Student Debt Reduction Act

Student Debt Reduction Act - Amends the Higher Education Act of 1965 to cap annual, income-based, student loan repayments under the Federal Family Education Loan and Direct Loan programs at 10% (currently, 15%) of the amount by which a borrower's and the borrower's spouse's adjusted gross income exceeds 150% of the poverty line.

Requires the Secretary of Education to cancel or repay such loans after 20 (currently, 25) years.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4834 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4834

  To amend section 493C of the Higher Education Act of 1965 to limit 
 student loan payments to 10 percent of discretionary income, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 11, 2010

 Mr. Schauer introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
  To amend section 493C of the Higher Education Act of 1965 to limit 
 student loan payments to 10 percent of discretionary income, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    The Act may be cited as the ``Student Debt Reduction Act''.

SEC. 2. INCOME-BASED REPAYMENT.

    Section 493C of the Higher Education Act of 1965 (20 U.S.C. 1098e) 
is amended--
            (1) in the matter preceding clause (i) of subsection 
        (a)(3)(B), by striking ``15 percent'' and inserting ``10 
        percent''; and
            (2) in the matter preceding clause (i) of subsection 
        (b)(7)(B), by striking ``25 years'' and inserting ``20 years''.
                                 <all>