Student Loan Relief and Accountability Act (or #GetItPaidAct

Proposal: Student Loan Relief and Accountability Act (or #GetItPaidAct

Section 1: Short Title

This act may be cited as the “Student Loan Relief and Accountability Act (or #GetItPaidAct of [Year]).”

Section 2: Reduction of Student Loan Debt

Implement a comprehensive plan to reduce student loan debt by 75% for eligible individuals, dividing the responsibility for loan repayment between the educational institution, the student, and the employer.

Section 3: College or University Responsibility

1.	Allocate 50% (2/4ths) of the student loan debt to the college or university only if the graduate is unable to find employment in a field related to their degree within a reasonable time frame (e.g., 12 months post-graduation).
2.	If graduates find employment in their field of study or in a job where their degree is applicable, the college or university is not responsible for covering any portion of the debt.
3.	This provision targets degrees with limited job prospects, encouraging institutions to avoid offering programs that fail to prepare students for employment in relevant fields.

Section 4: Student Responsibility

1.	Hold students accountable for 50% (2/4ths) of the original student loan debt.
2.	Prohibit the use of taxpayer money for the repayment of student loans.
3.	Establish income-based repayment plans to ensure students pay back loans in manageable amounts relative to their financial circumstances.

Section 5: Employer Responsibility

1.	Employers must contribute 25% (1/4th) of the student loan debt if the graduate is employed in a field directly related to their degree.
2.	Employers may claim tax write-offs for their loan contributions until the debt is fully paid off.

Section 6: Loan Forgiveness Restrictions

1.	Prohibit government-sponsored student loan forgiveness programs.
2.	Emphasize personal responsibility, with the expectation that individuals repay their loans through the structured plans provided in this act.

Section 7: Implementation and Administration

1.	Task an appropriate federal agency with the implementation and administration of this act.
2.	Establish clear guidelines and oversight mechanisms to prevent abuse and ensure compliance by educational institutions, employers, and students.

Section 8: Public Awareness and Education

1.	Launch a public awareness campaign to inform students, educational institutions, employers, and the general public about the provisions and benefits of this act.
2.	Provide resources to ensure that students understand their rights and responsibilities related to student loan repayment.

Section 9: Pre-Enrollment Career and Employment Outlook Education

1.	Free Career and Employment Outlook Classes for Prospective Students:
•	Require all colleges and universities to offer free, publicly accessible classes (in-person and online) for anyone considering attending the institution.
•	These classes must provide:
•	Employment statistics for each major offered.
•	Average starting salaries for careers in those fields.
•	Job market demand, both locally and nationally.
•	Risk and reward assessment of different majors.
•	Financial literacy, including evaluating student loan needs based on potential earnings.
2.	Employer Input for Educational Programs:
•	Create a national, publicly accessible database where employers can input the degrees and qualifications they seek for job openings.
•	Universities and colleges can use this data to tailor their academic offerings, ensuring that their programs meet real-world job market needs.
3.	Acknowledgment of Risks by Students:
•	After completing these free courses, prospective students must sign an acknowledgment form confirming they understand the career prospects and risks associated with their intended major.
•	Institutions are not liable for the employment outcomes of graduates, as students have been informed of the risks and rewards of their chosen major.
4.	Protection for Institutions:
•	Relieve educational institutions from any blame if students, despite being well-informed, choose high-risk majors. The responsibility for career outcomes remains with the student.

Section 10: Effectiveness and Evaluation

1.	The law will take effect upon passage, with a reasonable timeframe given for educational institutions, students, and employers to adjust to the new requirements.
2.	A periodic review will be conducted by the overseeing federal agency to ensure that the act’s provisions are achieving the desired outcomes of reducing student debt, enhancing employment, and improving the alignment of education with job market demands.

Key Benefits of the Act:

•	Balanced Responsibility: This act ensures that students, educational institutions, and employers all share in the responsibility for student debt, reducing the burden on individuals while maintaining fairness.
•	Informed Decisions: By requiring free pre-enrollment career outlook classes, students will make more informed choices about their education, avoiding costly mistakes that could lead to unnecessary debt.
•	Employer Involvement: Employers will have a stake in the system, contributing to the solution while benefiting from tax incentives, helping align academic programs with real job market needs.
•	No Burden on Taxpayers: By prohibiting the use of taxpayer money for loan repayment, the act ensures that the cost of education is borne by the parties directly involved without increasing public debt.
•	Protection for Educational Institutions: Colleges are only responsible for loan repayment if the degree offered provides little to no employment opportunities, encouraging the development of more practical, in-demand programs.
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When Biden was proposing his student debt forgiveness, I was thinking of a proposal to cap or eliminate the interest, but still have the borrower pay off the principal. The loan servicing business should not be such a prosperous business. Borrowers need to understand the economics of their loans, and I think the institutions are also at fault for their part in charging inflated tuition and fees to students and parents who clearly cannot afford the costs. If car companies and other industries can make super low interest loans, why can’t it be fine for education?

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I like this plan of action. I believe the majority of student loan holders want to pay off their loans. Of course, there is always a remnant who don’t want to be responsible for their debt; they are the exception, I believe.

This plan is reasonable. The interest charges on school loans is deceptive. These loans are not offered to students for nothing. On the contrary, student loans have become a profitable business and that is the problem. I believe this type of solution can be helpful to the lending institution and the student debt holder. Each side will reach their objective in a manner that is practical and more likely to produce positive results.