Some school students could also be protesting Donald Trump’s election, and a few could also be cheering, however whether or not they’re a fan of the 45th president of the United States, there’s an excellent probability they’re questioning what he plans to do about student loans. As a candidate, Trump’s stance on school affordability and debt was a bit imprecise, particularly in comparison with Hillary Clinton’s name for tuition-free greater training. But he has supplied a number of hints about how he would possibly deal with the $1.3 trillion in student loan debt Americans at the moment have hanging over their heads.
The largest clue to how Trump would possibly reform the student loan system got here throughout a speech he gave in Columbus, Ohio, on October 13. At that occasion, he mentioned one thing should be performed to maintain staggering quantities of student loan debt from derailing folks’s lives.
“Students should not be asked to pay more on their loans than they can afford and the debt should not be an albatross around their necks for the rest of their lives,” he mentioned. “And that’s what it is.”
Trump’s answer to the “albatross” of school debt? A rejiggered income-based reimbursement plan, the place debtors would pay barely extra per thirty days however get pleasure from a shorter time to loan forgiveness.
“Under Trump’s proposed plan, the government would cap payments at 12.5% of the borrower’s income,” Andy Josuweit, CEO of Student Loan Hero, advised The Cheat Sheet. “If the borrower keeps up with payments for 15 years, the government would forgive the remaining loan balance.” Currently, folks on the income-based reimbursement plan pay no extra 10% of their revenue each month. Any remaining steadiness is forgiven after 20 years of on-time funds.