The Trump Administration is requesting that Congress put a limit on loan borrowing for University students, both graduate, and undergraduate. This is a proposal from the Higher Education Act which is a law designed to strengthen the educational resources for colleges and universities across the United States.
According to the Student Loan Hero Website, American graduates have acquired more than 1.56 Trillion Dollars in loan debt. This interesting and alarming statistic is projected to get worse over time as the rate of college tuition grows. Congress has not yet said what their limit will be, but it could vary by program rather than an institution.
“Members of Congress who are committed to ensuring Americans thrive in today’s strong, modern, and growing economy should support and pass these reforms,” says press secretary Sarah Huckabee Sanders.
According to a CNN exclusive, White House officials have also discussed expanding federal aid for workforce training programs for prisoners eligible for release and increasing transparency around student outcomes.
The White House is urging Congress to work with loan repayment programs. This plan will make it easier for Americans who face massive student debt to make monthly payments at 12.5 percent of the borrower’s income. Remarkably, student loan debt exceeds what Americans owe in credit card debt, auto loans, or home equity loans.
In an effort to help college students and graduates with their financial struggles, Trump has issued a 10 part plan to help reform the Higher Education Act. If Congress follows with this plan, this would be the largest reform since 2008. If you’re a student loan borrower, it’s important to learn about how your student loan debt will affect you post-graduation and how to stay on top of your loan requests while in school.