Senators Introduce Risk Sharing Student Loan Plan
Last week Senators Reed (D-RI), Durbin (D-IL), and Warren (D-MA) unveiled a plan that would revamp student loans primarily by employing a “skin in the game” tactic for institutions. According to a near-final version of the bill, the Protect Student Borrowers Act of 2013 would establish provisions that require colleges to repay a portion of the the loans (including interest and collection fees) that are in default. As a consequence, the bill would effectively prevent aid administrators from having any control over borrowing by prohibiting them the ability to deny student loans.
Read the whole article originally published in: Todays News Feed.