H.R.4170 - Student Loan Forgiveness Act of 2012

To increase purchasing power, strengthen economic recovery, and restore fairness in financing higher education in the United States through student loan forgiveness, caps on interest rates on Federal student loans, and refinancing opportunities for private borrowers, and for other purposes. view all titles (2)

All Bill Titles

  • Official: To increase purchasing power, strengthen economic recovery, and restore fairness in financing higher education in the United States through student loan forgiveness, caps on interest rates on Federal student loans, and refinancing opportunities for private borrowers, and for other purposes. as introduced.
  • Short: Student Loan Forgiveness Act of 2012 as introduced.

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Displaying 1-30 of 63 total comments.

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Kickedout 01/22/2013 6:28pm

Time to pay up for what you owe! This is what is wrong with this generation, no one feels they are responsible for their actions and decisions .

toray99 01/01/2013 12:37pm
in reply to StrawberryFields Mar 21, 2012 10:48pm

Then start going after professor salaries. Colleges that keep building new wings all the time.

toray99 01/01/2013 12:32pm
in reply to Flash Mar 21, 2012 9:38am

No kidding , I agree with you. There is no shame with americans anymore. I remember when a handshake would seal a deal. Now the progressives have people reneging on contracts. They go to college for art and basket weaving, then expect to be making 70 grand a year. Not my , nor the rest of the paying publics problem. You eat it !

NGoyette 11/27/2012 1:34am
in reply to tphill Mar 26, 2012 12:45am

I may not want the government paying for your bridges, but, I might one day need to drive over them, and not know it yet. Yours is a logical fallacy. You want the nurse or doctor that treats you when you might die from a car accident, to be exhausted from having to work extra hours, while taking care of their families, to pay back unreasonable loan rates when they are attempting to save your life? I would guess no. Again, the govt is not trying to give anybody anything free and clear, they are trying to set reasonable rates and make them standard, so you aren’t paying an ever expanding bill. They are trying to make it so that the bill you signed up to pay, is the bill you pay. Also, in terms of contracts, the thing about contracts is, that the economy can change what they mean, and when the economy tanks because of irresponsible folks that can’t pay back the real debt (banks, wall street) you can’t rescind your signature. America is not separate, we are us and them, join us.

NGoyette 11/27/2012 12:02am
in reply to Flash Mar 21, 2012 9:38am

Truly has no e in it. It is difficult to pay student loans back however, I support this bill. You sir are making a blind argument. This bill does not create a world in which you do not have to pay, it means you pay at reasonable rates without being abused by the private financial system. A system that proves over and over again that is criminally abuses our capital at our expense. It is a system that uses our payments and investments of all kinds as gambling money and hikes the rates for their playtime fun, when they make mistakes. Here are some basic economics and just well, a reflection that some of us read the legislation; capping an interest rate at 3.5% is in no way a handout. Do the math if indeed you have a degree. Your argument has no substance.

pernition 11/16/2012 4:34am
in reply to Flash Mar 21, 2012 9:38am

Dearest Flash, your remark is infantile regurgitation in the plain style of sucker simple. You suggested to whomever claimed to be duped, they should go on ahead and pursue those who had done the duping.

Think really really really hard for a minute and try your darnedest to imagine a hybrid game play of the classic “Ten Thousand Puzzle Piece Dominoes Chutes & Ladders Monopoly Train Set.” Once you understand that game theory, you’ll quickly adjust your mind so long as logic and reason carry some weight with you.

briannak 11/14/2012 11:10am
in reply to briannak Nov 14, 2012 11:08am

By the way, I graduated in May and earned my Bachelor of Science degree in Biology.

briannak 11/14/2012 11:08am

However, if 1 in 5 people default on their loans and are unable to contribute to our capitalist economy, what will happen then? Unfortunately, it will be worse than the housing crisis. So before the levee breaks and burdens taxpayers at some point in the future, why not address the problem and pass the bill? Everyone in our society can benefit from the bill – from the student suffering from debt, to the parent who co-signed, to the business owner who needs people to pay for their items. It is a broad problem and HR 4170 addresses the problem in a practical way.

