't have athletic departments that cover all their costs. Not even all of DI does, it wasnt that long ago that Texas A&M had to borrow a large chunk of money from the academic side.

The schools that have profitable athletic departments keep the money inside athletics.
UT pays a dividend to the academic side. also it's easier to raise money from happy drunk boosters following football games. or so the story goes.
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,599
4
0
If yur talking about sports, that brings in money and keeps tuition down.
Bull

Example: tuition at UF/FSU which have a decent athletic program is higher than USF, UCF, FAU, etc which have no strong athletics.

Why?
 

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