NEW IDEAS FOR A GROWING PROBLEM

by Contributor

(Feb. 7, 2017) — Although you may not agree with Donald Trump’s views or even believe that he should be the President, if you’re a student, his presidency could actually hold some good news for you. If you’re currently studying for your taxation masters degree online, you’ll be glad to hear that the new President believes that students should not be asked to pay any more on their debt than they can afford, and student debt shouldn’t be around their neck for the rest of their lives.

Capping Student Loans

Speaking at an October conference held in Columbus, Ohio, Trump said that his proposed solution to student debt is to cap all annual student loan repayments at just 12.5% of income. He also suggested that after fifteen years have passed since your graduation, any student loan left outstanding would be written off, allowing you to live free from student debt.

Possible Privatization

Today, the federal government plays a large part in the distribution of student loans. However, under Trump, many believe that loan servicers and lenders in the private sector are going to have a greater role to play. Just a short time ago, the Consumer Financial Protection Bureau joined two state attorneys in suing Navient, the largest servicer of student loans in the U.S. Under the Obama administration, students were given more options to pay off their debt with the option for debt forgiveness after 20-25 years. However, Navient is being accused of keeping many lenders in the dark about such repayment and forgiveness opportunities.

Effect of Student Debt

College costs are constantly rising, but government grants and financial aid are still no more readily available, despite the financial pressures of attending college. Even with an online program such as this masters in taxation online, it can be difficult for students who’ve not yet been able to begin pursuing their career to afford tuition fees. This means that more students need to borrow larger amounts of money in order to study, often graduating hundreds of thousands of dollars in debt and having to postpone further life goals such as buying a house or getting married as a result. Trump’s suggestions for student loans would make repayments easier to manage and allow graduates to get on with their lives.

Pay with Your Time

If you’re worried about being unable to pay off your student debt in the future, you may be able to easily work off your debt through community service in the future. Trump’s connections with the private sector will allow him to seek out employers who will take on volunteers for a short amount of time per month, which will result in student debt reduction. Such programs are already available on a limited basis. Along with this, many employers are willing to help graduates pay off their student loans. Promoting this is a great way for the new President to tackle this important issue facing the younger generation in particular.

Do you think that the new President will be able to improve the financial situation for students and graduates? We’d love to hear from you in the comments.

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  1. The federal government should not be involved in student loans in any way, and more than it should be giving loans for automobile purchases. The Department of Education should be abolished and all federal student loans should be sold off to the highest bidder. If you cannot afford to go to college, don’t go to college. If you cannot get a bank or a relative to lend you the money, get a job and save up for college. That is why we “normal” people did years ago. Yes, college is far more expensive now. But the costs will be reduced when the federal loans and grants are abolished. Without the prospect of all that easy money coming in, the schools will stop wasting money on cafeteria waterfalls and climbing walls.

  2. @OPOVV

    I also worked my way through school in the 1980’s and agree that one should do that if possible. However, it is simply not possible today.

    Up until the late 1980’s, it was possible to work part time at a minimum wage job and pay for tuition and other expenses. Since the late 1980’s the cost of a college education has risen faster than the minimum wage.

    I would encourage you to read the following article: https://www.theatlantic.com/education/archive/2014/04/the-myth-of-working-your-way-through-college/359735/

    In 1993, a student could work 16 hours per week at a minimum wage job to pay for school expenses. Today that same student would have to work 48 hours per week at a minimum wage job to cover his expenses. And from personal experience, I can tell you that no employer would allow a minimum wage worker to exceed 40 hours in a week. They don’t want to pay the overtime. So a college student today would have to hold down two part time jobs to pay his school expenses.

  3. Here’s a novel concept: work ones’ way through school. If I could do it, anyone can. It may take a little bit longer, but being debt free is hard to argue against.
    I installed garage doors; sold burglar alarms; sold insurance; painted houses; worked in a specialty cheese store; mowed lawns; and so on and so on, including a stint in the military.
    I’m so sorry, but I have absolutely no empathy for today’s students saddled with over-inflated student debt.
    But if it’ll make some of you feel better, I’ll see if I’ll be able to conjure up some Schumer-like crocodile tears.
    Hold on. Wait one.
    No, sorry, just couldn’t do it.