Student Loan Forgiveness Act of 2012

[Lesa]

Can someone please post an understandable version of this Act? I think there are many here that want to know exactly how they can benefit from this bill. Thank you.

[Tracy Winters]

Here’s a short summery

The bill has been put before the congress, but has not passed yet. Here are its main points:

1. The bill provides full loan forgiveness for current borrowers who have paid the equivalent of 10 percent of their discretionary income for 10 years or who are able to do so over the coming years.
   what this means is that after 10 Yrs (i.e.120 payments on the loan) forgiveness is possible.
2. The bill caps interest rates on federal student loans at 3.4%.
3. The bill allows many people to convert private loans into federal loans.
4. The bill sets the maximum loan forgiveness to $45,520 for new borrowers and full loan forgiveness to current borrowers.
5. Unemployment and/or illness would be eligible to enroll in the new program.

Here are some useful links:
The bill’s congress site: The Student Loan Forgiveness Act of 2012

The bill text in full, or an Understandable PDF version

[Jill]

It will affect the Public Service Loan Forgiveness Program as well

To my understanding, , It should also decrease the number of payments by half for those working in the public sector, making loan forgiveness pliable in five years (60 payments) versus the current ten (120 payments).

[Author]

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