The U.S. Department of Education is officially seeking ideas for improving its rules and regulations on student loans. The Project on Student Debt has developed a Five-Point Plan for Fair Loan Payments that fits the bill. It will help reduce the burdens of student debt by:
- Limiting student loan payments to a reasonable percentage of income.
- Recognizing that borrowers with children have less income available for student loan payments.
- Protecting borrowers from high interest charges when they face hardship situations.
- Canceling remaining debts when borrowers have made regular payments for 20 years.
- Simplifying the application process for hardship deferrals and other repayment options.
This plan has been presented to the Department by an unusual coalition of student, parent, loan industry, and higher education groups.
Click here to ask the Department of Education to include the Five-Point Plan for Fair Loan Payments in the upcoming “negotiated rulemaking.”
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