coins spilling from jar and word student debt Alexander’s proposal would compel employers to deduct student loan payments from employee paychecks based on one of two methods. (Photo: Shutterstock)

Whether you’re keeping up with your student loan payments or not, you soon might not have a choice—if a new plan touted by Sen. Lamar Alexander, R-TN, chairman of the Senate Health, Education, Labor and Pensions Committee, moves forward.

Alexander’s proposal would compel employers to deduct student loan payments from employee paychecks based on one of two methods, according to a CNBC report: “one in which borrowers’ monthly bills are capped at 10 percent of their discretionary income and another that spreads their payments out over a decade.” The change could affect as many as 40 million people.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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