Rand Paul wants to allow students to dip into retirement accounts to pay off loan debt (solutions, dollars)

[sandsthetime]

Folks, this is what real leadership looks like. Rand is always busy offering solutions to everyday issues while the majority of the GOP (including President Trump) and Democrats, alike, twiddle their thumbs.

The Kentucky Republican is introducing federal legislation to allow individuals to take up to $5,250 — tax and penalty free — from their 401(k) or IRA each year to help pay for college or pay down student loan debt.

https://www.courier-journal.com/stor...bt/2594066001/

[Elliott_CA]

$5k a year is peanuts. That's no "solution." Rand Paul is an opportunistic flip-flopper: he hated Trump before he loved him.

[notnamed]

How many of those young adults with large student loan debts even have $5k in a retirement account to pull out?

[hooligan]

I don't see this as much of a "solution" for the student debt issue - for the reasons already listed, plus more.

[madison999]

Anything to avoid fixing the actual problems. Good job politician man.

[TwoByFour]

The only reason someone would use this law is that the money going into a 401(k) is not taxed. The problem is not everyone has a 401(k). Rand's law should simply allow up to $5k in pre-tax dollars to be used to pay off a student loan.

[robr2]

Originally Posted by notnamed

How many of those young adults with large student loan debts even have $5k in a retirement account to pull out?

Exactly. It's a solution being proposed to say that at least he tried.

[Annandale_Man]

Originally Posted by notnamed

How many of those young adults with large student loan debts even have $5k in a retirement account to pull out?

My wife went back to school at age 35 while working full time. She has over $58K in loans and over $100K in her 401k. It would be nice to be able to withdrawl $5K/year without paying a penalty to pay the loan off early that is accruing interest at 6%.

[CCbaxter]

Maybe if parents could access the money tax free to pay for college in the first place?

Rand Paul is like a packing peanut, all fluffed up but mostly just air.

[boxus]

Penny wise, pound foolish it seems to me.

Originally Posted by TwoByFour

The only reason someone would use this law is that the money going into a 401(k) is not taxed. The problem is not everyone has a 401(k). Rand's law should simply allow up to $5k in pre-tax dollars to be used to pay off a student loan.

I agree, allowing pre-tax dollars would be great actually for such a thing,