Student debt is haunting 40 million Americans.
Those millions are still paying college loans, well into their thirties and forties.
So far, the following Presidential candidates have announced plans to deal with looming student loan debt.
Hillary Clinton: Wants to implement a $350 billion plan forcing taxpayers to reduce the cost of college, along with these key goals:
- No students should have to take out loans to go to college
- Schools must respect the needs of students and bring down costs
- The federal government will not make money off of student loans, but increase investment
- Current debtors will refinance their loans to a lower interest rate
- Make community college free
$350 billion is massive … and probably understated … new federal government programs complete with new bureaucracies.
- Tuition-free college education—The federal government will cover 67% of the cost, and the states will pay the remaining 33%. The federal government would impose a “Robin Hood” tax on Wall Street bankers and financiers to pay for this program.
- Reduce student loan interest rates to 2.32%.
- Current debtors would refinance loans to lower interest rates.
This $18 trillion estimated program is supposed to get the money from Wall Street—don’t count on it. It will be by plundering you now, your kids later, and the future of this country with massive inflation ahead.
- Simplify Existing Incentives to Help Students Pursue Higher Education
- Equip Students and Families with Information Necessary to Make Informed College Decisions
- Reduce Burden of Student Loan Debt by Establishing Automatic Income Based Repayment
- Reform Outdated Accreditation System to Accommodate Non-traditional Education
- Establish legal, accountable framework for students to repay loans based on what they earn after college.
- Modernize Higher Education System to Fit 21st Century Economy
- Has proposed no specific plan, but recognizes that student debtors carry a heavy burden.
- Believes that the federal government should not be profiting from these loans.
- Opposes free college
- Expand Pell Grants to poor people
- Shift payment of the loan interest to the schools
- Provide a $50,000 line of credit through an Education Savings Account, which borrowers will pay back over 25 years.
- Require schools to pay a portion of the debt which the students cannot.
- Off Education Savings Accounts to pay for other forms of education, including trade schools or online education.
- Create state-level databases that compare university time costs to borrowing, to help potential borrowers make wise decisions before taking out loans.
- Close the Department of Education, which has helped create the problem.
- Give the power of educational finance back to the states
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