Student Loan Issue Solutions

From the angles of borrowers and lenders, propose the followings to increase likelihood of loan payback:

  1. Grace Period: A 4-year grace period with interest paused for people with annual income or hourly wage below a certain number to help them be financially sound enough to pay back the loan later. For example, medical school graduate students with the MOST debts among all the student loan holders will work 24/7 as residents in the hospitals for a few years but with low salary. However they definitely can pay back the loan after the grace period, just need the help to go through the residency period of time.

  2. Yearly Loan Limits for Institutions: Establish a yearly loan limit for each institution respectively based on a set of criteria and use it to decide if more loan can be granted to its applicants each year. This way, if the graduates from an institution are not paying back the loans thus the limit is reached, there will be no new loan granted to this institution during that year.