For many Tennessee residents with overwhelming debt, student loans may be a contributing factor. As college tuition continues to rise, an increasing number of people are faced with the challenge of paying off overwhelming amounts of student loans. In addition, with the job market still in a state of recovery, securing a job with an income that can make student loan payments can be difficult.
Currently, student loan payments are made just like any other type of bill. However, one congressman has proposed a bill that would change the system of student loan payments. Instead of borrowers actively making monthly payments, the payment would be automatically deducted from the borrower’s income.
The congressman’s proposal suggests that 15 percent of a borrower’s monthly income would be deducted and paid towards student loan debt. So, the payment amount would be adjusted for each borrower’s income.
There are varying viewpoints on student loans as the amount of student loans held by Americans continues to grow. Likewise, American borrowers will surely hold various viewpoints on this proposal. However, as this bill is still just a proposal, the current system of making loan payments is still in place.
Anyone with large amounts of unpaid student loans may feel like it is impossible to pay off all of their loans. For some people, filing for bankruptcy may seem like a reasonable solution to overwhelming student loans. While bankruptcy cannot entirely eliminate student loan debt, a Chapter 13 bankruptcy filing may be able to help a person reorganize their debts. By doing so, a borrower may be able to create a payment plan and worry less about student loan debts.
Source: ABA Journal, “US Lawmaker is crafting plan to withhold student loan payments, just like income tax,” Martha Neil, Dec. 6, 2012