Student Loan Relief Proposals Under a Trump Presidency

With a new President being sworn-in in January, the question for many student loan debtors is, "What will happen with my student loan debt?"  The best answer I can give thus far is, not much.  President Obama signed the College Cost Reduction and Access Act into law in September 2007.  This allowed student loan debtors to enter an income-based repayment program, with the hopes that the payments would be manageable.  Some debtors could receive loan forgiveness by working in public service for ten years, or by making 20-25 years of payments (payments 10% of debtors' income) at which time the rest of the debt would be forgiven.  President-Elect Trump's proposal bears some striking similarities to this already passed law.  His proposal would maintain income-based repayment but instead of payments being based on 10% of debtor's income it would rise to 12.5%.  At the same time, the number of years of repayment would be reduced to 15.  Because the repayment programs already exists under the Department of Education, the new president could sign an executive order to make these changes rather than make a new proposal to Congress.

All of this is hypothetical.  This information is based on campaign promises and any action the President-Elect takes will happen after he is sworn in.  His proposal isn't a huge change for people with existing debt.  Some will find the increase to 12.5% unbearable, while others may be very happy to see loan forgiveness in 15 years.  For now we will have to wait and see.