Warren want Democrats to deliver - Face the Nation

[Hoyt]

3. What Obama did was the way to go on student loans, but it needs better thresholds.

Here’s a description of Obama’s plan:

“ Pay As You Earn (PAYE)

“Pay As You Earn (PAYE) is an income-driven repayment plan implemented by former President Obama in 2012. In this plan, payments are calculated as 10 percent of your discretionary income. The repayment term is 20 years, after which time the remaining balance is forgiven. Borrowers must have received their first student loan on or after Oct. 1, 2007, and they must have taken out a Direct Loan or Direct Consolidation Loan on or after Oct. 1, 2011.

“PAYE is designed for students with financial need. To qualify, the amount you would pay on PAYE must be less than what you would pay on the standard 10-year repayment plan.”

Think the calculation of discretionary income needs to be improved to help borrower, and the repayment percentage needs to be reduced for lower income individuals. Also, loan balances should be dischargible in bankruptcy. Plus, gotta make education more affordable.