Trump’s Plan To Relieve Student Loan Sufferings.
January 20 2017, 5 pm GMT, white house will welcome its new President as Donald Trump takes the Oath of Office and be sworn in as America’s 45th president. Many previous presidents have been able to bring in valuable changes in student loan policies in USA, our new President has also planned something for debt stricken citizens of America. He has been criticizing federal government for profiting on federal student loans. He said it is probably one of the only things the government shouldn’t make money off and it’s terrible that one of the only profit centers government has is student loans,” said Trump. Federal Student Loan programs turned a profit of $41.3 billion in 2013 while many borrowers were struggling to make their financial ends meet. Although his take on student loan is not very clear but below are few things we can expect under his presidency:
1: Under Trump's proposed student loan program, he would cap repayment at 12.5% of a borrower's income. He did not indicate if this repayment cap would apply to all federal loan borrowers or only for those who apply for income-driven repayment, as is the case now. In the most widely available income-driven repayment plan currently available to student loan borrowers, known as Revised Pay As You Earn, or REPAYE, monthly payments are capped at 10% of a borrower's discretionary income.
Trump's proposal would also forgive student loan debt after 15 years of full payments — five years earlier than the current REPAYE option.
2: He focused on solving the student loan problem by creating jobs in the private sector. He said instead of raising minimum wage he wants to create jobs so people can get much more than that and pay off their student loan easily.
3: Trump also wants to let colleges have a say in lending decisions and make them share the risk of student borrowing with lenders. It would be up to the colleges and banks to decide together which students could borrow student loans, Clovis said. The decision would be based on factors including the student's major, choice of college and the potential to find a job after graduating.
4. One of his proposals require colleges to spend their endowments to keep tuition low and cut student debt or risk losing federal tax breaks. Congressional Republicans have asked 56 private universities, each with endowments exceeding $1 billion, for information about the use of that money. Wealthy universities have come under fire for not using more of their largesse to cover the cost of college for low-income students.