In the United States, one of the biggest questions right now is whether or not President Trump will really be able to help when it comes to lowering student debt. Students are also wondering how his plans regarding student loans will actually end up affecting them in the long run. Questions even surround Betsy DeVos, who is the Secretary of Education, as people wonder how she will decide to handle the nation’s student loan problem, especially since she has not spoken much about this specific issue of concern.
What Is Known as of 2017
Whether students attend school for their bachelor’s degree, such as an online degree in political science, or their graduate degree, such as an online masters degree in political science from a school like George Washington University, they are going to spend a lot of money. These students are also likely to take out at least one student loan to pay for their tuition, and the interest on student loans is very high, so this will quickly put them in debt.
As of May this year, DeVos and Trump were discussing an education budget that would try to get rid of the Public Service Loan Forgiveness program. Unfortunately, however, this would not be a step in the right direction for borrowers because it could end up costing them billions of dollars. Other news reports stated that DeVos and Trump would probably look for ways to get rid of more than $700 million in Perkins Loans. As a result, work-study programs would be dramatically reduced by this change.
What Else Has Trump Stated?
President Trump has also made other statements that could impact the student loan system and its borrowers. For example, he said the government should not be able to make any money on student loans, and the only way to fix this problem would be to lower interest rates on federal loans. He also made some suggestions regarding colleges and how much they charge students, and he hopes that tuition can be reduced by cutting administrative costs. He also said that universities might someday be required to use their endowment funds on students to cut debt and reduce their tuition fees.
What If Public Service Loan Forgiveness Goes Away?
If you are a borrower, you are probably wondering what you should do if DeVos and Trump do end up taking away the Public Service Loan Forgiveness (PSLF) program. First off, if you are eligible for Public Service Loan Forgiveness, you should consolidate any loans that you have, as needed. If you are already in the Direct Loan Program and you are also eligible for Public Service Loan Forgiveness, you should certify that you are employed. These two steps could help you boost your odds of getting into the PSLF system before changes are made to the laws.
No one really knows for sure what will happen with regards to student debt in America, but hopefully, some of Trump’s ideas will work in your favor if you are a borrower.