WASHINGTON, D.C. (WTXL) - A U.S. senator is proposing for student loan payments to come directly out of a borrower's paycheck.
According to Forbes, U.S. Senator Lamar Alexander, R-TN, is proposing a automatic payroll deductions when it comes to student loan payments.
It would worlk similar to taxes and Social Security, where federal student loan payments would be deducted from your paycheck before it's even deposited into your bank account.
Forbes reports that Alexander proposed consolidating the nine current student loan repayment plans into two: a standard 10-year repayment plan and a Revised Pay As You Earn (REPAYE) plan.
According to Forbes, under the REPAYE plan, loan payments would have a cap of 10 percent of discretionary income and borrowers could receive student loan forgiveness after 20 years for undergraduate student loan debt or 25 years for graduate student loan debt.
It's unclear what would happen if borrowers lose their jobs.
