Yesterday, we reported on President Donald Trump’s new law designed to help students with a disability. Making student loan forgiveness tax-free for the permanently disabled is an excellent start. However, what other ideas does he have for the future? How will these plans affect you?
Just a quick note: these are only proposals. No laws have been signed or changed. Remaining vigilant about fluid shifts within the industry is essential. Let’s look at three areas where Trump hopes to get involved with the student loan crisis.
1) Will It Be the End of Student Loan Forgiveness?
From the beginning, President Trump planned to do away with forgiving student loans. Of course, the exception is, if you cannot pay for your loan due to a disability. Otherwise, should the individual be responsible for their taxes? Is it fair that a student racks up $100,000 in debt, but it comes at a cost to taxpayers?
Betsy DeVos, the U.S. Secretary of Education, doesn’t feel taxpayers should foot the bill. With the president, they hope to cancel student loan forgiveness soon. They attempted to do just that with their first budget proposal. They decided to keep it another year in a compromise with Democrats to get the 2018 budget passed.
As of right now, the law is intact. For how long, no one knows. Trump and DeVos are already looking to cut it from the 2019 budget. So, if you’re hoping to get your student loans forgiven, call Financial Helpers today. We can help you go over your options while this option is still available to you. Call at the number below:
2) A Restructure of Repayment Plans in the Works
Currently, there are two ways to repay your loans. PAYE (Pay As You Earn) and REPAYE (Revised Pay As You Earn). These two plans are complicated and confusing. Trump hopes to fix that by combining the programs into a more straightforward single plan. As the two programs are currently separate, they differ on the amount of interest paid, and how long it will take to pay back the loan.
http://financialhelpers.com/president-trump-has-changed-student-loan-forgiveness-laws/
Students need a plan of action to repay their student loan successfully. They should prepare for every outcome before they decide to borrow the money, rather than being blindsided after they graduate. Knowing how the repayment program works, the future potential changes will give the student an upper hand.
3) Trump Wants to Give Students Better Borrowing Choices
If you think removing student loan forgiveness options is a bad idea, Trump may have a better opportunity instead. The president wants to give a boost to the private sector. It boosts competition and can lower prices. He hopes to inspire the same for student loans. Moreover, it might just work.
Right now, the federal government has control of the loans. Trump believes that they try to profit too much off of a student’s misery. This opens the doors for private lenders to get involved, and it’s going to give students better (and cheaper) options.
In all, the student loan debt problem is going to remain unsolved for some time to come. As long as the government continues to subsidy colleges and universities, the prices will keep climbing. Each administration seems to have their ideas about how to fix the problem.
