Old Student Loan Models ‘Aren’t Working Anymore’
Career College Central summary:
Sen. Jeff Merkley (D-Ore.) announced that he’d introduce a new student loan bill when lawmakers return to Washington in September.
Merkley's bill, the “Pay It Forward” Guaranteed College Affordability Act, would replace federal loans with up-front payment of college costs in exchange for repayment based on the graduate’s income.
His announcement came after President Obama signed a student loan bill into law Friday. Some liberal Democrats opposed the bill and argued that Congress shouldn’t “profit off the backs of students." They said the bipartisan bill would generate $184 billion of federal revenue over 10 years. They also complained the bill didn’t address college affordability and existing student loan debts.
Merkley said the country needed “bold new initiatives” that prioritize the middle class when it comes to student loans. There is currently $1 trillion in student loan debt in the United States.
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