Propsal for policy change is to allow current repayees to subsidize their student loans with earned Social Security benifits and to allow future students to ezchange SSI benefits for student loans until paid in full.
- Current repayees would recieve the option to use already earned SS benefits to offset or delete outstanding federal student loans.
- All new students can elect to have SS withholdings directed toward tuition payment with lowered 5% interest until paid in full; at which SS withholdings would be redirected to payee’s SS benefits per normal processes.
The idea would allow those that have been working to use their SS benefits to cover their investment and then reset their SS benefits to default once sufficient payment is achieved as well as allowing future workers to direct funds that would already be withheld toward their investment and then allow them to still recieve their normal benefits afterward.
The question about retirement funds for those individuals may arise to which there are a multitude of options including IRAs and 401Ks.