H.R.3257: Student Loan Fairness Act

Student Loan Fairness Act (H.R. 3257) would reform federal student lending by capping borrowers’ monthly payments to 10 percent of their discretionary income, limiting interest capitalization to 10 percent of the original principal amount, granting tax-free forgiveness up to $45,520, reducing the number of payments to receive Public Service Loan Forgiveness from 120 to 60, and limiting interest rates to 3.4 percent. The bill would also allow eligible private student loan borrowers to convert their debt into federal Direct Loans.