Representative Tom Garrett (VA-5) has proposed an interesting bill aimed to deal with both the burgeoning student debt crisis and the looming insolvency of the Social Security program. From the Daily Progress:
“The Student Security Act of 2017 gives graduates loan forgiveness for allowing their full-retirement age for Social Security benefits to be increased.
It would allow $550 in loan forgiveness, which about the average cost for one credit hour at a public university, in exchange for raising the participant’s retirement age by one month. This equals $6,600 for each year a participant delays getting their benefits.
Under the legislation, participants can get a maximum of $40,150 in debt relief, which would mean they would not be able to claim Social Security benefits for six years and one month past the normal retirement age.
The Social Security Administration projects that the Student Security Program would save more than $700 billion of the lifetime of the program, which would be more than 11 percent of the amount needed to keep Social Security solvent.”
This is an interesting idea, but the bill has not made much headway. It will be one to keep an eye on after the tax reform package gets voted on this week. Here’s a link to the bill: https://www.congress.