IBR, Debt Forgiveness eliminated, wage garnishment added Forum

[sadsituationJD]

New bill will eliminate IBR, eliminate forgiveness, and institute mandatory wage garnishment for student loans:

http://www.businessweek.com/news/2012-1 ... ongress#p2

[bandenjamin]

Well, I guess the interest cap will help some on that side of the equation. They should make the school accountable for the portion of lost income due to the interest cap. That might balance out the equation for all parties concerned and spread the responsibility between both student and school.

[otnemem]

The legislation would tie the interest charged to Treasury market rates. Currently, students in the most popular program pay as much as 6.8 percent.

In another boon to borrowers, the plan would cap interest owed at 50 percent of a loan’s face value at the time of graduation, giving a break to lower-income borrowers who take longer than the standard 10 years to repay loans. For a student who took out $27,000 in loans, about the national average for a graduate of a four-year program who borrowed, the interest couldn’t exceed $13,500.

Other than for people getting public interest or government jobs, this doesn't sound like a bad deal.

[IAFG]

New bill would eliminate IBR, eliminate forgiveness, and institute mandatory wage garnishment for student loans:

http://www.businessweek.com/news/2012-1 ... ongress#p2

ftfy. so shocked that you're misrepresenting facts again. so so shocked.

Legislation that Wisconsin Republican Representative Tom Petri plans to introduce as soon as this week would require employers to withhold payments from wages in the same way they do taxes.

I assume no one needs a civics lesson on what the difference is between a new law being passed and one representative planning on introducing legislation is.