Proposed Legislation Aims To Ease Pennsylvanians’ Student Debt Burden
Perhaps you have heard that, now that the results of the most recent census are in, Pennsylvania will be losing an electoral college vote. The state that decided the last two presidential elections will cast only 19 electoral votes in the 2024 presidential election. This is because Pennsylvania has not experienced the same population growth that other states have witnessed in the past decade. Not that age is a factor in determining the number of electoral votes (that number is based on the total population, not on the number of eligible voters), but lawmakers especially find the exodus of young adults from Pennsylvania worrisome. Pennsylvania deserves its reputation as a center of innovation and erudition, and a bill recently proposed in the state legislature aims to make it affordable for young, educated people to live in Pennsylvania, bringing their optimism and productivity with them. Of course, student debt and the cost of homeownership are bigger problems than a single bill can solve. Even if you qualify for the incentives offered by the new bill, it still helps to meet with a Philadelphia consumer law attorney to look at the big picture about your finances.
Introducing the Put Down Roots in PA Act
Many young people despair of ever being able to buy a house because so much of their income goes to making minimum payments on student loans. The Put Down Roots in PA Act, introduced in the legislature in April 2021, aims to address this problem directly. Under the new bill, first time homebuyers would qualify to have up to $50,000 of their student debt forgiven. The federal lenders would forgive 1/36 of the forgivable amount each month for three years, on the condition that the homebuyer continue to live in the house. In other words, you would be able to pay up to $50,000 toward your mortgage that you otherwise would have spent on loans.
Borrowers whose income is $150,000 per year or less are eligible for loan forgiveness. Likewise, the borrower must have already graduated before applying for the mortgage. The student loans must have been borrowed for the pursuit of a vocational certificate, a two-year associate’s degree, or a four-year bachelor’s degree. The bill does not include forgiveness for student loans applied to master’s doctorate, medical school, or law school programs.
The New Bill Cannot Solve All of Pennsylvania’s Student Debt Problems
Promising as it is, the Put Down Roots in PA Act does not help everyone. Many borrowers are stuck with student loan debt from degree programs they did not complete. Other borrowers are already struggling with a home mortgage. Some borrowers who do not meet the income eligibility requirement are still struggling with student debt. The Put Down Roots in PA Act cannot help with these problems, but a consumer law attorney can.
Reach Out to Us Today for Help
A Philadelphia consumer law attorney can help you if you feel like you have to choose between your education and your dream of home ownership. Contact Louis S. Schwartz at CONSUMERLAWPA.com to set up a free, confidential consultation.