Senator: Let’s Take Student Loan Payments From Paycheck

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A US senator is proposing a plan that would have college graduates pay back student loans from their paychecks.

Senator Lamar Alexander suggests loan payments should be automatically taken out of income like taxes.

He says the borrower would not pay more than 10-percent of their discretionary income.

If they lose their job or do not make enough they would not pay anything and it would not affect their credit score.

According to the Tennessee Republican– if the borrower does not like that plan– they can opt for the existing ten-year loan repayment plan schedule.

He believes it will help loans get paid off quicker.

Alexander is proposing his student loan repayment plans as part of reauthorizing the higher education act.

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