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![handle is hein.amenin/aeiadca0001 and id is 1 raw text is:
Key Points
The higher ec~uo nariraive hs. been dornnar:v by te stuider loa ocriis as of i
While the rngit-iAe of ths Ikrobem V' ten oversold, b, -rowers do sometimes need
herp
However, deb forgiveness plans, such as those proposed by Sens. Bernre Sanders
(I-v- and izabeth Warren (D-MA), deliver the bi-gest benefits to those who need it
leas-.,
A better solution would be a govennert-sponsored n rne sAie agreeenr, in which
the arnourt due eah mo&nth depends only or how such the borrower ae ea-nrrrq9 and a
srprifi'ed IRS-mnaged iro Yrrvth dig: repayment sysbrn.
We hear a lot about how student loans are unar-
fo'rnable for borrowers. That notion was central in
the zo2o Democratic peimary race, with Sens. Bernie
Sanders (I.TT) and Elizabeth Warren (D-MA)
proposing to wApe away ii assivc aimnounts of debt,
Student loans--an oft-forgotten poicy issue in
days past-were addressed in the first COVID-9)
relief bill, even though 'nany other nor pressing
areas of the econony were left untouched.
The problen with generous debt forgiveness
plans like Sanders' and Warren's is that they deliver
the biggest benefit to those who need it least' (ci-
lege typically pays huge dividends daring a career,
Even with a student Man pap, ent, people with col
lege and graduate degrees are anong the more
well-off in the economy.
But sonetimes colrege doesn't pay off, and
borrowers do need help. We've tried to fix this
problem with a system for loan repayments that
relieves borrowers from having to make unafforda-
ble inonthly payents.. Lntitunateiy, that systern
doesn't workwell, because ovr. rime it has become
a ;bbied-rogether safety net of different pro.-
grams with different terms and rules for eiiibilitv.
Tbe result is that people who are underwater on
their investrment in college sometimes end op
defaulting on their loans and paying an unneees-
say price.
We need to replace this patchvork of programs
with a simple, universal program in which.u all 1 or
rowers repay their federal student debt through a
saigle plan- a goverffnet -sp,)Fs, :red incorme share
agreenent (ISA). Wi-le quietly embraced by con-
servatives fer several years, i:he idea of using ai ISA
program to replace 'Ie federal lending program
was formally proposed, for the first time as part of
Jeb Bush's campaeirg far the Republican nommina-
tion for president in 20. it is described in detail
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