Posted on 10/13/2016 6:58:23 PM PDT by 2ndDivisionVet
PHILADELPHIA (CNN) — Donald Trump on Thursday offered up his most detailed prescriptions yet to address the student debt crisis, proposing an income-based cap on student loan payments and an ambitious student loan forgiveness program.
Trump, in a meandering speech to a group of rowdy high school and college students, called for a single student loan repayment plan capped at 12.5% of a borrowers’ income and suggested borrowers would see their student debt forgiven after 15 years of making full payments.
“We’re going to work it out. It’ll be a negotiation,” Trump said, prompting one student to shout out “Art of the Deal!”
“We’re going to work it out big league,” Trump added....
(Excerpt) Read more at philadelphia.cbslocal.com ...
I know, I know...gotta suck it up to keep the Queen out of the WH.
Why should I have to pay for their college? No one paid for mine.
Tell me it is not true.
You’re losing me, Donald.
seems like a great idea to me.
Hopefully the lesson out of this exercise is that non-vocational degrees not paired with at least a double major in a 'real career degree' ... loans should not be made against those degrees, or else students should have to sign 'I will not hold anyone else responsible for my 120K debt on my women's 18th century muslim transgender poetry degree.'
Perfect is the enemy of the good. I don't like it either ... but I can deal with it. Trump won't use it as a gimme-free-stuff thing, and he'll stick it to the lenders hard while not bankrupting them.
I can imagine that their focus groups developed the potential of this as a policy position in terms of millennial voters, but they may have failed to consider its implication for fiscal conservatives. A federally guaranteed student loan, once disbursed, can be viewed as a zero sum game. If the borrower doesn’t pay it back, the taxpayer does. Many student loans are paid back within 15 years, but a lot aren’t. If Junior went to Brown and paid full boat, took 5 years to graduate and then maybe lingered to earn additional degrees, you can be looking at $200K+ easily. If he does not apply himself, or chooses a low income trajectory in public service, there can be a lot of principal balance left a the end of 15 years for the federal taxpayer to shoulder. I realize that Trump may be concerned about Hillary’s pandering to millennials, but the answer is not to try and out pander her. This is a good example of where Trump’s lack of deep conservative principles are showing, and I think it nets him nothing in terms of votes.
I sacrificed and saved over all the years so my kids can go to college without loans.
Now I’m going to get punished for it.
” called for a single student loan repayment plan capped at 12.5% of a borrowers’ income and suggested borrowers would see their student debt forgiven after 15 years of making full payments.”
Will I be able to get a mortgage with those terms?
Trump’s a negotiator.
Hopefully, this is just a tactic and he can start with this as a basis for talking about the student loan crisis. We all know what is causing the crisis (cough government), so getting the government out of student loans may be his bottom line. Hopefully.
Donald opens the bidding war.
Should basket weaving majors be subsidized?
Worth every penny to keep the 2nd amendment
Mine either, but we probably got by a hell of a lot cheaper, relative to income and expenses. Something (namely friggin’ unions, PC nonsense, lack of fiscal discipline to name a few) have driven the cost of college up disproportionately:
Tuition costs were 6.2% of men’s median income and 17.8% of women’s median income in 1971. But by 2012, tuition was 26% of men’s median income and 41% of women’s median income per year.
(Data source: http://college-education.procon.org/view.resource.php?resourceID=005532_
Of course in 1971 a college taught actual useful things and demanded high standards, and graduates got actual jobs. Now - not so much on either count.
The solution is to get at the root cause of the disproportionate increase relative to incomes, but if that involves paying for 15 years and then maybe some adjustment or retro credit to those with jobs based on income or something, I could support that as a short-term part of a solution.
Best student loan program (actually not a loan) was the G.I. Bill.
We no longer have a draft. We no longer require service to one’s country.
And we wonder why there are so many who struggle to pay for college while the level of immaturity is off the charts.
He needs to call out universities on why the costs have sky rocketed.
What the kids don’t realize is that when the loans are forgiven, it’s counted as income in that year. Taxes go up. Any zer0care subsidies must be repaid in that year as a tax obligation.
I know someone in this situation. They had to negotiate w/the IRS to pay their increased taxes off over time.
Nothing is free forever.
That is what I was thinking. Plus, he said they have to make (all) payments for 15 years. Perhaps missing one payment or being late on two would disqualify someone from the forgiveness program, actually leaving few eligible.
Exactly. That probably is part of the plan.
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