briannak 11/14/2012 11:08am

After reading many of the comments about the Student Loan Forgiveness Act, I would like to add a few things. Like so many of you, I am a student burdened by over $130k in student loan debt. Although I was awarded scholarships every year, I needed to borrow money. My middle-class parents were unable to support college costs, but they stressed the importance of a college education. I do not blame my parents at all – they were doing what our society told them to do. That a higher education leads to overall success in life. I also want to stress that I take responsibility for my loans. Since my repayments exceed my full-time income by $300/mo, I would like to see things change. I would like to have the lenders change their own out-dated conditions and access repayments based on income. The reason that they don’t is simple – they believe that they would make less money. …

lightshine 09/10/2012 7:06pm
in reply to Flash Mar 21, 2012 9:38am

Flash: whatever happened to you to make you so mean? Are you suggesting that these borrowers live on the street and give all their money to the Sallie Mae Corporation or whomever they borrowed from? What’s wrong with you? People making part-time or half-time income cannot give $500-$1,000 per month to Sallie Mae.

Don’t worry, Andy, things will get better, and there are many of us in your situation. Congress is even starting to wake up. My significant graduated a couple of years ago, as an older student, and now works half-time.

By the way, Flash, it’s not “truely,” it’s “truly.”

ebrianna 08/19/2012 11:04am
in reply to BacktoBasics Mar 23, 2012 12:35pm

I agree that tuition prices need to be addressed; the cost of tuition has risen over %800 since 1980. However, the immediate problem is the economy, and some economists are saying that we are in a depression. Money spent repaying debts does not contribute to the GDP, meaning no new products are being purchased. There’s about 1 trillion dollars of student debt that isn’t going to be spent on new products and services. With an already struggling economy, that is the issue that needs to be addressed first.

Addressing the tuition cost is another issue. One idea is that the government would cut off federal funded student aid from a school if they can’t justify tuition rises. That makes sense, but it could ultimately just hurt the students. I think schools should allow students a more active role in the spending of their tuition money. A student government could represent the students’s best interests to the school. Of course, the government couldn’t implement this.

SFletcher 07/12/2012 3:56pm
in reply to libbypw Mar 11, 2012 3:50am

The fact that 8 people find this comment useful is so sad.

SFletcher 07/12/2012 3:51pm
in reply to kelmn07 Mar 30, 2012 1:37pm

“Wasting money on women’s studies or psychology and such” – these are very viable things to study and enhance a needed knowledge in society.

evans69 05/02/2012 12:46pm

I think I am looking at this bill has as an economic booster, 10% of the income is towards the bill, I paying around 50% of my income towards my loans, so if I was only paying 10% as well as many others, there will be more economic activity, meaning increase in spending, such as houses, and in turn creates a better atmosphere for investment, lower risk, lower price in credit, I can even see the dollar increase in value, therefore making all American’s happy, not just a few. I think outside of the box, maybe it time for everybody seek ways of improving the economy outside of the box, is it a handout? Or is it an investment in our economy? That is the question here, I see it as an investment in our economy, making it better for all Americans, as the economy grows all social classes will benefit.

evans69 05/01/2012 11:31am

I feel that this will give a boost to the economy, I really do not want a handout, bailout as with the car companies, but the economic situation as brought it on, as many graduates are underemployed or unemployed, 50% of graduates are, there is a need to be a way to give the economy a boost and this is a way. 10% of the income going towards loans gives more income for graduates to invest into the economy helping the communities, businesses and all Americans. It is similar to the bailout of the auto industry; it helped the car companies to realign to be more competitive, how a graduate is loaded down with debt able to obtain a position with a company that looks at your credit for employment. There has to be a solution, and I feel this is a good one.

randywandarusell 04/29/2012 12:57pm

Please include students with JOINTLY CONSOLIDATED FFEL LOANS in this relief program! My husband and I are in this situation, and while we individually qualify for every program to assist with student loans currently available, because we jointly consolidated at the recommendation of our lender before it was decided it was a horrible idea, we do not qualify for anything! I would at the very least like the opportunity to refinance these loans at a lower interest rate so that we could actually make some progress on this mountain of debt!

spingus 04/26/2012 8:26pm
in reply to BacktoBasics Mar 23, 2012 12:43pm

Negative amortization. Can’t pay the full amount due? Pay what you can right? Then fees, then interest capitalization and the principal balance goes up putting the person deeper into debt.

