College Tuition Under Fire - Trump Admin Proposes Student Loan Cap

[Smaulgld]

https://www.youtube.com/watch?v=mIjuQhxqEug

[oyarde]

End it . The govt has no moral right to take taxes from the people and loan it to others . Godless and invites wrath .

[Smaulgld]

End it . The govt has no moral right to take taxes from the people and loan it to others . Godless and invites wrath .
the proposal (which may not get implemented) does not go far enough- it only puts a cap on the loan amounts

[timosman]

the proposal (which may not get implemented) does not go far enough- it only puts a cap on the loan amounts

Should be a pound of gold.

[Zippyjuan]

https://www.ajc.com/news/local-education/white-house-proposes-changes-college-student-loan-programs/rNB1OH3RkOdWn2fzgb1IaN/


The White House wants Congress to extend loan forgiveness to all undergraduate students after 180 months of repayment through an income-driven repayment plan. It’s proposing a 12.5 percent monthly cap of a borrower’s discretionary income. It also wants limits for Parent and Grad PLUS loan programs.

Quick numbers. College grad $50k salary. "Discretionary income" so minus taxes on that. Say $40k left. 12.5% going to pay the loan: $5k a year. 180 months is 15 years. That would come to $75k in loan payments- including interest- no matter how much you borrowed. Fine if you go to an expensive school. Average student debt is $37,000. https://www.cnbc.com/2018/02/15/heres-how-much-the-average-student-loan-borrower-owes-when-they-graduate.html


Trump administration officials also discussed a proposal that has been popular among state leaders, finding ways to get students to pursue careers in high-demand industries. It wants Congress to expand Pell Grant eligibility to include programs that provide students with a credential, certification, or license in a high-demand field. Georgia’s Technical College System offers free tuition in 17 programs in what it consider high-demand careers, such as commercial truck driving, logistics, movie production set design and welding.


“We need to modernize our higher education system to make it affordable, flexible, and outcome-oriented so all Americans, young and old, can learn the skills they need to secure and retain good-paying jobs,” Ivanka Trump, the president’s daughter and adviser, said in a conference call with reporters.

[Stratovarious]

Higher Learning, Lesson one ;

Don't borrow money you don't have a plan to pay back, just to impress
you girl friend and parents.

[Zippyjuan]

Currently, the amount an undergraduate student can borrow from the federal government is capped at $57,500 over the student's lifetime. But parents of undergraduates and graduate students face no such limits, and can borrow as much as they need -- with the price tag set by schools.

The administration official did not say what the administration's proposed limit would be, but specifically mentioned the PLUS loan program. Parents and students must show credit-worthiness to borrow from that program and the interest rate -- currently set at 7.6% -- is typically higher than the loans from other federal programs.

https://www.cnn.com/2019/03/18/politics/trump-student-loan-limit-cap/index.html


Over the past two years, the administration has been criticized by Democrats for siding with for-profit colleges over students. Under DeVos, the Department of Education attempted to roll back an Obama-era rule designed to help students cheated by for-profit colleges get relief on their education debt.

[gaazn]

Give everyone $1000 per month and everyone will be happy.