Donald Trump has beaten the odds to become the 45th President of the United States in a keenly fought election with Hillary Clinton. Trump deviated from his usually brash and arrogant rhetoric during victory speech in the wee hours of Wednesday morning. He called for unity and he pledged to be a president for all Americans. It will be interesting to see what a Trump presidency would mean for Americans in the next four years. Riots broke out some college campuses to protest a Trump presidency; yet, a Trump presidency might turn out to be good news for college students – past and present. During the campaign, Donald Trump took up issues with rising college costs and how colleges ‘waste’ too much money on running endowments. This article provides insight into what a Trump presidency might mean for the cost of going to college.
Here’s Trump’s plan for dealing with rising college debt
It is no longer news that millions of American are suffering under a huge burden of student debt crisis. The United States has a $1.3 trillion student debt problem. The worst part is that the huge student loans often have a crippling effect on a person’s creditworthiness and personal loans have been a lifesaver for many people who can’t access other types of loans. Trump didn’t make a big issue out of rising college costs during his campaign but he did lay out a proposal that is more generous than the current plan for student loan debtors.
Trump proposed capping the payments for federal student loans at 12.5% of the income of the debtor for 15 years after which the government forgives the remainder of the loan. Current student loan payment plans are tough on borrowers and the most generous of the plan requires people with student loan debts to pay 10% of their income for 20 years. In fact, some of those payment plans require people with student debts to pay back 10% of their income for 25 years.
The president-elect believes that that going to college is turning out to be a poor investment because the wages structure and rising cost of living for people with a college degree doesn’t justify the costs. He observed that it behooves the government to find ways to ease student loan burdens. In his words, “Students should not be asked to pay more on their loans than they can afford and the debt should not be an albatross around their necks for the rest of their lives.”
Tackling the student debt crisis by slowing down the hike in tuition costs
Trump seems to believe that providing reprieve to struggling with student debt is only one part of the journey to solving the student debt crisis. During his campaign, he submitted that the government should make a concerted effort to slow down the alarming rise in tuitions costs. The United States will always have to contend with a student debt crisis unless the government moves to slow down rising tuition costs.
The president elect observed that colleges are not doing enough to make college more affordable even though they receive billions of dollars as endowments to that effect. On a final note he says, “as president I will immediately take steps to drive down college costs by reducing the unnecessary cost of compliance with federal regulations so that colleges can pass on the savings to students in the form of lower tuition.”