A GOP proposal could snatch your student loan payment right from your paycheck

[mfcorey1]

https://www.cnbc.com/2019/02/13/a-gop-proposal-would-snatch-your-student-loan-payment-right-from-your-paycheck.html



Lawmakers are proposing a massive overhaul to the student debt system.

Borrowers' monthly loan bills would be automatically deducted from their paychecks.

The plan quickly drew criticism from consumer advocates, who called it "mandatory wage garnishment."

Student loan borrowers would have their monthly bills automatically deducted from their paychecks if a Republican-backed proposal becomes law.

Sen. Lamar Alexander, R-Tenn., chairman of the Senate Health, Education, Labor and Pensions Committee, laid out the details of the massive overhaul to the student loan system in a speech earlier this month. The changes could affect some 40 million people.

Average debt at graduation is currently around $30,000, up from $10,000 in the early 1990s. The country's outstanding student loan balance is projected to swell to $2 trillion by 2022.

Currently, borrowers are matched with companies that administer the federal student loan programs, and they have some 14 different ways to repay their education debt.

[Hoyt]

1. I get it's a GOPer plan, so suspect. But the provision to limit the amount you pay

to 10% of DISCRETIONARY income doesn’t sound that bad to me if discretionary income is computed fairly.

The big problem for the future is the cost of college education, and the for profit schools that are a scam like trump’s so-called university.

[AncientGeezer]

2. I got behind on a power bill back in the (Jack Daniels)day...I had a garnishment

of 10%.. took 2 yrs to pay it off...I'm not sure I see the problem with this.

If you make a concerted effort to pay a debt back...they will pretty much leave you alone

[Ms. Toad]

4. The difference is you got behind. This removes the power to manage

your own debt repayment - even when you are current on your payments.

There are problems with the companies managing student loan repayment - particularly when you are in a job that forgives all or a portion of your debt. So you fix the companies - not penalize the borrower.

[AncientGeezer]

5. No...this actually manges it completly...If you owe...you should pay..right?

Let's say a FICA withholding....Social Security, Medicare....direct withdraw...right?

My hit...direct withdraw...I got behind because of my wife's life support while she was dying of cancer and made me promise too keep her home..I was a borrower....of the utilities.

A Student loan...direct withdraw. Don't have to manage anything...you budget for it.

[Ms. Toad]

8. This bill has nothing to do with whether I should pay or not.

The point is that until I demonstrate my inability to manage my own money, the government does not get to pick my pocket at a time, and in an amount, of their choosing. If I choose a direct withdraw, that is perfectly fine. But it is my choice. Not theirs.

How I manage my money is my business - not the governments.

[hughee99]

3. Like they do with taxes? Nt

[smirkymonkey]

6. Motherfuckers!

If you are a wealthy individual or a corporation and you can't pay your debts back, you just declare bankruptcy and get off scot free.

If you are a struggling worker or unemployed person who can't keep up with your student loans, you are fucked for life. This just makes me sick. There is no relief for the poor or middle class, but the rich can declare bankruptcy over and over again and never have to pay for the consequences of their stupidity or irresponsibility.

Bring back the guillotine.

[dalton99a]

7. This shit should be DOA in the House.

[winstars]

9. YES!