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Affordable Loans for Any Student Act
12/29/2022, 10:18 PM
Summary of Bill HR 7288
First, the bill seeks to lower interest rates on federal student loans, making it more affordable for students to borrow money for their education. This would help reduce the overall amount of debt that students accumulate while pursuing their degrees.
Additionally, the bill includes provisions for income-driven repayment plans, which would allow students to repay their loans based on their income level. This would help alleviate the burden of high monthly payments for students who may not be able to afford them otherwise. Furthermore, the bill proposes expanding loan forgiveness programs for students who work in public service or other designated fields. This would incentivize students to pursue careers that benefit society while also helping them manage their student loan debt. Overall, the Affordable Loans for Any Student Act aims to make higher education more accessible and affordable for all students, regardless of their financial background. By implementing these provisions, the bill seeks to alleviate the burden of student loan debt and help students achieve their educational goals without facing financial hardship.
Congressional Summary of HR 7288
Affordable Loans for Any Student Act
This bill addresses repayment options, loan disclosures, and loan counseling for student loans.
The bill revises requirements concerning repayment options for student loan borrowers. For instance, the bill terminates interest capitalization and origination fees for Federal Direct Loans, provides assistance to low-income borrowers or borrowers who are delinquent on loan payments, and replaces the existing income-based repayment plans with two new plans. Under the new plans, borrowers may choose (1) a fixed repayment plan with equal monthly payments paid over a period of 10 years, or (2) an income-based repayment plan with monthly payments equal to 10% percent of their income above the poverty level. The income-based plan is capped at 20 years of payments.
The bill also revises requirements concerning student loan disclosures and student loan counseling for borrowers. For instance, the bill requires the Department of Education to maintain online counseling tools that provide borrowers with entrance and exit student loan counseling.
