Donald Trump has recently spoken about his position on the student loan crisis, and his opinion might surprise many. In an interview with thehill.com, Trump slammed the federal government for profiting on federal student loans. “That’s probably one of the only things the government shouldn’t make money off. I think it’s terrible that one of the only profit centers we have is student loans,” said Trump. As we have reported in the past, the Federal Student Loan programs turned a profit of $41.3 billion in 2013 while many borrowers are struggling to make their financial ends meet.
(Click here to see an infographic comparing Trump’s stance on student loans compares to Hillary Clinton’s)
Trump also discussed how he would help solve the problem by creating jobs in the private sector. “I don’t want to raise the minimum wage. I want to create jobs so people can get much more than that, so they can get five times what the minimum wage is,” said Trump. While this is a long term solution, Trump offered no information on what he would do immediately to help reduce the burden of student loans on the millions of borrowers. Specifically, he has not given any information on what will happen with the Student Loan Forgiveness programs that are currently offered by the Department of Education.
Student Loan Forgiveness Programs
With the popularity of the Student Loan Forgiveness programs and enrollment into these programs skyrocketing, Trump could find it very hard to be vocal against these programs or face losing the student vote. Though Trump is a conservative, his position on Student Loans seems to be somewhat liberal and we expect that he will continue to promote the loan forgiveness programs. By improving the job market borrowers will be able to make their payment rather than using their deferment and forbearance. If Trump truly feels that the government should not be profiting on student loans, then there is a possibility that he will elect to use the profits to expand the loan forgiveness programs as well as offering relief to borrowers who need immediate relief.
As Trump continues to discuss his plan to fix the student loan crisis, we will continue to update this page with additional information for our readers to stay informed.