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Student Loans

The student loan program has mushroomed into a galling yoke to students and the economy. The average student owes just over $35,000 in student loans. It is not unusual for dental students to owe $500,000 in student loans and medical students to owe more than $300,000 in student loans. There are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt in the U.S. Student loan debt is now the second highest consumer debt category - behind only mortgage debt - and higher than both credit cards and auto loans. The default rate, loans taht are more than 90 days in arrears is 11.4%

This crises cannot be solved overnight, however I propose the following:

1. All student loans should have a fixed interst rate of 1%

2. Student loans for nursing and MD programs should be interest free to attract people into these programs to lessen the severe shortage in these professions

3. Student loan debt should be allowed to be discharged in certain bankruptcy cases

4. Loans that are more than 10 years delinquent enforcement shpould be for the principal only, the interest should be eliminated to encourage repayment


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Think…Cheadle for Congress!!!