The Student Loan Fairness Act of 2019
We need a fair and simple federal student loan repayment system which seeks to alleviate the financial burden of student loan debt on college graduates and support them as they begin their careers and lives. By creating an equitable system to ease student loan debt, we can lessen the financial impact on the next generation while jumpstarting the economy, creating jobs and promoting financial responsibility for higher education.
"I believe that it is shameful that in this day and age, students are deprived access to their dreams because of their debt. 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."
- Rep. Karen Bass, March 2019
What Rep. Bass Is Doing About It:
The Student Loan Fairness Act of 2019 addresses this 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.
In March of 2019, Rep. Bass hosted a legislative discussion on student loan debt reform. You can find her Student Loan Resource Guide here.
How To Help:
Your support for this effort is vital to its success, which is why we are launching a citizenship cosponsorship program so that you can voice your support for this piece of legislation. To learn more about the bill and submit your support, fill out the below form: