Roundhill wrote:Will these assistance programs (Like IBR) still exist once Donald Trump is elected president? Serious question. My understanding is that even Obama has been trying to cut back on federal loan forgiveness in recent years. OL year looking to enter LS in the fall.
No one knows. Most likely scenario is probably that the programs get chipped away, especially for grad school, but existing borrowers get grandfathered. That's the trend so far. But yeah a radical congress and administration could go nuclear on it, who knows.
No. The trend is complete student loan debt forgiveness. Every program has been progressively better for a borrower of 200k. This shit of saying the programs will be chipped away ignores the last 20 years of student debt. Here's a brief history:
Students have to get student loans from private party lenders (e.g. banks) that are not dischargeable in bankruptcy. No payment plans other than default where the bank can collect its default judgment on your assets.
Students can get student loans through the government that are not dischargeable in bankruptcy. Income based repayment plans starting at 15% of income for 25 years.
Students can get student laons through govt that are non dischargeable in bankruptcy. Income based repayment plans start at 10% for 20 years. 10% for govt/501c3 workers for 10 years; no tax bomb.
Courts started discharging some student loans that were originally not dischargeable in bankruptcy.
Obama short circuited the courts and discharged some non-dischargeable student loans.
Bills have been proposed that would allow govt debtors to refi using lower interest rates and keeping fed protections
Eliminate tax bomb on 20 year PAYE and REPAYE
A dude running campaigning to represent his party in the presidential election has a major component of his platform built on removing student loan debt.
Can't wait for the next scary piece of legislation these guys pass!!!