Trumps Student Debt Plan, That Looks Kind of Familiar

Donald Trump has been talking up a details-light version of his student debt plan and, you know, it looks awfully familiar. It’s no secret that student debt is reaching economically devastating levels, with the effects of Millennials putting off marriage, children, starting businesses, buying cars, or buying homes in order to service their debt. The subject of student debt has been in the news, and it’s out on the campaign trail as well, with Bernie Sanders and Elizabeth Warren leading the charge. Hillary Clinton has already released a detailed student debt plan for students entering college, and for those already laboring under their debt.

More of the Same Student Debt Plan?

Trump is offering students with debt a one-size fits all plan that would take 12.5 percent of their income over 15 years, with forgiveness on any balance coming after 15 years. When pressed for details on where they money for this plan would come from an aide would only say that, “-the plan will be paid for by lowering federal spending on ever-rising college tuition and fewer defaults on student loans.”

Um. What?

Nor have any further details of this policy been released.

This sounds a lot like the plans that are already available, actually. A visit to the StudentAid.ed.gov offers students eight different repayment plans in terms from 10 to 30 years, plus consolidation loans. Some plans are fixed, some are based on income, and some have payments that go up on a fixed schedule. You can choose the best plan for you, and even change plans. Until I hear a lot more details about Trump’s plan, I can’t really say how it would work one way or the other.

In the here and now, you need to manage your loans and get a grip on them before they take over your life. The candidates really got student debt this year, and the effect it’s having on the American economy. It’s about time, too, as the first Millennials are now 35 years old! Better late than never, Washington, but really! It remains to be seen what, if anything, can be done to help students who had to take out private loans in order to cover gaps between what their education cost and what federal loans, student aid, grants, and scholarships would cover. Many private lenders have turned over collections to companies who – to put it delicately – materially misrepresent* the facts when engaging in collecting and servicing those loans.

If your education is costing you more than you ever imagined, including sleepless nights and a steady diet of ramen noodles and the cheap hot dogs, call me. We have a free initial consultation at either the Palm Beach or Fort Lauderdale office, and we can start getting you back on track. You’ll sleep better, eat better, and be able to think about your future more clearly. Give is a call, and let’s see what we can do to get a grip.