I don't believe this has much of a chance of being passed, and seems to me like a congressman fluffing up his resume for elections. For individuals, this would be great as I'm all for taking advantage of the government's misjudgment. Economically, I don't feel this is a step in the right direction. In the last 50 years or so there has been a HUGE boom in people going to college. For us young adults, we have been told all our lives that college was the key to success. This may have been true back in the day when a college graduate was a rarity. Now that basically everyone is graduating college (due to the mindset that you NEED a degree,) a college degree is becoming more and more meaningless.
Student loan forgiveness, sounds great and all but what does it mean for us?
- Reduced payments for those experiencing economic hardship - Basically, the Student Loan Forgiveness Act means that for those struggling in today's economy, you can potentially have your federal student loan payment reduced to 10% of your monthly income and provide forgiveness after 10 years of payment (referred to as the 10/10 plan).
- Reduced interest rates for new borrowers - H.R. 4170 will make new federal loans more affordable to prospective students. The bill would set the interest rate cap on federal loans to 3.4 percent, which is half of the current rate at 6.8. In my opinion, for those who want to go to school but have no way of affording it, this would be great. For the country as a whole, not so much.
- Cuts the payments public service employees need to make - Those working in public service would have their required payments cut in half (from 120 to 60) that they need to make before their debt is forgiven.
- Converts private loans to Federal loans - Lastly, HR4170 (if passed) will allow borrowers to consolidate their private loans into a federal loan. Article Source: http://EzineArticles.com/7106644 Student Loan