Trump Administration Proposes New Limits on Student Loans
Do you have a ridiculous amount of student loan debt? If you are one of the few Americans that doesn't have student loan debt consider yourself lucky. According to Make Lemonade, there are over 44 million borrowers. All together the 44 million owe $1.5 trillion in student loan debt in the U.S. The average student loan debt for someone who graduated with the Class of 2016 is $37,172. As the numbers continue to climb the Trump administration is proposing new limits on student borrowing. The goal is to "curb" the cost of college. According to The New York Times Trump's daughter, Ivanka Trump said the plan will "modernize our higher education system to make it more affordable, flexible and outcomes-oriented."
White House officials announced the plan Monday. The Trump administration believes that Congress should put a cap on federal student loans to make sure that borrowers are not taking on a huge load of debt that they won't be able to manage. There are no specific limits listed however the administration wants it to be assessed by the academic program. The White House hopes to take all five loan repayment options and combine them into one plan that would cap the borrowers monthly payments at 12.5% of a lendee's income. Do you have a high amount of student loan debt? Could this plan help you? Tell us your thoughts in the comments below!