Regardless of what you may have heard or think about President Trump, he loves his country, and he loves young people. He is a self-made billionaire who once lost almost a billion dollars but gained it all back through his tenacity, strength, and negotiating abilities. He never gives up, and that is the type of attitude we should all strive to have. When it comes to his Presidency, his attitude is no different – and fortunately for students, he’s bringing this school of thought to his student debt plan, too.
President Trump is now in the process of negotiating for you, the college student who took out student loans that you’re having trouble paying back. Our sources tell us that Trump is currently looking at the massive student debt that exists from past investments and trying to figure out a way to wipe out most of it or significantly lower payments of people who borrowed federal monies in the past. So, what does President Trump’s student debt plan look like?
If he submits it as a bill, he will have to get this bill through Congress. This is the issue as many on the other side of the political aisle are fighting the positive changes he is making in the finance world. But he does have the option of signing an Executive Order that has to do with rearrangement of monies that were allocated for this purpose or through some action regarding the Federal Reserve.
It is unclear yet exactly how he will carry this out but we do know that he is thinking of a way to significantly lower the debt that students have to pay which would include a legitimate and legal student loan forgiveness plan.
There are many plans out there that promise student loan forgiveness but they do not have the authority to do so. Those who are promising this without the proper backing of the correct authorities are promising something they cannot deliver.
But the President does have that authority now. If he signs Executive Order clearing or lowering student debt, it will stick and this will be the new law in the year in which he signs this. Cross your fingers on this effort by our President. In the meantime, understand that any loan that you take out now may or may not be forgiven depending on whether he gets this law in force.
The President is well aware of how high the student loan debt crisis is, so you should think carefully before borrowing to go to college.
Exhaust all other avenues such as Pell grants, scholarships, or work-study programs before you take out more loans to go to college. If loans are the only way, just carefully monitor what you borrow and make sure you were going to make enough money in your future career to justify the debt.
President Trump’s student debt plan may lower the number of student PLUS loans available because he hopes to help parents, too. But it will never affect any private student loans that someone wanted to take out on their own.
Trump’s new law on student loans may lower student debt or at least limit the number of debts students can take on, which would force colleges and universities to lower or put a “cap” on how much they can charge.
He stated recently, “College tuition is too high,” and he hopes this legislation would cause colleges to make college more accessible for those who decide to go. (Forbes Magazine)