The United States is currently faced with ~$900 billion+ in federal student debt.
I propose a 25% across the board debt forgiveness for all federal student loans, with up to 50% of relief for those who completed their degree/course/certification. Followed by a 10 year moratorium on interest & fees.
After 10 years, a fixed interest rate not exceeding 2% for all subsidized programs: professional, graduate & undergraduate.
Unsubsidized program loans would not exceed 4%.
A cap on fees and penalties would be instituted, to say, a maximum of 5-10% of the principal balance remaining, which would prevent those who lose their ability to pay from falling impossibly behind, yet to still provide incentive for timely repayment & penalties for default.
More info:
http://on.fb.me/ouDzN4