Posted on 12/03/2019 11:12:04 PM PST by Farcesensitive
U.S. Sen. Rand Paul wants to combat the rising debt load engulfing college students by allowing families to use their retirement savings to pay off their loans.
The Kentucky Republican introduced federal legislation late Monday that would allow students to dip into retirement accounts to help pay for college or make monthly debt payments. Under his bill, individuals could to take up to $5,250 — tax and penalty free — from their 401(k) or IRA each year, and their parents could divert thousands more.
Americans collectively owe about $1.5 trillion in student loans — more than twice the total of a decade ago. On average, last year’s graduates owed about $29,200 each, leaving college with a long-lasting financial burden, Paul said.
“It’s just hard for people to pay back,” he said in a telephone interview with The Associated Press. “Even people with graduate-degree educations are struggling to pay it back over a long period of time. We want to do something to try to help these kids pay off their loans.”
Paul’s bill is called the Higher Education Loan Repayment and Enhanced Retirement Act, or HELPER. He plans to pitch it in visits to college campuses in Kentucky in coming weeks.
(Excerpt) Read more at news.yahoo.com ...
Looks like the average pay is around $36,000/yr. That is not a nice income for a sweaty, hot, dangerous, tedious, thankless grunt job.
You are correct.
Obama tied the loans to Obama care
Most of the people I knew cosigned their kids loans and several have lost their houses.
The problem is t student debt.
The problem is a university system that has no restraints on spending, because the government allows ridiculous borrowing that constantly increases.
Better yet end federal funding of college.
Parents would be better off refusing to pay for nonsense degrees.
I give him credit for at least trying to come up with a creative solution.
This issue is a big ticking political time bomb. Sooner or later the younger generations burdened with student debt WILL vote themselves loan forgiveness.
Let me say that again. They WILL vote themselves forgiveness. Moral hazards be damned.
Doing something to diffuse the time bomb is smart political strategy for those of us who prefer to not see the country go full-bore Socialist.
I had Sallie Mae paid off complete within 7 years. But I drove the same ‘78 Toyota Corolla till I was 30 and didnt buy a house till I was 30 also. If I had, I could see putting off the student loans. I bet thats really whats happening.
the fact that We the People ARE going to wind up bearing this debt default we need to demand that kind of accountability be rendered
When you find yourself in a hole, stop digging. If these loans are so bad, stop ISSUING them before discussing forgiving them.
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