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Trump Budget Will Have Major Impact on Student Loans

Trump Budget Will Have Major Impact on Student Loans

“could serve to simplify the process and reduce the number of years students have to pay the government back”

https://petapixel.com/2017/01/21/president-trumps-official-portrait/

This is a good thing. We need to stop throwing buckets of cash at higher education.

The Washington Examiner reports:

Trump’s budget majorly impact student loans, but is it a bad thing?

Under the new budget that President Trump proposed on Monday, several student loan programs are slated to take major hits.

The Public Service Loan Forgiveness program, which forgives federal student loans for borrowers employed full-time in an eligible federal, state, or local public service job, is slated for elimination. Since its inception in 2007, almost 750,000 borrowers have taken advantage of the program, which also requires 10 years of employment in a public service role.

Though the cuts to Public Service Loan Forgiveness appear negative, the other impacts to the student loan process as a whole could serve to simplify the process and reduce the number of years students have to pay the government back.

Today, borrowers are faced with a choice between a Standard Student Loan Repayment plan (paying off a fixed amount each month to settle their debt within 10 years), an Extended Student Loan Repayment plan (paying off debt over a longer period of time in smaller amounts, therefore accruing more interest), an Income-Driven plan (paying off debt based on income), a Pay as You Earn plan, or an Income Contingent Repayment plan.

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Comments

How about the colleges run their own scholarship and loans programs, even if they have to do it in partnership with private lenders?

The role of the Federal government is the safety and security of the Federal Republic. Student loans do not rise anywhere near that obligation. They have no business being of any Federal concern whatsoever. Dump the program.

    CaptTee in reply to ss396. | February 19, 2018 at 11:51 pm

    Excellent Idea! Because that would mean that schools that had too many defaulting students, because of inferior education (or useless degrees), would go out of business!

Not blaming the current regime because I took out the money, but it would have been nice to know that before I started the program.

Getting canceled mid-program would make you worse off than if you never got in the program. Ah well, at least I was aggressive early on and paid a bunch of extra principal.

4th armored div | February 20, 2018 at 10:42 am

the trick played on students and parents was the ease of getting these userous ‘loans’ for useless degrees in a nonemployment economy.

Whatever the loan program, the university should be required to hold 3 to 5 percent of the notes. That alone would force accountability, as students would then be required to make progress and graduate lest they end up defaulting and costing the university money.

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