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https://thehill.com/homenews/education/4049576-senate-republicans-introduce-plan-to-tackle-student-loan-debt/amp/
Senate Republicans are unveiling their own plan to tackle student debt as the Supreme Court is set to rule soon on President Biden’s student debt relief program.
The GOP package, called the “Lowering Education Costs and Debt Act,” consists of five bills that the senators say will address the root causes of the student debt issue such as the increasing price of college and students taking out loans they can’t afford.
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The “College Transparency Act (CTA)” would reform the college data reporting system so students have better information about outcomes at schools before committing to a university.
The “Understanding the True Cost of College Act” will require schools to have a similar style for their financial aid letters with a breakdown of the aid so students can better compare offers.
The “Informed Student Borrower Act” requires students to be more informed when applying for a loan by acknowledging they received student loan entrance materials or they participated in entrance counseling.
The students would receive materials that show how long it would take to pay off their loans, how much the monthly payments would be and what they will likely make going to a certain school and program. The students would receive this information yearly.
The fourth bill addresses the nine different student loan repayment options the Department of Education offers. These options, with eligibility based on income and loan type, gave borrowers different timeline options for paying off their loans and the amount they would owe each month.
The bill cuts those repayment options down to two to simplify the process. The standard 10-year repayment plan for borrowers would remain and the REPAYE program would stay, with some changes. The REPAYE program gives loan forgiveness earlier to low-income individuals who have low balances on their loans.
Additionally, loans can not be given to undergraduate or graduate programs that have shown the earning potential is not higher than a high school graduate or bachelor’s degree under the bill.
The last bill in the package aims to put pressure on graduate schools to lower costs, which account for almost half of student loan debt taken out each year.
The legislation would end Graduate PLUS loans, which had their borrowing limit removed in 2006. Republicans say this type of loan has increased the cost of college, calling it “inflationary.” Students would still have other loan options for graduate school such as Stafford loans, which are offered by the government, but have limits on borrowing.
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(R)’s have been criticized, often rightly, for not offering up solutions of their own. Well, here are some. All seem pretty sensible to me.
Senate Republicans are unveiling their own plan to tackle student debt as the Supreme Court is set to rule soon on President Biden’s student debt relief program.
The GOP package, called the “Lowering Education Costs and Debt Act,” consists of five bills that the senators say will address the root causes of the student debt issue such as the increasing price of college and students taking out loans they can’t afford.
…
The “College Transparency Act (CTA)” would reform the college data reporting system so students have better information about outcomes at schools before committing to a university.
The “Understanding the True Cost of College Act” will require schools to have a similar style for their financial aid letters with a breakdown of the aid so students can better compare offers.
The “Informed Student Borrower Act” requires students to be more informed when applying for a loan by acknowledging they received student loan entrance materials or they participated in entrance counseling.
The students would receive materials that show how long it would take to pay off their loans, how much the monthly payments would be and what they will likely make going to a certain school and program. The students would receive this information yearly.
The fourth bill addresses the nine different student loan repayment options the Department of Education offers. These options, with eligibility based on income and loan type, gave borrowers different timeline options for paying off their loans and the amount they would owe each month.
The bill cuts those repayment options down to two to simplify the process. The standard 10-year repayment plan for borrowers would remain and the REPAYE program would stay, with some changes. The REPAYE program gives loan forgiveness earlier to low-income individuals who have low balances on their loans.
Additionally, loans can not be given to undergraduate or graduate programs that have shown the earning potential is not higher than a high school graduate or bachelor’s degree under the bill.
The last bill in the package aims to put pressure on graduate schools to lower costs, which account for almost half of student loan debt taken out each year.
The legislation would end Graduate PLUS loans, which had their borrowing limit removed in 2006. Republicans say this type of loan has increased the cost of college, calling it “inflationary.” Students would still have other loan options for graduate school such as Stafford loans, which are offered by the government, but have limits on borrowing.
———————
(R)’s have been criticized, often rightly, for not offering up solutions of their own. Well, here are some. All seem pretty sensible to me.
