Am I bitter?
The things are offered as easy money to student’s and parent’s who want the best…..
The money comes fast and easy….
Everyone is happy…
Graduation and hurrays!
But standing in the shadows is a HUGE reality check….
Repayment of the loans….
Student loan debt is the second biggest consumer loan burden…..
Only home mortgages surpasses it….
A LOT of people are NEVER gonna repay their debt….
Young people now start off with payments that are hundreds of dollars a month as they enter the job market….
Barack Obama paid off his only after he became President and was making $400,000 a year….
There IS something drastically wrong with this blood sucking program…..
President Trump released a 10-point plan to reform the Higher Education Act, which is the primary legislation that governs higher education. If Congress reforms the Higher Education Act, it would be the first major reform since 2008. The Trump Administration believes that previous regulations increased the cost of college and student loan debt. Trump’s goals are to “increase access to affordable, flexible, and innovative postsecondary education and skills attainment to meet the interests and lifelong learning needs of every American.”
Among others, his goals include:
- provide students, families, and working Americans better and clearer information regarding higher education;
- encourage innovation;
- reduce the cost of higher education;
- ensure that students of faith are able to attend schools that reflect their values; and
- require educational institutions live up to protect free speech.
Student Loan Debt Statistics
According to the latest student loan debt statistics, there is $1.5 trillion of student loan debt and more than 44 million borrowers. Student loan debt is now the second higher consumer debt type, second only to mortgages and higher than both auto debt and credit card debt. By 2023, 40% of student loan borrowers may default on their student loans.
10-Point Plan: Student Loans
Trump’s 10-point plan includes various proposals related to higher education. Here are two related to student loans, including the potential rationale and potential impact:
1. Encourage responsible student loan borrowing
The administration notes that there few limits on educational institutions to limit the cost of tuition. As a result, parents and students bear the burden of student loans. The administration calls for limits on federal student loan borrowing and more guidance for borrowers on how likely they are to repay student loans.
Although the White House did not specify dollar amounts, the White House called on Congress to:
- Enact Parent and Grad PLUS loan limits;
- Enable financial aid administrators to help students limit and manage their student loan borrowing; and
- Require educational institutions to provide regular financial aid counseling.
Potential Rationale: Curb the rise of college tuition. Limit the rise in student loan debt……
There IS a program for those who have loans and are working in Public Service….
If you put in 10 years ?
Your loan balance is supposed to be forgiven….
I say supposed to because the program actually has so many mountains to climb that is virtually impossible for anyone to have their loan forgiven….
Student loan forgiveness, most notably Public Service Loan Forgiveness, is not as simple as saying: “I work in public service. Now forgive my loans.”….