Senator suggests deducting student loan payments from paychecks

A US Senator says he has a plan to help college grads pay off their student loans more quickly.

The idea? Take the payments from their paychecks.

Republican Senator Lamar Alexander from Tennessee says loan payments should be automatically taken out of income, like taxes.

Alexander suggests no more than ten percent of their discretionary income.

This proposal is generating a lot of opinions.

For those who question the mandatory nature of this, people can opt for a 10-year loan repayment schedule.

As for each person's ability to pay, he says if someone loses their job or doesn't make enough money, they wouldn't have to pay anything.

Also, this would not affect anyone's credit score.

-----
Follow us on YouTube
Send a News Tip to Action News
Learn More About 6abc Apps
Copyright © 2019 WPVI-TV. All Rights Reserved.