The student loan debt industry crisis has finally made its way to the White House. With so many people sinking further into debt and the effects rippling through other aspects of the economy, many big players in Washington are starting to weigh in on some possible solutions.
Out Of The Box Thinking
Senator Elizabeth Warren is working on some new legislation that could alleviate the burden experienced by most student loan borrowers. U.S. Senator Marco Rubio spoke last week about some untraditional ideas for alternatives to massive student loan borrowing for college.
One of his proposed ideas involves private investors paying for the tuition of college students in exchange for a portion of their earnings later on. This could mean students graduate with zero debt, starting their careers out in the black and not the red mark of owing on a loan. While the investment is technically a loan, the payment terms would be far more flexible and agreeable to the income of the student.
Another idea proposed by Rubio is a state-run repayment program. Similar to the Pay It Forward program already underway in Oregon, students would receive their education free of cost at the time of study and repay these costs to the state through manageable payments post-graduation.
Governor Bill Haslam of Tennessee is advocating a plan that would make the state’s community colleges free. Using money from the state’s lottery earning to fund the tuition costs, students would be able to have their community college credits paid for, significantly reducing the amount of loans need to be borrowed for a four year degree and encourage those who otherwise would not have been able to attend college enroll in courses.