President Trump has released one of the most liberal student debt repayment plans in recent history.
“We would cap repayment for an affordable portion of the borrower’s income, 12.5 percent, we’d cap it. That gives you a lot to play with and a lot to do,” Trump said at a rally in Columbus, Ohio, on Thursday. “And if borrowers work hard and make their full payments for 15 years, we’ll let them get on with their lives. They just go ahead and they get on with their lives.”
The plan would consolidate current repayment plans including the popular Revised Pay as You Earn (REPAYE) repayment plan which "forgives remaining debt after 20 years of payment”. Republicans have been critical of Obama’s student debt plan, so it remains to be seen what the reception will be for a more liberal policy.
In addition, Trump is looking to require “colleges to spend their endowments to keep tuition low and cut student debt or risk losing federal tax breaks. Congressional Republicans have asked 56 private universities, each with endowments exceeding $1 billion, for information about the use of that money. Wealthy universities have come under fire for not using more of their largess to cover the cost of college for low-income students.”
“The Republican nominee also promised to reduce federal regulation on colleges, which he said account for up to 15 percent of a school’s budget, so they can pass on the savings to students in the form of lower tuition. Trump said that colleges must be held accountable for reducing “administrative bloat” to keep the cost of attendance down.”