reduce the interest rate on college loans and consider loan forgiveness for low income students who graduate on time.

The federal government currently offers a variety of loan options for students. The interest rates on these loans should be capped at the interest rate of 5%. The Unsubsidized Stafford loan should be eliminated and more Subsidized Stafford loans should take their place. A large percentage of a person’s federal student loans should be forgiven if they complete their degree in a timely manner (5 years maximum for a typical undergraduate degree). Depending on a person’s grades, the percentage of loans forgiven should vary accordingly (e.g., 90% for A average, 70% for B average, and 50% for C average). This loan forgiveness for graduating on time will provide people with the incentive to concentrate on their studies and to begin contributing their skills and knowledge to our economy.