Loan Reform

Two days ago, Representative Karen Bass of CA introduced a new bill, H.R.1330-The Student Loan Fairness Act.  It’s basically HR4170 from last year, reincarnated.  This bill basically implements a 10-10 repayment plan somewhat similar to Income Based Repayment.  That is 10 years of repayment at 10% of ones discretionary income.  It also allows borrowers with private student loans to convert their loans into federal ones to be included under this repayment plan.  It permanently lowers interest rates, which are set to increase again this summer.  Unlike all other repayment plans, H.R.1330 is retroactive.  It will look at the past 10 years of payments and if you have paid the equivalent of 10% of your discretionary income, your loans could be forgiven.

Image from StudentDebtCrisis.org

Last year, over 1 million signatures were gathered in support of the bill.  Please sign this new petition in support of HR1330 and share with your friends and family.  Robert Applebaum, of StudentDebtCrisis.org, the petition creator, is hoping to see 2 million signatures this year!  Please sign and share!

So far H.R1330 has 35 co-sponsors already!  Karen Bass also allows you to become a citizen co-sponsor.

She’s asking anyone with student loans to “Sound off on student loan debt” and take her brief survey.  I imagine she’ll do good things with the statistics.

The Consumer Financial Protection Bureau is also taking suggestions on how to improve private student loan repayment.  It’s important  for anyone with private student loans to chime in!  Feel free to plug H.R.1330, H.R.532-The Private Student Loan Bankruptcy Fairness Act, and S.114-Fairness for Struggling Students Act into your suggestions!

Also, it’s vital that each and every one of us contact our local representatives. They are there to represent us. Let them know which bills are important to you! Expect canned replies if all you can do is email.  Phone calls and in-person interviews (notice that’s in plural form!) are the best way to get through to your reps!

PERSONAL  UPDATE

This past week was a bad week for me.  I was having some stomach/digestive issues and turned into a lazy sack of potatoes.  I didn’t get much done and we’re still apartment hunting to make sure we find the best possible match for us.  So far, the apartment we had recommendations for is the cheapest but it also has the most cons.  I was ready Monday morning to go in with the paperwork and a money order to get our apartment secured and get the 30 day notice out of the way but my husband expressed concern that we should keep looking.  I’m still looking and comparing and hopefully we will have secured a place by the end of this week so I can still turn in our 30 day notice with April rent.

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2 thoughts on “Loan Reform

    • I think it’s awesome too! I especially like the retroactive part about it. So many people have already paid 2-5 times what they originally borrowed…and STILL owe $10s of thousands! It’s usury! It’s nice that people are talking about this issue but conversation isn’t enough! Last year over 1 million petitions were delivered to the house and they sat on it. We need people to get active and contact their congresspersons to make change happen!

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