By: Reginald David
Throughout the entire election, college students were very involved. People have staged protests, rallied for the candidates and sure our voices were going to be heard among all of the political chaos throughout the media. College students are often typified today as being sensitive, especially after Trumps victory. Listening to Donald Trumps speeches and different interviews; I believe the greatest impact of his win is likely to be felt in financial markets and their effects on students and parent college savings. Studies show that over time, the Trump administration is likely to make changes to the way students pay for college. For instance, some Trump advisors have spoke upon ideas that could have a dramatic effect on student loans. Sam Clovis, the national co-chair and policy director of Trumps campaign spoke about getting the federal government out of the business of making student loans , and handing off that duty to banks, credit unions, and other leaders.
Trump wants to restore a system in which private banks issue federal student loans. The current plan, under Obamas Loan Forgiveness Plan, caps borrowers monthly payments on their student loans at 10% of their discretionary income for 20 years. Trump has proposed an increase in monthly payments from 10% to 12.5% of the borrower’s income however, and most notably, he lowers the payment program from 20 years to 15 years. Donald Trump hasn't indicated if this repayment cap would apply to all federal loan borrowers or only for those who apply for 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 borrowers discretionary income. Donald Trump’s proposal would also forgive student loan debt after 15 years of full payments; which will be five years earlier than the current REPAYE options. This new plan that Trump is imposing may be beneficial to some; but not beneficial for those that already have problems paying for their loans . By increasing the payments by 2.5%, that forces parents and students to give out more money in a shorter amount of time.
Monthly payments are capped at 10% of a borrowers discretionary income. Donald Trump’s proposal would also forgive student loan debt after 15 years of full payments; which will be five years earlier than the current REPAYE options. This new plan that Trump is imposing may be beneficial to some; but not beneficial for those that already have problems paying for their loans . By increasing the payments by 2.5%, that forces parents and students to give out more money in a shorter amount of time.
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