Student loan payment may soon be made directly from paychecks

(Associated Press)

WASHINGTON – Student loan payments could be deducted directly from paychecks as part of a plan that would also ease penalties on those who did not earn an income.

The plan from Republican Sen. Lamar Alexander would allow repayment of student loans to be based on a borrower's income, with no more than 10 percent of earnings allowed to be removed.

Alexander's plan would include monthly payments on a 10-year schedule. Should a borrower lose their job, or fail to earn any money, they would not owe anything.

Currently, nearly 40 million borrowers own $1.5 trillion in student loan debt.