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US S2343

US S2343
Stop the Student Loan Interest Rate Hike Act of


summary

Introduced
In Committee
Crossed Over
Passed
Dead

Introduced Session

112th Congress

Bill Summary

Stop the Student Loan Interest Rate Hike Act of 2012 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to make the 3.4% interest rate on Direct Stafford loans first disbursed to undergraduate students between July 1, 2011, and July 1, 2012, applicable to Direct Stafford loans first disbursed to undergraduate students between July 1, 2011, and July 1, 2013. Amends the Internal Revenue Code and title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to require certain shareholders of a subchapter S corporation engaged as a partner in a professional service business to include income or loss attributable to such business in their net earnings from self-employment for employment tax purposes. Restricts such tax treatment to shareholders whose modified adjusted gross income exceeds a specified amount that varies based on their tax filing status. Defines a "professional service business" as any trade or business providing services in the fields of health, law, lobbying, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, investment advice or management, or brokerage services.

AI Summary

This bill, titled the Stop the Student Loan Interest Rate Hike Act of 2012, makes two primary changes: first, it extends the 3.4% interest rate on Federal Direct Stafford loans for undergraduate students, originally set to expire on July 1, 2012, to July 1, 2013, meaning students who receive these loans during this extended period will continue to benefit from the lower rate. Second, it modifies tax rules for certain shareholders of S corporations, which are a type of pass-through business, that are involved in professional service businesses, such as law, medicine, or accounting; for shareholders whose income exceeds specific thresholds (e.g., $250,000 for those filing jointly), their share of business income will be subject to self-employment taxes, a change intended to ensure fairer tax treatment for these high-income individuals.

Sponsors (23)

Last Action

Returned to the Calendar. Calendar No. 365. (on 05/24/2012)

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