Well, it looks like the government is tired of your deferred payments and is looking to pull its money directly out of your paycheck, under a new student loan repayment plan.
Earlier this month, Republican Sen. Lamar Alexander proposed a student loan repayment plan that could affect over 40 million borrowers who owe about $1.5 trillion in student loan debt, collectively.
Alexander, who chairs the Health, Education, Labor, and Pensions Committee, said the repayment plan would be based on a borrower’s income. “It would never require the borrower to make payments of more than 10 percent on their income,” he said.
“And it makes sure if there were no money earned, there would be no money owed,” Alexander said. “And that would not reflect negatively on a borrower’s credit.”
The senator also proposed a 10-year payment plan with equal monthly payments.
He also suggested an accountability program that will be based on whether borrowers were repaying their student loans or not. Alexander stated that it should lower the cost of tuition for some programs while discouraging schools from offering programs “that are not worth it to students.”
“All three of these proposals should help students afford college and make sure that the degree they earn is worth the time and money they pay for it,” he said.