How Trump’s Presidency Might Change Student Loans
During his election, Donald Trump didn’t spend much time talking about the student loans. But he highlighted the tough student debt issue and suggested several solutions to cope with the problem. Whether this will remain in the plans of our President, or soon we will resolve the major issue in the sphere of education, is not known yet. But right now, we can assume how the Trump’s presidency and policy can affect the current student loans.
Learn Trump’s Student Loan Plans
Now, you can discover what ideas our President has put forward to deal with the student debt problem.
Plan #1. Cap on Maximum Repayment Amount
The first resolution for a $1.3 billion student debt in the U.S. is to cap loan repayment at 12.5%. On October 13, in his rally, Donald Trump pointed out the possibility of capping the maximum repayment amount of the borrower (obviously, a student). He also stated that this 12.5% will be covered by the state itself. This will save much money for the borrowers. The only flaw, in my opinion, is that this rule concerns only federal loans so far.
Plan #2. Student Loan Forgiveness After 15 Years
During his speech in Columbus, Ohio, Trump started talking about a new loan forgiveness program for borrowers. Previously, to pay loans, former students could repay the loan within 20 or 25 years, and also used the teacher loan forgiveness plan and the public service loan forgiveness plan. Now, the President proposed to reduce the maturity of the loan for 5 years. According to his words, this should save the government money, reduce the number of defaulted loans, and help individuals repay their private loan debts.
Plan #3. Cut College Costs
Another Donald Trump’s plan that might affect your current or future student loan is to cut college costs. A few days earlier, he said that in the future, there will be some reforms in the field of education relating to the reduction of college costs. Since colleges in our country are not going to lower costs, Trump will give federal tax breaks, which probably could lower the tuition fees in institutions.
Plan #4. Aid for Non-Traditional Schools
As you could already read on our President’s website, Trump promises to help everyone who wants to receive a decent education or training in certain skills. This can be the usual 2 or 4 years in college, technical or vocational education, specific training programs, etc.
It turns out that Donald Trump has set himself the task of giving people the opportunities to receive and pay for their studies without any obstacles. It is known that only those students receive federal aid who study at educational establishments accredited through the Department of Education. Now, the President intends to provide all non-traditional schools and programs with federal aid in order not to restrict anyone.