New bill would end student loan forgiveness program

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Republicans have proposed a new bill that will hurt future U.S public service workers by wiping out the Public Service Loan Forgiveness Program.

It has been reported that Rep. Virginia Foxx of North Carolina and Rep. Brett Guthrie of Kentucky of the House Committee on Education and the Workforce have unveiled their 542-page bill called the the Promoting Real Opportunity Success and Prosperity through Education Reform Act, or PROSPER Act for short. This act basically reduces the amount of tax dollars that feed federal funding of public education. For example, if this bill gets passed, the Public Service Loan Forgiveness program will be eliminated.

The Public Service Forgiveness Program allows for federal loan debt to be forgiven after 120 on-tine payments through one of the federal loan repayment programs for 10 years. This program is for those who work in public service fields like teaching, nursing and social work.

There are eight student loan repayment options but if this bill gets passed there will only be two: the standard 10-year plan and the income-driven plan. Borrowers who enroll in a federal repayment plan after June 2018 will be affected.