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Zac Bissonnette, Jon White, Jackie Walters, and Brent Pittman were gracious enough to spend time in helping me understand the Student Loan Forgiveness Act of 2012 that is being put in front of Congress. Thanks to Deacon Bradley from LifeStoked.com for making us aware of this!
Will the Student Loan Forgiveness Act of 2012 work?
The idea is to give student borrowers some relief and forgiveness, which is a wonderful gesture. My guests and I address specific aspects about this Act and we discuss how this could work, and how it won’t.
Highlights discussed from the Student Loan Forgiveness Act:
- The 10/10 Standard: Make payments equal to 10% of discretionary income for 10 years and the balance will be forgiven
- Cap the interest rate on Federal student loans at 3.4%
- Converting private student loans into the Federal program
- Changing the Public Service Loan Forgiveness requirement from 10 years to 5 for working in public service positions such as teaching, firefighting, and medicine in underserved communities
- Jump-starting the economy: Allowing millions of Americans the leeway in their budgets to buy homes, start businesses, and creating jobs
- Help those who experience illness, unemployment, and divorce. Yes, divorce
- The biggest question of it all: WHO’S GOING TO PAY FOR THIS?
My opinion
This is a wonderful gesture, but it can’t pass. That’s not to say that it couldn’t pass, I’m saying this shouldn’t pass because it will do what the bailout programs did for our economy a few years ago: Nothing except save couple companies and put America into MORE debt.
Guests on this episode and links:
Jackie Walters
Jon White
Brent Pittman – OnTargetCoach.com
Zac Bissonnette, Author of Debt Free U
Bonus audio!
Zac Bissonnette exclusive! The never before told story of how he got CNN to drop a stupid video from their website. Zac Bissonnette Bonus – CNN pulls video
Thanks Steve for having me on the show. It was great to share my opinion on the bill and bring to light the issues that student loans can cause. Plus the Bonus material with Zac was great!
Thanks for including me. It was a blast. Let’s hope for change. Here is the donut place I was mentioning Dh Doughnut House Co on Palms/Overland.
I don’t think a Government regulation will solve the student loan debt problem. I think personal responsibility and teaching future students about the dangers of debt will make a better difference. We need to change the culture, not regulations.
The government and private lenders can sue in order to collect on loans. There is no time limit on suing to collect on federal student loans, and the borrower can be sued indefinitely. Private student loans, in most cases, are subject to statute of limitations laws depending on the state.