Consistent with President Obama's commitment to helping students burdened by education loan debt, The White House should support H.R. 1330 and work with Congress to ensure its passage and approval.
This legislation would:
-establish a new “10-10” standard for student loan repayment, requiring students to make ten years of payments at 10% of their discretionary income, after which their remaining federal student loan debt would be forgiven, TAX FREE.
- cap federal interest rates at 3.4%
- allow eligible borrowers to convert their private loan debt into federal loans
- extend interest-free deferments to unemployed borrowers of unsubsidized federal student loans and those enrolled in the “10-10” repayment plan.
- provide TAX FREE forgiveness under IBR and ICR plans