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| Quick Takes |
We're a few days away from the next Democratic debate, where (I hope) we'll learn more about what the candidates want to do, and how they want to do it.
At least a few of them have come out with plans for free college and/or to wipe out existing student debt; both of those ideas have strong support from some quarters, and equally strong disapproval from others.
On the plus side? Moves such as free college 'level the playing field' for people who cannot afford to go to college, or who cannot get a well-paying job that will allow them any kind of chance to pay off the loans they took out to go to college. And that's an American Dream killer, right?
On the other side of the equation is the thinking that the government is not responsible for this, these are handouts not hands up, and for every story the candidates tell of someone who comes out of college with six-figure debt, there are an equal number of stories of people who had the debt, worked hard, and paid it off. Such is the conundrum we face, on this policy and on pretty much everything else.
But are there things we can do to help that are less drastic than "free college" and "no more student loan debt" that might be amenable to folks on both sides? A
bipartisan handful of Representatives - Suzanne Bonamici (D-OR), Paul Mitchell (R-MI) Seth Moulton (D-MA) and Brian Fitzpatrick (R-PA) - think there is. They've come together to submit the Streamlining Income-driven, Manageable Payments on Loans for Education (SIMPLE) Act, which is designed to keep loan holders from default. Take a look at the bill's
summary:
The SIMPLE Act protects some of the most vulnerable student loan borrowers—those who can’t afford full loan payments, those who are in immediate danger of default, those who have previously defaulted on their debt, and those who are totally and permanently disabled—from the severe consequences of default. The bill uses information already on file at the U.S. Treasury to connect borrowers automatically with existing protections, including affordable monthly loan payments. The legislation also automates the annual process for updating income information while enrolled in these plans, ensuring that borrowers continue to make affordable payments.
The data are stark. The bill notes that more then 8 million are in default, and the number continues to grow; more than a million people default on student loans each year, including a subset that has defaulted more than once. And, small balance loan holders are more likely to default than those holding six-figure balances - but the ones with six-figure balances are the ones we hear about all the time.
The consequences are also stark: the obvious hits on credit reports, which have all kinds of ramifications for people that can have a huge impact on their daily lives, as well as on their ability to pay back their loans; wage garnishment, withholding of tax refunds, and more.
So, what does the bill propose?