A Glance At Student Debt Reform

Since President Donald Trump has been elected into office, the nation’s student debt has gone up by $110 billion. That is a lot consider how many students have took out loans in the last year.

Trump plans on cutting $5.2 billion from the federal Pell Grants program, which has provided scholarship aid to millions of college students who really needed it.

The administration began dismantling the Obama-era initiative to crack down on lending abuses. They insist its reorganization of the Consumer Financial Protection Bureau’s student loan office was routine and will help everyone.

The student loan office was set to address concerns from borrowers who struggle to make their loan payments. But as of late we have not heard much from them.

An investigation was done in 2016 and it  showed many debtors who have a long list of lending and collection abuses with include threatening phone calls, retaliatory lawsuits, even aggressive collection efforts targeted at borrowers who were current on their loans.

When the presidential campaign was going on, Trump was one of the main people who endorsed student loan reform. He stated that debt should be tied to borrowers ability to pay back there loans and criticizing the government for earning so much money from interest payments on federal student loans.

Trump’s plans to make it easier for teachers, and other people who work in the public- sector, to enroll in programs to get their student debt forgiven after 10 years of on-time payments.

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