A new bill has been introduced in the U.S. House of Representatives that seeks to forgive student loan debts after graduation. It is called the Student Loan Debt Relief Act (SLCA). Many people are excited about this bill. However, there are some issues that people should look into before rushing out and downloading the PDF file of the bill. If you are not familiar with the contents of the bill, then it would be wise for you to read through the below article.
One important provision of the Scholarship For Firefighters Act is the provision for borrowers who were assigned to active duty or were discharged honorably due to discharge from service. Qualifying borrowers will be given forgiveness if they have been enlisted in the Selected Reserve, are retired from military service, or are volunteers in national rescue organizations. A borrower must not have been discharged from active duty during the period of at least seven continuous months immediately preceding the application. One eligible candidate can apply for a five-year renewable scholarship to cover all educational expenses.
In order to qualify for the program, borrowers must complete all required actions within the time period specified by the SLCA. This time period starts on the date of discharge from active duty or the date of separation or release from the reserves. After completing the necessary actions, borrowers must contact the lender and submit a loan payment plan. The plan must include the amount of forgiveness and the repayment schedule. Failure to repay the loan will result in the cancellation of the application.
Borrowers who have not repaid the loan for five continuous years will not be considered for forgiveness. The repayment plan must include the total monthly payments. The borrower may also request forgiveness on amounts already paid as loans or grants. The application process is a lot faster if the borrowers select the loan with a federal approved lender. The borrowers will only need to fill out the application.
If the borrower qualifies for the student loan forgiveness, he or she will receive a link to the form on the web. From there, he or she can complete the required actions. The borrower must check the submission date, the action link, and the due date on the application.
The next bill that Congress passed last year, H amend the Higher Education Act is the Protecting Students With Student Loan Debt Act. As with the borrower forgiveness, the borrower must also complete the entire repayment plan. The Protecting Students With Student Loan Debt Act has a two pronged approach. It repeases the bankruptcy code section that allows creditors to take legal action against borrowers who fail to repay their debts. The second part of the bill makes it easier to get rid of existing debt.
An approved lender will be required to submit a certified application for student loan debt forgiveness. After the approval, the lender will send a certified letter of claim to the United States government. Once approved, the borrower must provide proof that he or she is eligible for the student loan forgiveness. A borrower can check the list of approved lenders to find out who has been approved.
The third bill that President Trump signed into law is the Scholarship for the Future. The new Scholarship for the Future Act provides money to students that would have otherwise gone to default in their federal student loans. In addition, the bill repeals a portion of the Higher Education Act that prevented students from being able to defer their loans’ interest. Students can apply for the scholarship by following the steps laid out by the Department of Education.