'Skin in the Game' on Loans

Michael Stratford:

A group of Senate Democrats announced Thursday a new push to provide student loan borrowers with more protections and hold colleges more accountable for loan defaults.

In a call with reporters, Senators Richard Durbin of Illlinois, Jack Reed of Rhode Island and Elizabeth Warren of Massachusetts highlighted a package of new and existing proposals aimed at reducing the burden of student debt. Durbin acknowledged that the senators had had "limited success" in getting Republican support for the measures, but said they will be a centerpiece of the Democratic agenda in the Senate in 2014.

One of the more controversial new proposals, to be introduced by Reed, would require colleges with high student loan default rates to pay a penalty to the government that is proportional to the defaulted debt.

Posted by Jim Zellmer at January 5, 2014 12:09 AM
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