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U.S. Rep. Hansen Clarke, a Detroit Democrat, says student loans need more reforms than the bill signed Friday to keep interest rates from doubling.
U.S. Rep. Hansen Clarke, a Detroit Democrat, says student loans need more reforms than the bill signed Friday to keep interest rates from doubling.
He's hoping the more than 1 million people who have signed a petition supporting a bill he's championing will force Congress to make more meaningful reforms to the student loan system.
"The demand is to change the system," he said June 25. "We've got to keep the bubble from bursting and help people who are swamped by debt. I would like to forgive a lot of these loans."
Clarke's bill, which is in committee in the House, would do just that.
Under his plan, people could have federal loans forgiven if they paid 10% of their disposable income -- which is basically any income exceeding 150% of the federally set poverty level -- for 10 years. The plan would apply to undergraduate, graduate and parent loans. Those in public service jobs could have loans forgiven after five years.
"Nobody's getting a free ride here," he said. "They have to pay on the loan before they are eligible for forgiveness."
