While running for president, Donald Trump proposed that he would make changes to policies to lower the burden of student loan debt.
Since being elected has Trump made good on his promises? Trump has passed just reformed tax package to introduce into congress. For some students this could be a good thing, others you could be losing money. Let’s take a look at the recent developments in this tax reform.
Close call: Tax reform
Many Americans take advantage of the deductions in interest rates. It can be hard juggling paying for your home as well as paying off debt. We think that the student loan interest deduction is outdated, this having to do with income-driven repayment.
Income-driven repayment winners and losers
The budget that Trump has proposed suggests some potential changes to the way we handle college debt. For example, if you happen to fall behind on your payments, you are automatically enrolled into a single income-driven repayment (IDR) plan
All borrowers could really benefit from a simpler system. Sometimes having to many systems in play can be confusing, with this option you don’t have to stress about which option is the best.
The downside with the new IDR approach would be graduate students. Their IDR student loan forgiveness, isn’t forgiven until 30 years have passed.
Could Public Service Loan Forgiveness disappear?
This is a big subject on everyone’s minds lately, will the PSLF plan go away. If you are currently enrolled in the program then not to worry, you are safe. If you are looking to sign up with the PSLF then this could be a big problem. This could disappear under the PROSPER Act. The PSLF program allows those who work in qualified public service field and non-profit organization jobs have their loans be forgiven after making 120 on-time monthly payments.
New borrowers could lose with Trump student loans
The PROSPER act looks like a win-win because it gives you less options and gets rid of origination fees for federal student loans.
What to do about your student loans?
No matter what happens in the future, you should think about paying off your student loan debt. If you want a lower interest rate and lower payments, then you should consider refinancing your student loans.