Here’s an article that a friend recently sent me. The title is: “The Easiest Way To Reduce Your Student Loan Payment.”
The subtitle is: “Millions of Americans are struggling unnecessarily to repay their student loans. The federal government offers a solution.”
A quote from the article: “nearly half of Americans recently reporting that they’ve had to curb their spending due to their student debt.”
It doesn’t surprise me at all that many Americans are having to reduce their spending on other things to pay these nightmare loans. What does surprise me is that instead of a solution that would actually help, the government keeps trotting out yet another payment plan. Or claiming that the offered plans solve everything.
What they don’t mention is that most or all of these plans base the payment on the former student’s gross income.
Not their take-home pay, the amount they actually have to work with and pay bills from. No, they use the gross, which is the amount you make before
taxes, Social Security or anything else is taken out.
I bet that MANY of the Americans who say they are having to curb their spending are already on these payment plans. Rather than coming up with another new payment plan, the government needs to offer loan forgiveness to people who can’t afford to pay and who are not going to start earning more money. Like people at or near retirement age. Right now the Department of Education says that they do not take age or financial hardship into account when considering who should get loan forgiveness. This was in a letter I received from them. Those two considerations should be at the head of the list of things to be considered. Instead, our government keeps trying to find ways that people who simply don’t have the money can pay off these loans.
The laws need to be changed!