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senate Bill S. 2432

Student Loan Forgiveness: $51 Billion in Spending Over the Next Ten Years

Argument in favor

Simplifies the repayment process for borrowers. Helps women, as due to the gender pay gap, females have a more difficult time paying back student loans.

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02/23/2015
With student loan debt at an all time high of$1.2 trillion and the average student graduating with $30,000 in debt, it is more important than ever before to ensure that students can borrow at the lowest interest rates possible and have their debt forgiven as soon as possible in order to enable young people to contribute to the economy in whichever way they can.
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Tanya's Opinion
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02/28/2018
Interest rates are ridiculously high for student loans-7% for my $200,000! The clinical program did not allow us to work and we ALL accumulated a ton of debt with super high interest rates for an education. This is not a jet ski or plastic surgery, it’s education for the future which society is demanding! Do not penalize future generations who better themselves by burdening them with impossible student loan debts with crazy interest rates. My school costs $1000 a credit hour!!
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Argument opposed

A ten-year, $51 billion bailout for people who can't pay back their student loans is not something that taxpayers can or should have to shoulder at this juncture.

Ken's Opinion
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06/23/2020
The government needs to get out of the student loan stuff...college is a awful “investment” for most people so we as a nation need to stop our support.
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Jp's Opinion
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05/14/2015
Honestly, these loans should be no different that Nogales of auto loans. They should be able to refinance them and have them be treated as any other form of a loan. For more info, see YouTube>Search>"Jon Oliver - Student Loans"
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What is Senate Bill S. 2432?

This bill would allow borrowers to refinance their student loans at lower interest rates while at the same time consolidating loans and allowing the borrower to make only one payment per month, and deal with only a single loan officer. 

Impact

The bill affects students dealing with student loan payments.

Cost of Senate Bill S. 2432

The math here is a little complicated. The bill spends $51 billion over the next decade. However, the bill also plans to introduce a minimum tax of 30% for those making more than $1 million a year. That tax hike would in turn increase federal revenues by $72 billion over the next decade, leading to a deficit reduction of $22 billion over the same ten-year period.

More Information

Media:

The Blaze

(Photo Credit: The Guardian)

Of Note:

According to The Examiner,
The bill would allow students to refinance at the current rates of 3.86 percent for undergraduate loans and 5.41 percent for graduate loans. Refinancing of Parent Plus loans to the current 6.41 percent is also included in the bill. Currently, outstanding student loans carry interest rates as high as 9 percent.

AKA

Bank on Students Emergency Loan Refinancing Act

Official Title

A bill to amend the Higher Education Act of 1965 to provide for the refinancing of certain Federal student loans, and for other purposes.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The house has not voted
  • The senate has not voted
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
    IntroducedJune 4th, 2014
    With student loan debt at an all time high of$1.2 trillion and the average student graduating with $30,000 in debt, it is more important than ever before to ensure that students can borrow at the lowest interest rates possible and have their debt forgiven as soon as possible in order to enable young people to contribute to the economy in whichever way they can.
    Like (3)
    Follow
    Share
    Interest rates are ridiculously high for student loans-7% for my $200,000! The clinical program did not allow us to work and we ALL accumulated a ton of debt with super high interest rates for an education. This is not a jet ski or plastic surgery, it’s education for the future which society is demanding! Do not penalize future generations who better themselves by burdening them with impossible student loan debts with crazy interest rates. My school costs $1000 a credit hour!!
    Like (2)
    Follow
    Share
    The government needs to get out of the student loan stuff...college is a awful “investment” for most people so we as a nation need to stop our support.
    Like
    Follow
    Share
    Honestly, these loans should be no different that Nogales of auto loans. They should be able to refinance them and have them be treated as any other form of a loan. For more info, see YouTube>Search>"Jon Oliver - Student Loans"
    Like
    Follow
    Share