A new bill proposition to ease the tension of student loans

A new bill was proposed to the senate today in another attempt to pass legislation that will help to ease the burden of student debt. This bipartisan bill, called the Dynamic Repayment Act includes clauses regarding debt forgiveness as well as a pay-as-you-earn plan.

Though there are existing pay-as-you-earn programs available to borrowers, they have complicated and confusing applications and a ton of red tape in general. With the existing programs, all debt is forgiven after 20 years. This new proposal would standardize the pay-as-you-earn model, unless borrowers want to set up their own payment schedules. From there, in an attempt to appeal to both parties, the bill also says that all debts below $57,500 would be forgiven after 20 years, and any more than that would be forgiven after 30 years. It seems almost too good to be true, which leaves people skeptical as to whether it is.

http://www.slate.com/blogs/moneybox/2014/07/17/marco_rubio_and_mark_warner_student_loan_bill_great_legislation_but_does.html