Bummed About Your Student Loans? Help Might Be On The Way

Read more: Bummed About Your Student Loans? Help Might Be On The Way · NYU Local

Bummed About Your Student Loans? Help Might Be On The Way

By Raj Sidhu on March 22nd, 2012  (9 hours ago)

NYU- Student debt is projected to reach $1 trillion in 2012, officially exceeding  the national credit card debt – such are the findings of H.R.4170, or the Student  Loan Forgiveness Act of 2012. Proposed by Representative Hansen Clarke  (D-MI), the bill seeks to ease the absurd burdens of excessively high tuition  costs placed on U.S. students – costs that Clarke believes are “impeding  economic growth” and stifling entrepreneurship.

True to its name, the bill attempts to extend debt forgiveness to graduates  who make loan payments of at least 10% of their adjusted gross income for 10  years – that’s a pretty sweet deal if you ask us, considering NYU’s penchant for  pricey education. The legislation comes at a time when tuition rates have soared nation-wide  and grant funding has almost completely stagnated in the wake of a  still-crippled economy, and students are placed in the awkward position of  accruing massive amounts of debt in order to get a job-getting degree.

Some of the finer print of the bill shows that students heading into the  public sector are eligible for even further debt reductions, debts can become  void upon bankruptcy, and the maximum amount of debt that can be waived is  around $42,000 – a full year at NYU for some undergraduates.

The bill sounds too good to be true, and in all likelihood it probably is – the chances of it passing a Republican-controlled Congress are slim at best,  especially when Senator Paul Ryan’s recent plan to slash over $5.3  trillion in safety-net spending was received magnanimously by Republican  leadership.

However awareness of the issue of student debt is spreading rapidly, and  Democrats are pushing for a Senate version of the bill, Fairness  For Struggling Students Act (S.1102). The average cost of higher education  in the U.S. far exceeds those of the rest of the world, and has lead to a  climate that discourages entrepreneurship and risk-taking from educated  graduates. “Higher education should be viewed as a public good benefitting our  country,” writes Clarke, “Rather than as a commodity solely benefiting  individual students.”

No arguments there, Representative. No arguments there.

Read more: Bummed About Your Student Loans? Help Might Be On The Way · NYU Local

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2 responses to “Bummed About Your Student Loans? Help Might Be On The Way

  1. Great article. You got my follow, mind following me back?

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