Example: Undergrad+grad school in Biology =$132000 borrowed for one student. A couple layoffs, months of unemployment, debt goes into hardship forbearance at 7.5% interest and now equals $220000.

A person going into Biotech was told in the early 2000’s they could figure on making70-80k with their degree, but ended up with 38k. The loans go into extended payment that is negatively amortizing but gets ‘forgiven’ after 25 YEARS. The balance now is about 500k. THEN the former student owes a tax bill on the forgiven portion of the loan, likely has no retirement or other savings and is well into middle age.

All those years spent paying student loans and NOT building future security, patronizing business in their community or giving charitable donations and now what? Welfare. Welfare til they die.

tsroberson12 04/26/2012 7:23pm

I knew that I was going to pay back the amount I borrowed. I made the biggest mistake in taking out private loans. By the time I graduated with my masters degree, the interest was nearly more than the principal. I am truly blessed to have a job where my degree is actually used, however, I make NO money. I’ve never missed a payment, never been in deferment and nor have I ever or will ever put my loans in forbearance. I was always told that student loan debt is “good debt”. That is such a lie. My credit is PERFECT but due to the amount I make and how much “good debt” I am in, I can not get my own home, own car or even a small loan. Getting a degree was to help me get a home and my own car. I do not have money to pay my rent so I had to move back in with my parents. At first I felt horrible but I have great parents that do not charge me rent. I want to own my own home one day and this bill will allow that for me.

tsroberson12 04/26/2012 7:19pm

I knew that I was going to pay back the amount I borrowed. When I made the biggest mistake in taking out private loans. By the time I graduated with my masters degree, the interest was more than the principal. I am truly blessed to have a job where my degree is actually used, however, I make NO money. I’ve never missed a payment, never been in deferment and nor have I ever or will ever put my loans in forbearance. But, I do not have money to pay my rent so I had to move back in with my parents. At first I felt horrible but I have great parents that do not charge me rent. I want to own my own home one day and this bill will allow that for me. Myself and other want to pay the loan off but we should pay what we borrowed. I borrowed 35k, no 50k.

tsroberson12 04/26/2012 7:13pm
in reply to only1ranger Apr 18, 2012 8:58pm

My degree is in Criminal Justice. There will always be crime but there will not always be job. I’m working my butt off to pay my loans. No, I don’t want my loans to be wiped clean but repayment options would help. I make 32K a year and I work 2 part time jobs. You must bring in 6 figures to pay off your debt in the amount of time. That is great and I am happy for you but not everyone has it like you.

djjustice24 04/26/2012 6:29pm

I worked 2 jobs during school and that was to pay for my own housing gas and food. the basic necessities of life. i didnt have money for cars or anything. i went to college to get educated and find a decent job. i started school in 2005 and when i was done in 2010 with 2 degrees i had 23 thousand in debt. im so sick of seeing people blame us students or say we dont deserve any forgiveness. we dont want the debt to disapear i support this bill because i know how hard it is trying to pay ur loans back and this bill would give me the oppurtunity to do that. we took the loans because college is supposed to help u get a good paying job. but somewhere in the mix all the good jobs are now in other countries. college graduates cant get work service men lost their homes while they were oversees and all Republicans can say is “well those college kids shouldnt have gone to school if they couldnt afford it and those army men shouldnt have bought houses before they got shipped out”

nokonwod 04/25/2012 12:51pm
in reply to chask70 Mar 20, 2012 4:26pm

AGREED ! and well stated – it is unfortunate that we are in this position, but the solution is NOT to avoid solution. History shows, people cannot repay and feed their kids. Settling SOME of the debt is way better than none – why do you suppose so many creditors offer discounts on old debt ? It would be a huge step in boosting our economy.

