A U.S. senator is proposing a plan that would have college graduates pay back student loans from their paychecks.
Senator Lamar Alexander, R-Tennessee, suggests loan payments should be automatically taken out of income like taxes are.
A Tennessee Senator named Lamar Alexander laid the plan out during a speech earlier in February and noted the changes could affect 40 million people. The proposal indicated that there would be two ways that borrowers could repay. One way would spread the loan payments out over a decade, while another would take the borrowers’ monthly bill and cap them at 10 percent of their income.
Senator Alexander commented on the proposal, saying “It makes sure if there were no money earned, there would be no money owed, and that would not reflect negatively on a borrower’s credit.”
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