Student-Loan Collection Targeted for Overhaul in Congress

Parents Forum
1

<p>“Congress will consider overhauling debt collection in the $100 billion-a-year U.S. student loan program, replacing it with automatic withdrawals from borrowers’ paychecks tied to their income – a system used in the U.K.” …</p>

<p>Looks like they want to get serious about payments.</p>

<p>[Student-Loan</a> Collection Targeted for Overhaul in Congress - Bloomberg](<a href=“http://www.bloomberg.com/news/2012-12-04/student-loan-collection-targeted-for-overhaul-in-congress.html]Student-Loan”>Student-Loan Debt Collection Targeted for Overhaul in U.S. Bill - Bloomberg)</p>

<p>More: [New</a> Bill Would Take Income-Based Student Loan Payments Straight From Your Paycheck ? The Consumerist](<a href=“http://consumerist.com/2012/12/04/new-bill-would-take-income-based-student-loan-payments-straight-from-your-paycheck/]New”>New Bill Would Take Income-Based Student Loan Payments Straight From Your Paycheck – Consumerist)</p>

2

<p>Seems like a good way to encourage under-the-table jobs for those struggling. And since a large problem is coming from those who don’t have jobs or work minimum wage… I fail to see how this is going to help.</p>

<p>But that could just be my pessimism.</p>

3

<p>maybe they should stop offering everyone all the money they want… might help slow the ballooning college costs too.</p>

4

<p>sg, I’m not sure what you mean. I assume this would only be applicable to federal loans and federal loan limits are pretty low. At least for undergrad.</p>

5

<p>I wonder how it will work when a borrower marries, the indebted spouse quits working, and the other spouse makes, say $150,000.</p>

6

<p>It’ll make it harder for people with student loan debt to get W-2 jobs, too. Garnishments are a PITA for employers. It’s illegal to discriminate in hiring based on the existence of garnishments, but it’s extremely difficult to prove you weren’t hired because of that.</p>