Congress already passed an Obama measure to cap student loan payments at 15 percent of a graduate's discretionary income and forgive any outstanding balance after 25 years. This year, the Democratic National Committee platform held out "avenues for students to manage their federal student loans so that their payments can be only 10 percent of what they make each month." Actually, last year, the president issued an executive order that set a loan payment cap of 10 percent of income and proclaimed forgiveness of outstanding loan balances after 20 years for some graduates.
Romney's plan is to offer smarter financial aid, countered campaign policy director Lanhee Chen, "by working to create more diverse, affordable options for postsecondary education and by simplifying the financial aid system."
The Democrats' 2012 platform warns: "Tuition at public colleges has soared over the last decade and students are graduating with more and more debt; but Mitt Romney thinks students should 'shop around' for the 'best education they can afford.'"
America's student loan debt now exceeds the public's unhealthy credit card debt. Still, the Democrats think it's bad for young people to think about finances when they pick a school.
The president's remedy is to tell Americans: Vote for me and you can take out really big student loans. Be not afraid. As Vedder noted, "you've got a pretty good chance you won't have to pay it back."