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Trump Shows Further Education Support

One of the biggest challenges that the nation’s economy is facing right now is the pending student loan bubble. Due to the continued dramatic rise in the cost of college, more students than ever before are forced to take out debt to pay for school and a large percentage of this debt is guaranteed by the federal government in some way. Unfortunately, many students are not able to pay back this debt as agreed due to low entry-level salaries. This has led to a higher rate of default in student loans.

 

While it was unclear how this problem would be handled by the new administration, another recent news story (http://www.parentherald.com/articles/93215/20161212/usa-directs-50-billion-loan-portfolio-funds-education-philanthropy-investing.htm) has confirmed that the Trump administration looks forward to continuing to support the higher education needs of young adults.

 

This past week, the US Aid Funds announced that it would be able to continue to support its loan partners. The US Aid Fund is a federally sponsored entity that guarantees a significant amount of student loans. In total, this entity, and others like it guarantee over $50 billion. One concern that many people had was that the new Trump administration would no longer support these loans, which would have ultimately led to a much higher cost of borrowing. Fortunately for students, they have showed more support recently.

 

Beyond the recent show of support, the Trump party has given indications that it would like to offer relief to those that have high student loan payments. These could include forgiveness of debt, interest rate reductions, and extended repayment terms.

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