My idea: It should be proportional to your total income. If they want to stick with the 10/10 idea, then a doctor making $150,000+ should pay 10% of their total income each year for 10 years while somebody else making $40,000 also pays 10%. Either way, each person will still likely receive significant debt forgiveness. It could even be dynamic if there is job loss, illness or injury.
That's just my 2 cents on the issue. I'm sure some of you will disagree.
Here are the bill's highlights:
Make student loan repayment both simple and fair
o The bill would create a new “10-10 standard” for student loan forgiveness.
- If you make payments equal to 10% of your discretionary income for 10 years, your remaining federal student loan debt would be forgiven.
- If you have already been making payments on your student loans, your repayment period would likely be shorter than 10 years. The amount you have already paid on your student loans over the past decade would be credited toward meeting the requirement for forgiveness.
o The bill would reward graduates for entering public service professions like teaching and
firefighting. It would also provide incentives for medical professionals to work in underserved communities. It would reduce the Public Service Loan Forgiveness requirement to 5 years from its current 10 years.
Jumpstart the economy and create jobs
o The bill would increase millions of Americans’ purchasing power by forgiving debt,
reducing loan repayment burdens, and cutting fees and interest rates. This would free
many of these Americans to invest, buy homes, and start businesses.
o The bill would create jobs by increasing consumer demand for goods and services.
Send a lifeline to student borrowers who have fallen on difficult times
o Many Americans who have fallen behind on payments due to illness, unemployment, or
divorce face continually rising interest rates and compounding fees with no hope of escape.
- The bill seeks to ensure that no one will be pushed into poverty because of a stroke
of bad luck.
- Americans who are behind on their payments would be eligible to enroll in the new
program and bring their payments down to 10% of discretionary income.
Promote financial responsibility in higher education
borrowers would be subject to a $45,520 cap on forgiveness (based on the average overall cost of a four-year degree at a public university). The aim is to incentivize students to be mindful of educational costs and for colleges and universities to control tuition increases.
o Provisions of the bill itself would be financed by projected savings from Iraq and Afghanistan Overseas Contingency Operations; the bill would not affect funding for existing student aid programs.
Here is the entirety of the bill - http://www.forgivest...-4170-bill-text