Old Student Loan Models ‘Aren’t Working Anymore’

Career College Central summary:

  • Sen. Jeff Merkley (D-Ore.) announced that he’d introduce a new student loan bill when lawmakers return to Washington in September.
  • Merkley's bill, the “Pay It Forward” Guaranteed College Affordability Act, would replace federal loans with up-front payment of college costs in exchange for repayment based on the graduate’s income.
  • His announcement came after President Obama signed a student loan bill into law Friday. Some liberal Democrats opposed the bill and argued that Congress shouldn’t “profit off the backs of students." They said the bipartisan bill would generate $184 billion of federal revenue over 10 years. They also complained the bill didn’t address college affordability and existing student loan debts.
  • Merkley said the country needed “bold new initiatives” that prioritize the middle class when it comes to student loans. There is currently $1 trillion in student loan debt in the United States.

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