Some people want to change student loan forgiveness programs, including Public Service Loan Forgiveness. He wants to eliminate interest rates on federal student loans. Since there is no cap on federal student loan interest, balances can increase with no limit, causing student loan balances to double or triple in many cases. Senator Rubio would eliminate federal student loan interest, and would replace it with a flat, one-time fee paid out over the loan's repayment term. In theory, replacing student loan interest with some sort of flat fee could be game-changer for student loan borrowers, if it solves the problem of negative amortization and runaway balance growth.

Source: Forbes April 03, 2019 13:41 UTC