President Trump and Student Loan Debt

As a hopeful optimist, I looked at President-elect Donald Trump’s proposal for student loan debt. His plan is to increase the rate of repayment from 10% as in Revised Pay As You Earn (REPAYE) to 12.5% so the student can be out of debt in fifteen years opposed to twenty. Several websites and students worry about the 2.5% increase and if they would be able to maintain a higher rate of payment compared to what they pay currently. Trump assured that after fifteen years, the rest of the debt would be forgiven. He believes the government shouldn’t be trying to make profits off student loans.  

Nerdwallet made a chart comparing the monthly payments of a student using REPAYE and then Trump’s plan. It does show that overall, larger monthly installments would be made under Trump’s plan. A student earning $20,000 would pay an average of $8 more every month; those earning $40,000 could expect a $43 or more increase, according to University Press.  Trump’s answer was almost too simple: pay more off, get out of debt faster.