Rep. Bass Introduces Student Loan Fairness Act
"I believe that it is shameful that in this day and age, students are deprived access to their dreams because of their debt," said Congressmember Bass. "At this very moment, more than 43 million U.S. student borrowers collectively owe $1.4 trillion and counting in student loans. That’s millions unable to buy their first car; millions more unable to buy their first home – millions of dreams on hold until their debt is repaid."
The Student Loan Fairness Act of 2019 addresses the student loan debt crisis head-on in three major ways:
- A New “10-10” Standard: Changes the law so that if you are still paying off your debt after making ten years' worth of payments at 10% of your discretionary income, your remaining federal student loan debt would be forgiven.
- Capping The Interest Rate: Caps federal interest rates at 3.4% and allow existing borrowers whose educational loan debt exceeds their income to convert their private loan debt into federal Direct Loans and then enroll their new federal loans into the 10/10 program.
- Accounting For Cost Of Living: Requires the Department of Education to incorporate regional variation in the cost of living into monthly student loan payment amounts.
Learn more here.