U.S. Sen. Chuck Grassley (R-IA) photo credit: CQ-Roll Call, Inc via Getty Images
(Photo by Caroline Brehman/CQ Roll Call)
Want to cancel your student loan debt?
One U.S. senator says focus instead on these 3 ways to tackle your student loan debt.
Here’s what you need to know.
Student Loans
On the 2020 presidential campaign trail, candidates such as Elizabeth Sanders (D-MA) and Bernie Sanders (I-VT), among others, have offered several proposals to reduce student loan debt. For example, Warren has proposed eliminating tuition and fees at all public two-year and four-year public colleges. Sanders also believes that public four-year and community colleges should be free. Both Sanders and Warren also have proposed some form of student loan debt cancellation.
Sen. Chuck Grassley (R-IA) says that if you want to tackle student loan debt, cancelling student loan debt is not the answer. In a Washington Examiner editorial, Grassley says instead to focus on the underlying problems that cause high college tuition and student loan debt. Grassley recognizes that the cost of college is too expensive, citing that student borrowers in his home states of Iowa owe, on average, about $30,000 of student loan debt. He also recognizes that it’s difficult for students to compare scholarships and financial aid awards across colleges. As a result, students may borrow too much money or make less informed decisions.
To help reduce student loan debt and help students make better decisions, Grassley offers three legislative proposals. Let’s see how they can help you.
1. Net Price Calculator Improvement Act
Goal: Help students understand how much college really costs
How: Colleges and universities would be required to place a net cost calculator on their website so that students can easily calculate the cost of college. The U.S. Department of Education, led by Secretary Betsy DeVos, would develop a universal calculator that simultaneously would compare the cost of multiple colleges and universities.
Intended Result: With student loan calculators, students are more informed about their educational choices, while colleges and universities are more focused on cost transparency, which could lead to lower tuition as they compete for students.
2. The True Cost of College Act
Goal: Make a universal, uniform financial aid offer that can be used at all colleges and universities
How: A transparent financial aid offer would, on a uniform basis, would clearly show the cost of college, the amount of scholarships and grants, and the student’s remaining financial responsibility.
Intended Result: Increased transparency means students are more empowered to make better financial decisions.
3. The Know Before You Owe Federal Student Loan Act
Goal: Improve the student loan counseling process to ensure students do not borrow more than they need
How: Rather than default to the maximum borrowing amount, ask students how much money they need. Also, provide students with information about their likely monthly income and student loan payment after graduation.
Intended Result: Students can make more informed financial decisions while in school so they effectively can manage their student loan debt after graduation.
Student Loan Repayment
If you have student loans and want to know how to pay them off faster, make sure you understand all your options. Whether you want to learn more about student loan refinancing, student loan consolidation, income-driven repayment plans or student loan forgiveness, you have more options than you realize to live a better financial life.
