Hillary Clinton Student Loan Forgiveness Plan
- June 28, 2016
- Posted by: Jeff Gitlen
- Category: Student Loans
Updated: July 6th, 2016
Hillary Clinton Student Loan Forgiveness Plan for July 2016
Hillary Clinton student loan forgiveness plan was announced that will allow student loan borrowers to stop making payments for up to three months during their repayment periods. This plan would give borrowers time to refinance high interest student loans, as well as allow for them to come up with a better plan for repayment.
This is one of many expected announcements related to higher education and is also surely an attempt to appeal to young voters for the fast-approaching presidential election.
On Tuesday, July 5th, Clinton also announced a plan to allow teachers and other workers in public service fields to refinance student loans. However, this initiative might differ from traditional refinancing where lenders offer new rates, terms, and loans to applicants. This might involve a federally subsidized refinancing initiative.
The presidential hopeful remarked, "I want everyone to be able to refinance your student loans so you never have to pay more than you can afford and for people who go into public service, and I include teaching because it is the first and primary public service. Any remaining debt after you refinance will be forgiven after 10 years."
The repercussions of the federal refinancing part of the plan would cost the government over $1 billion due to the money lost in interest due to lower rates.
Other possible plans include capping payments at a percentage of income - similar to current income-driven repayment plans. These plans make repayment more manageable as monthly payments are generally lower and more affordable. They don't, however, do anything to reduce the total cost of the loan - often increasing it
Updated: June 28th, 2016
Hilary Clinton Student Loan Forgiveness Plan for June 2016
In recent history (very recent), Rush Limbaugh has established a bold prediction regarding the Hillary Clinton Presidential campaign and student loan forgiveness. In short, it involves Hillary Clinton making a proposition to forgive all outstanding student loan debt.
Rush Limbaugh was recorded saying, "Don't be surprised" in regards to such a proposal. Additionally, he pointed out that Hillary has been recorded commenting on the "unconscionable and outrageous" debt being taken on by college students.
Apparently it is not too unreasonable to think that Hillary would make this move against federal student loans.
The gravity of this prediction and pending proposal is enormous. It is generally known that President Obama and the Democratic Party have been making moves against student loan debt with proposals for loosening student loan forgiveness regulations. While these moves have been news worthy, a proposal on just forgiving these loans outright blows recent proposals out of the water. The elimination of over $1.3 trillion dollars in debt is not simple, so there is much to be said about a plan that would remove that outstanding tally.
This is in direct contrast to Presidential candidate Donald Trump's recent propositions on student loan debt. He has recently hinted toward privatizing the entire student loan system. If this were reality, the Department of Education's influence would be greatly reduced, and student loans would be market driven instead of set by federal standards.
When comparing these plans, they seem to be perfect candidates for polar opposites. One hints toward a federal action that may take on over a trillion dollars in debt while the other seeks to transition control of this debt over to the private sector. At any rate, there seems to be a perpetual division between political ideologies as party lines become more established on controversial issues.
There is much to be heard on this issue. At the end of the day, this is just a prediction by Rush Limbaugh, but it is still insight on a volatile issue that seems to grow more important every year. It adds tension to the already taut atmosphere regarding the enlarging loan bubble over higher education.
Author: Jeff Gitlen
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