nokonwod 04/25/2012 12:48pm
in reply to Keirnal1 Mar 14, 2012 12:10pm

The taxpayer is currently involved in all of this debt. Look at the numbers – the debt keeps climbing and none of it is being given back. people get crushed by it and can’t move forward. I agree there are lots of underlying issues that should also be dealt with, but this is a great way to get things back on track for millions of Americans. This is not the problem of a few, this is the problem of many.

nokonwod 04/25/2012 12:40pm
in reply to Flash Mar 21, 2012 9:38am

I am unsure about Andy, but the US Government Duped me. I was completely and totally convinced that I would need that piece of paper to succeed. And my parents and myself were literally advised that this was the best and only way to have a future. They even brought representatives right into the high schools to help you sign your life away. Lowered payments were not an option for us when we could not get the jobs to make the pay. The government failed to support industry in the US costing many jobs that we were promised would be there. I do not regret my decision to attend school, only my decision to borrow to do so. I don’t run up credit cards and buy homes I can’t afford and yet those folks get forgiveness by the government – I am asking the government to provide a little help for me – so I can have a chance at helping my own children succeed.

xpumasx 04/25/2012 10:37am

Very proud of all the folks who were able to pay their loans back. Congrats. Some of us were taken advantage of and misled by the lenders and financial aid offices of our schools. Not many 19 year olds truly understand what they are getting themselves into when they take out student loans. I was told, “everyone does this” and “they have a cap of how much they can ask you to pay”. BS. I have over $140k in private and federal loans going into a profession that does not support that kind of education debt. The laws passed in 2005 that protected the private student loans in the same fashion as federal loans are unconstitutional. No other lender in the world gets such protections. Imagine if every credit card company could go after you the same way Sallie Mae can, wage garnishment, insurmountable collection fees, taking away professional licenses, etc. The blame is partly my own but I cannot and will not take all of it. I was misled and deceived by a corrupt industry and I demand change.

nwilson7871 04/24/2012 2:37pm
in reply to nwilson7871 Apr 24, 2012 2:34pm

Four Years*, typo. Not for years. LOL!

I know*, typo. Not “DI know”.

Sorry for all the typo’s, guess I need to double check what I send so I don’t look like a dummy!

nwilson7871 04/24/2012 2:34pm
in reply to AndyFiorello Mar 13, 2012 8:58pm

Andy, I understand your concern and I feel for you. However, there is not one person that held a gun to your head and made you go to college that cost 80K. Looking for a job? Join the military. They have student loan repayment plans where they will pay off your student loans in its entirety for a commitment of 5 or 6 years. I am a veteran that saw this coming…(student loans). I went into the Army, served for years and got my GI bill. I didn’t ask for a “handout” as other people here have said you are looking for. Granted it is technically “government money”, however it is also an employment contract. You have guaranteed work for 5 years, student loans wiped out and you can go directly to OCS (officer candidate school). DI know you have said you were over qualified for fast food and I agree, but our military is in need of REAL leaders. I was there and I have worked for some pretty dumb officers. Make a change and join the military, doesn’t matter what branch!

only1ranger 04/18/2012 9:02pm

Forgiveness is a terrible idea. People will never learn from their poor decisions. Putting a cap on interest rates or capping deferment penalties may help but the loan provider needs to get their investment back plus interest for taking the risk.

I have some friends who missed loan payments and had to differ a number of times. They blame the loan provide and in each case it was my friend who made terrible decisions on how to spend their money. Buying new cars, spending hundreds going out partying every month, vacations, etc. Fools.

only1ranger 04/18/2012 8:58pm

Undergrad loans: $40,000+ at 7.1% 1995 – 1998, $10,000+ at 5.7% in 1999-2000.
Racked up an addition $15,000 in credit card debt
Graduated and paid off all debts by 2006

Graduate school loans: $35,000 at 6.5% 2006 – 2008
Zero credit card debt (learned my lesson)
Graduated and paid off loan in 2012

Also worked part to full time during undergrad and grad school.

Success = picking a degree with a good ROI in a field I liked, stayed in state at a public school, worked my ass off, networked, got jobs within my field during school, got involved in on-campus groups related to my field.

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