ANIMAS HIGH SCHOOL MODEL SENATE

Committee: Education

Principal Authors: Sheldon Whitehouse

(Henry Isenberg)
Rand Paul (Jake Beekmann)

Bill No: 1-2016

Submission Date: (12/11/16)

Title of Bill: Endorsement of Student Financial Incentives

BE IT ENACTED BY THE ANIMAS HIGH SCHOOL MODEL CONGRESS
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Preamble: Whereas, in 2004, 22.5 million people had student loans, now 43.3 million an
increase of 92 % for those graduating from four year institutions, and since this year student loan
debt will reach over 1.2 trillion dollars nationwide, outpacing the total credit card and auto loan
debt for the first time with an inflation rate of 2.4% annually rising tuition at an average of
$32,000 per year, since state education budgets and income based repayment systems are limited,
and since private lenders are constrained with funds, debt is projected to surpass the national
average income of $55,775 by the year 2027,
SECTION 1: The distribution and regulation of Federal student loans by the United States shall
be changed by -Sub-SECTION A: Reducing annual educational loans disbursed by the government by
$50 billion annually.
Sub-SECTION B: The annual funds taken from federal loans will be redistributed towards
Pell Grants.
(A) Enforce regulation on Public Universities to distribute loans subject
to estimated budget.
SECTION 2: Increase funding by $200 billion to endorse state schools by-Sub-SECTION A: Eliminating production of 1,250 redundant F-35 Jets estimated at a
cost of $200 billion.
Sub-SECTION B: Redirect $200 billion into U.S. Department of Education annually to
accumulate a larger subsidy for State University Funds until the fiscal year 2027.
Sub-SECTION C: Redistributing 3%, $18 billion, of taxes that go to the military($600
billion) towards state institutions leaving the military with an annual budget of $582
billion.
(A) Under certain circumstances of severe war this redistribution may be
re-evaluated.

SECTION 3: Accessibility to threshold median income-based repayment system by-Sub-SECTION A: Ensuring that all students will have fair access to the repayment
system.

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Sub-SECTION B: Allowing Federal Aid borrowers to pay nothing until their annual
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income reaches a certain threshold;
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(A) Maintain income threshold of $36,100, or when the loan
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holder has reached 28 years of age, for 2-year undergraduate
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degrees.
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(B) Maintain income threshold of $53,000, or when the loan
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holder has reached 28 years of age, for 4-year undergraduate
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degrees.
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(C) Maintain income threshold of 60,000, or when the loan
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holder has reached 28 years of age, for graduate degree holders.
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Sub-SECTION C: Requiring that any remaining balance after 20 years of loan payments
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will be forgiven or 10 years for those who work in public-service jobs subject to taxable
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income.
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Sub-SECTION D: Implementing tax on financial transactions of 0.001% per trade
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generating $26 billion in annual revenue.
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Sub-SECTION E: Increase funding for U.S Department of Education for accumulation of
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interest during pre-threshold term.
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53 SECTION 4: Reduce interest rate on direct subsidized loans by -54
Sub-SECTION A: Cutting direct subsidized loans with a fixed interest rate of 3.76%
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monthly to 2.05% of the holders payments.
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Sub-SECTION B: Requiring that direct subsidized loans are available to low-and-middle
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income students.
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Sub-SECTION C: Demanding that the U.S. Department of Education pays
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interest on a Direct Subsidized loans.
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(A) The U.S Department of Education will pay interest on
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subsidized loans while students are in school and
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subsequent to graduation until the holder has reached the
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required income threshold.
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(B) Will pay interest on loans during loan deferments or
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postponement plans.
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67 SECTION 5: Student loan forgiveness programs will be incentivised with private lenders by-68
Sub-SECTION A: Providing tax reductions of .01% per employee that is given loan
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forgiveness through the corporation.
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(A) Maximum tax reduction for loan forgiveness incentives
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is 2.00%.
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(B) Percent of tax reductions is subject to years of experience
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or type of degree held.
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Sub-SECTION: B Companies with 25+ employees are eligible for the tax incentive.
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Sub-SECTION C: Requiring that students have acquired a minimum 2-year degree to
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be eligible for loan forgiveness.
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87 SECTION 6: This bill shall go into effect 1 fiscal year after passage.
Appendix :

SECTION 1:The distribution and regulation of Federal student loans by the United States shall
be changed. By regulating the spending of the Federal government and shifting funds to State
Education Budgets will reduce the cost of tuition (Average of 32,000) . The Government spends
$100 billion annually on student aid, gradually redirecting $50 billion into individual state
Education budgets. In turn this would drive the cost of tuition down for Public Universities.
Currently, Universities are rising the cost of tuition due to the low state education funds. This
would implement the government to assist the cost of tuition, allowing for the reduction of Federal
aid interest rates on student loans.
Appendix :
SECTION 2: Eliminating production of 1,250 redundant F-35 Jets estimated at a cost of $200
billion. Currently, if the government purchases 2,500 F-35 it is estimated to cost around $400
billion, which has performance abilities that are incompetent and outdated. With the account for
an annual $1 trillion in expenses for upkeep and maintenance makes it a unreasonable investment
for the United States. In the following proposal it is suggested that they eliminate the purchase by
50%.
SECTION 3: Sub-SECTION C : Requiring that any remaining balance after 20 years of loan
payments will be forgiven or 10 years of loan payments for those who work in public-service jobs
subject to taxable income. The following section suggests that any balance that is remaining on
income based repayment system after making continuous payments for 20 years is forgiven in the
form of a taxable income. A large population of students entering the field of public service are
required to obtain at least a bachelor's degree and are making an average of 30,000 - 48,000
contributing to public need. This section requires that students that enter public service industry
are granted loan forgiveness that allows the balance to be forgiven after 10 years with continuous
payment records.
SECTION 3: Sub- SECTION D: Implementing tax on financial transactions of 0.001% per trade
to generate $26 billion in annual revenue. The following sub-section insists that stock and bond
trades are taxed on the federal level, allowing them to generate a large amount of revenue.
Currently there are $300 billion stocks and $730 billion bonds traded daily. By adding each sector
and multiplying it by one year (365 days) accumulates to $266 trillion per year. Implementing a
small tax of 0.001% on financial transactions is projected to earn $26.675 billion per year.
(Increase in Revenue: 26,675,000,000)
SECTION 3: Sub-SECTION E: Increase funding for U.S Department of Education for
accumulation of interest during pre-threshold term. With regard to Section 3; Accessibility to
threshold median income-based repayment system, the following section requires that all tax
revenue on stock and bond transactions are directed into the U.S Department of Education Budget
Division to assist paying student interest while they are in College and before approaching the

income threshold. It will cover the cost of accumulated interest on student debt (obtained
threshold), allowing for students to begin the repayment process with a fixed interest rate.

SECTION 5: Sub-SECTION A (A): Maximum tax reduction for loan forgiveness incentives is
2.00%,
while still ensuring companies and corporations pay a fair share of taxes, loan forgiveness tax
incentives provide opportunities for employees to pay off their student debt quicker. Private sector
companies are able to take advantage of the incentive up to 2.00% reduction