Senator Suggests New Way To Pay Student Loans

A US Senator is proposing a plan that would have college graduates pay back student loans form their paychecks.

Senator Lamar Alexander suggests loan payments should be automatically taken out of income, like taxes.

He says the borrower would not pay more than 10% of their discretionary income. If they lose their job or don not make enough they would not pay anything and it would not affect their credit score. If the borrower does not like that plan, they can opt for the existing 10 year loan repayment plan schedule.

The Senator believes it will help loans get paid off quicker.