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Hi Guys,
The student loan crisis is bleeding the US dry. If you look at the statistics, the figures hit you in the face like a boxer. There are about 39 million borrowers in the US, each owing an average of $26,000. Total indebtedness levels are just under $1 trillion dollars ($966 billion). That is a titanic amount of money.
This is having a well known effect on the economy and the average American's ability to save and invest. It looks the president elect is paying attention and, according to the Washington Post, is calling for partial loan forgiveness.
From the Washington Post
Donald Trump is promising the most liberal student loan repayment plan since the inception of the federal financial aid program, in a clear effort to court the millions of Americans struggling with the high cost of college.
“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 question I have for the board is: how far will the president elect take this? Will he push wholesale debt forgiveness or will it be tied to some sort of repayment plan?
Washington Post Article:
Published October 13, 2016: https://www.washingtonpost.com/news/...dent-debt-plan
Student loan data:
The student loan crisis is bleeding the US dry. If you look at the statistics, the figures hit you in the face like a boxer. There are about 39 million borrowers in the US, each owing an average of $26,000. Total indebtedness levels are just under $1 trillion dollars ($966 billion). That is a titanic amount of money.
This is having a well known effect on the economy and the average American's ability to save and invest. It looks the president elect is paying attention and, according to the Washington Post, is calling for partial loan forgiveness.
From the Washington Post
Donald Trump is promising the most liberal student loan repayment plan since the inception of the federal financial aid program, in a clear effort to court the millions of Americans struggling with the high cost of college.
“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 question I have for the board is: how far will the president elect take this? Will he push wholesale debt forgiveness or will it be tied to some sort of repayment plan?
Washington Post Article:
Published October 13, 2016: https://www.washingtonpost.com/news/...dent-debt-plan
Student loan data:
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