I'm Just a Bill...But I Know I'll be a Law Someday!

Phew, you sure have to climb a whole lot of stairs to get to the Capital Building, but I wonder what that sad little scrap of paper is?  Oh that’s H.R.4170, better known as the Student Loan Forgiveness Act of 2012 that was introduced by Congressman Hansen Clarke (D-MI).  The bill, if passed, would forgive the remaining student loan debt to any citizen who has made monthly payments for 10 years. The bill states:

“After the borrower has made 120 monthly payments described in paragraph (1), the Secretary shall forgive—the balance of principal and fees due on the borrower’s eligible loans as of the time of such forgiveness, not to exceed $45,520.”

Paragraph (1) simply states the payment amount can be no less than 10 percent of the borrower’s discretionary income that will in turn, provide forgiveness in 10 years.

So what does all this mean for us Generation Y’ers like me?  It means that someone in Congress has realized the ticking time bomb that is the student loan debt crises. As the bill states, student loan debt officially surpassed credit card debt in the United States in 2010, and will exceed $1,000,000,000,000 this year! That’s 12 zero’s folks. Student loans, if not mediated, could be the next foreseeable bubble to burst that could have the same impact as the 2008 recession.

Mounting tuition costs and fees are hindering the economic and more importantly our nation’s academic growth. Student’s often have no other choice to but to amass, what my friends and I consider “soul crushing” debt to obtain an education that will earn us a living wage. Congressman Clarke it the nail right on the head with the statement:

 “Faced with excessive repayment burdens, many individuals are unable to start businesses, invest, or buy homes. Relieving student loan debt would give these individuals greater control over their earning and would increase entrepreneurship and demand for goods and services”

Though there are many who argue on the position of “why should I have my tax’s pay for your education” and so on, consider the following.  Seven of the top ten countries with the highest level of education have universal education from kindergarten to universities. India which is ranked 10^th is working towards universal education because it is of national interest to have an educated population.

Congressman Clarke and his supporters, unlike the other 400 or so representatives are living in the reality of most American’s.  He believes that education should be viewed as a public good benefitting our society rather than a commodity solely benefiting those who can afford higher education. Support this bill, support your education. This isn’t a handout; this is an investment towards the nation’s future. A well-educated citizenry is pivotal for our nation’s ability to compete globally.  

To learn more about how a bill is passed into law check out our upcoming book U.S. Constitution For Beginners!