Student Loan Forgiveness Act 2012

Posted on April 19, 2012 by

Is this new proposed solution just another bailout, or a legitimate way out? U.S. Representative Hansen Clark (D-Mich) has introduced a bill that would forgive student loan debts after 10 years.

From the Huffington Post:

On Tuesday, U.S. Rep. Hansen Clarke (D-Mich.) joined students from a classroom in Detroit to discuss his plan to ease student loan debt. Taking advantage of Google’s video conferencing service Google+ Hangout, Clarke explained the details of his Student Loan Forgiveness Act of 2012 to a physical audience at Wayne State University, as well as a virtual one comprising students from across Michigan and the country.

H.R. 4170 would forgive student loan debt for those who have paid 10 percent of their discretionary income toward their loans for 10 years and would cap interest on federal student loans at the current rate of 3.4 percent. Individuals who go into teaching, public service or practice medicine in underserved areas would have their debt forgiven after only five years.

Clark says student loan debt has turned the American dream into a nightmare for far too many college graduates:

“Everyone tells us to go to school and work hard and we’ll be rewarded for our dedication,” Clarke said Tuesday. “But the promise of a dream can turn into a nightmare for so many people.”