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Thursday, December 06, 2012

New Bill Would Take Income-Based Student Loan Payments Straight From Your Paycheck

Student Loan debt in the U.S. recently crossed the $1 trillion mark, with a good chunk of that owed to the U.S. government. In an attempt to streamline the whole process, a soon-to-be-introduced bill would replace the current system of debt collection with automatic payroll deductions tied to the borrower’s income.

Similar systems are already in place in the U.K., Australia, and New Zealand, and Wisconsin Representative Tom Petri plans to introduce the idea to Congress as soon as this week, reports Bloomberg.

Rather than paying huge fees to third-party bill collectors, the government would debit borrowers’ paychecks at an amount capped at 15% of income after basic living expenses.

3 comments:

Anonymous said...

Excellent! But $1 trillion debt,15% of income is laughable amount. Some more feel good laws.

Anonymous said...

Depending on how expensive an area the person lives in, there may not be much left after basic living expenses.

Anonymous said...

Sallie Mae and US Funds who call you to tell you to call Sallie Mae have no idea what basic economics are. If I make under 30,000 a year (yes I do) I would be willing to have a regular deduction made as long as it actually makes the debt go down and not get suck into the endless whirlpool of fees and interest penalties