We all know outstanding student debt is a big problem in USA which is currently around at $1 trillion and rising. The Student Loan Forgiveness Act is designed to help students who are struggling to repay college loans and therefore gaining popularity. Now the act, has reached over a million signatures on the petition website signon.org.
The legislation is designed to lend a helping hand to those struggling under massive amounts of student loan debt. You can find a brief summary of H.R. 4170’s main provisions here.
There has been many confusions about the act. Many different kinds of student loans can be confusing and loan consolidation exemplifies this confusion.
The Act would forgive student loan for those who have paid 10% 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. Some people may have their loan forgiven only after 5 years if they are working in areas including teaching, public services and practice medicine in undeserved areas.
The forgiven debt would not be counted as taxable income and candidate would still qualify for enrollment in the program if he/she is unemployed
or become unemployed.
If you are interested in knowing more about the act, then you should check the FAQ section here [PDF].