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senate Bill S. 793

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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08/27/2015
"In this economy, college is the new high school. We need to make it affordable for all Americans so that we can compete on the world stage." [berniesanders.com]
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08/27/2015
“While not every college needs to graduate every student debt-free, every kid needs a debt-free option.” [insidehighered.com]
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BarackObama's Opinion
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08/27/2015
"Earning a post-secondary degree or credential is no longer just a pathway to opportunity for a talented few; rather, it is a prerequisite for the growing jobs of the new economy." [whitehouse.gov]
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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.

ThomasParker's Opinion
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06/13/2015
The real problem is that the government has guaranteed these loans, artificially driving up the price of tuition. Get rid of those guaranteed loans and the cost of tuition will fall through the floor. The present situation of entrapping students is disgraceful.
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V's Opinion
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06/12/2015
If a student borrowed the money, they must pay it back. That is how a responsible adult deals with a loan commitment. I, as a taxpayer, do not owe the debt.
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ScottWalker's Opinion
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08/27/2015
“Really the heart of why the loans are going up so much is because tuition was going up three to four times the rate of inflation." Read more at http://www.marketwatch.com/story/where-the-presidential-candidates-stand-on-student-debt-2015-07-28
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What is Senate Bill S. 793?

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. 793

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 Finance
    IntroducedMarch 18th, 2015
    "In this economy, college is the new high school. We need to make it affordable for all Americans so that we can compete on the world stage." [berniesanders.com]
    Like (125)
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    Share
    The real problem is that the government has guaranteed these loans, artificially driving up the price of tuition. Get rid of those guaranteed loans and the cost of tuition will fall through the floor. The present situation of entrapping students is disgraceful.
    Like (33)
    Follow
    Share
    “While not every college needs to graduate every student debt-free, every kid needs a debt-free option.” [insidehighered.com]
    Like (52)
    Follow
    Share
    "Earning a post-secondary degree or credential is no longer just a pathway to opportunity for a talented few; rather, it is a prerequisite for the growing jobs of the new economy." [whitehouse.gov]
    Like (28)
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    Students should be an investment into the country's future, not a source of income now. Especially not at these rates.
    Like (23)
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    Higher education should be encouraged as a boom in the lives of our citizens, not a burden that must be carried on throughout their lives.
    Like (9)
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    If a student borrowed the money, they must pay it back. That is how a responsible adult deals with a loan commitment. I, as a taxpayer, do not owe the debt.
    Like (8)
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    I'm not sure how people are interpretting "forgiveness" in the name but it's debt restructuring, including interest reduction & payment simplification, but debt still has to be repaid. Cost of $51 billion over 10 years is small on national level and it's more than offset by taxes on personal incomes over $1 million. What this means is that the government would be closing deficits over time by profiting less on loans to people investing in their own educations and taxing the wealthiest a little more. Seems sensible to me. We really should get government loans on education down to 0% interest, or even better, so I'm on board!
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    Yes, and students who have the right to a higher education shouldn't be fiscally exploited or penalized for their desire to further themselves.
    Like (6)
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    “Really the heart of why the loans are going up so much is because tuition was going up three to four times the rate of inflation." Read more at http://www.marketwatch.com/story/where-the-presidential-candidates-stand-on-student-debt-2015-07-28
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    Student loan debt should NOT be an element of US government income. APR should be 0.
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    "Our country was built on the belief that no matter who you are or where you were born, your hard work should pay off. But for too many of our children, that promise is out of reach from the very start." [martinomalley.com]
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    I and my children paid ours!!! Buying votes versus lowering college costs.
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    The government will spend this money anyway so instead of sending to a foreign country we should be taking care of our own legal citizens.
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    Why did they borrow insane amounts of money in the first place? Most college students are at least 18 years old when they begin college. They are legally adults. They want the rights but not the responsibilities resulting from their poor choices at my expense? NO WAY!
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    “We don’t need more top-down Washington solutions that will raise the cost of college even further and shift the burden to hardworking taxpayers.” Read more at https://jeb2016.com/jeb-bush-on-hillary-clintons-fiscally-irresponsible-higher-education-proposal/?lang=en
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    As someone who is currently paying off student loans, this bill makes sense even if the title sounds scary. I pay 3 different entities each month at 4 different interest rates. One payment, one interest rate.
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    Why don't we buy less arms and take part of that 800 billion dollars we spend on defense and help pay for higher education?
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    This is how we prepare for the future. Educate, enlighten and empower the people. People should be educated for free as long as they are willing to grow academically and implement that knowledge to serve people. We can afford it. The money is there. This needs to be a priority.
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    Just make things "free" when people complain about having to pay back their loan? What's next? Movies theater tickets are a lot of money, let's make that free. Apps on the App Store, make them free. Who care about that old word responsibility. Nothing is for free people and money has to be paid back. Why should others (meaning the tax payers) have to pay your way? Give colleges incentives to bring tuition down would be a good avenue.
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