Sen. Rand Paul unveils plan to pay off student loans with 401k savings - Business Insider

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Sen. Rand Paul unveils plan for people to pay off student loans by dipping into their retirement savings

on Tuesday that would allow people to pay off their student loans by dipping into their retirement savings.

Under Paul's plan, called the HELPER Act, Americans could take out $5,250 from their 401k annually — tax-free without any penalty — to pay for college or reduce the student loan burden. It would also allow that money to be used for a spouse or dependents.that his "pro-taxpayer plan" would "empower the American people to reduce the burden of debt, realize the dreams they studied hard to achieve, and grow their retirement savings.

The plan was met with some criticism as some said it undercuts the purpose of a 401k and makes it even harder to save up for retirement and plan for the future. The brokerage firm Fidelity InvestmentExperts downplayed the proposal's benefits for young adults already saddled with high amounts of debt.told MarketWatch.

"They're not preparing anywhere close to previous generations at this point in their life cycle for future needs. Retirement is a long way off, but they need to start saving early on to be prepared and they're just not going to be prepared if they take that money to pay down student loan debt."

 

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People beat him up for the shite that comes out of his mouth!

Restructure thru a Chapter 11 type process. Penalize the schools who have the most kids defaulting by cutting off federal funding. Charge higher tuition for majors with better career prospects and lower for those that don’t. Maybe tell your kid how much electricians make!!

Means tax free dollars to pay off student loans, not the best option, but it’s a start

If there is any retirement savings to begin with

A) You're not likely to have much of 401K built up into well into middle age B) Many economic blips can render that amount much smaller and less useful C) It assumes economic conditions will allow you to make up the shortfall over time, which is iffy, at best.

Karen spent $100k to get the “college experience” and a dubious degree and now we’re all supposed to pay for it

That’s how most of us did it

This is dumb. We already have issues with newer generations NOT saving for retirement. Education reform is what is needed. No need for 22 year old Jill to go in $100k in debt for majoring in art history

Just pushes the problem downstream. What will people do when it’s time to retire? Oh wait, I’m sure there will be some new government program to solve this issue too

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