New Proposed Law Wants Student Loan Payments Taken Out Of Paychecks
A U.S. Senator proposed a new law to take student loan payments directly out of paychecks.
According to WILX, a United States Senator is proposing a new law to combat student loan debt in the U.S. Senator Lamar Alexander, R-Tennessee, is proposing that student loan payments be taken directly out of paychecks, similar to the way taxes are taken out.
Under this proposed law, a borrower would not pay more than 10% of their discretionary income, according to WILX. Discretionary income is the income remaining after taxes and other mandatory charges are already taken out. So think of your paycheck now, what you get after Social Security, State tax, and all other taxes are removed, then remove another 10% from that paycheck.
The proposed law also states that if a borrower were to lose their job, they would not pay anything and it would not affect their credit score. Critics of the law are calling it 'mandatory wage garnishment', according to WILX.
You know, we could always start with lowering the cost of college since it's inflated so much...just saying!