As we enter 2019, many millions of Americans are worried about the student loan crisis. In total, 44 million Americans owe over $1.53 trillion worth of student loans. Is that number continues to grow, college education only gets more expensive. And whether the government will help people get through these trying times depends on the administration.
Where the Obama administration actually created a student loan forgiveness program, the Trump administration has different plans. In fact, President Trump wanted to do away with forgiveness altogether. He and Education Secretary Betsy DeVos believe it’s not fair for taxpayers to be on the hook for student loans.
Currently, the government is shut down over budget concerns. Last year, Trump wanted to do away with the forgiveness programs. He came extremely close to doing it, but eventually compromised with the Democrats kept it in the budget. Now with the budget on the line, it’s unknown what will happen next.
Here’s a list of four major changes that might happen to student loans in 2019:
1) Student Loan Forgiveness Gets Wiped Out
The current law states that public service workers to receive full forgiveness for their student loans after 10 years of qualifying payments. As stated previously, Trump wanted to do away with this program last year. In fact, it was on the chopping block until a budget compromise happened. This year? It’s unknown what will happen forgiveness program.
But if President Trump gets his way, it might be a goner. He and Betsy DeVos want to implement a different program. Even if it doesn’t happen this year, the entire forgiveness program is threatened. The best thing you can do is constant Financial Helpers today to see if you qualify. You can reach us at:
2) Repayment Plans for Student Loans
There are several student loan repayment programs out there today. This gives students multiple options and helping them pay back their student loans. If you’re on an income-driven repayment program, they can help you save some money. But the current repayment program on the books today is also in the crosshairs of President Trump.
As a candidate in 2016, Donald Trump said he wanted to combine the income-driven repayment plans. These plans are the PAYE and REPAYE. By combining them, in Trump’s mind, it makes the process much easier for students. The difference is whether you have private or federal student loans. You must know the difference between the two.
3) Interest Rates are Rising
In 2018, the Fed frustrated a lot of people by interesting the interest rate 4 different times. As it currently appears, the Fed is still increasing rates. It’s quite possible that they’ll do it again in 2019. Are you ready for rising interest rates? They’re a burden to most people, as it only makes it harder to pay off student loans.
4) Student Loan Rates Will Change
Every July 1st, the student loan interest rates reset. The new interest rate is set and runs throughout the year until June 30. If you have a variable interest rate, that rate can change monthly. Therefore, you need to pay attention to this rate. It can impact what you’re going to pay dramatically.