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 were 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)
Creating Jobs
Trump also discussed how he would help solve the student loan 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 for 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, if elected, 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 really 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.
Trump’s Position on Student Loans
While Trump has been extremely vague about his plans for student loans if elected, here’s what we do know so far:
- Trump has stated that he does not want the federal government profiting off of student loans any longer (and blames government for driving up tuition costs)
- He thinks the Department of Education could “largely be eliminated,” but did not elaborate on how the $28 billion spent on Pell Grants for students would be affected
- He wants to restructure student loans but says government “can’t forgive these loans” outright…
- He wants to return student lending to private banks and away from the federal government (in order to improve salary data and allow students to make more informed decisions about whether the tuition costs are worth it)
- Proposed tying student loan decisions to the borrower’s future job prospects, an assessment likely based on the student’s major
- He wants to punish schools financially when their students fail to repay their loans, adding that he wants colleges themselves to have “skin in the game” and would be on the hook if too many of their former students defaulted on their loans
- He wants colleges to set more stringent standards for who is admitted, denying access to those it deems unlikely to succeed
As Trump continues to discuss his “plan” to fix the student loan crisis, we will continue to update this page with additional information to keep you informed.
For information about Hillary Clinton’s stance on student loans, click here.
My son has 90,000 private loans . He didn’t get his degree. He has a 11.00 an hour job and a roommate to help with rent. His loan ( he has 4)payment equal 900.00 a month. He can’t make the payments . He’s only able to make interest payments … if that. Is there any help for people in his situation. He can’t afford to finish school. He’s been out working for 41/2 years. He’s drowning and depressed about it all. Is there any help in sight?
Kelli that’s the big problem with private loans is that they don’t offer many protections for borrowers. Private loans are more geared for those with stable jobs and income, and then they benefit from reduced interest rates. Are you certain the loans are federal? I’ve spoken to a many number of people who thought their loans were private but in reality were federal. Who is the lender if you don’t mind me asking?
Who knows if anyone will read this or if this will even make a difference. I sure as hell hope so!!!! My son has debt of around 34K, which I know isn’t very much, but it’s enough, but wait there’s more, he needs 1 more credit to graduate as he was to graduate in May 2017. Wait, there’s more, we owe 22K yet for he couldn’t get a student loan for his last year of college and I, the Mom, couldn’t co-sign, because, well, we were homeless 6 months in 2016 and Mom’s credit isn’t so good. Imagine that!! Who’s credit is any good? No matter what your credit score is, it makes no difference, all depends on who is in the mood to allow you the money or not. Enough of my bitching!! I want Student Loan Forgiveness to continue forever. This country can afford it!!!!! I am sick of being on the long end of the screw you, you are a wasp and you don’t get nothing for free. I have worked 40 years of my life, I am 54, lost my Mom and Husband within 6 months of each other in 2017. My Son and I have survived, barely, but we are still on the positive side of life and wish that our beloved Government will continue to help all the people who need it. Thanks for reading this.
Hi Jill. Sorry for the super delayed response. The only suggestion I can make is to make sure that your son is in one of the income driven repayment plans. This way his payments will be affordable. They also have long forgiveness from anywhere between 20-25 years of payments, so there is hope for your son.
It is extremely difficult to payoff these loans. I believe I owe 80 thousand dollars and I work in a mediocre job even thou I love what I do. How can I pay these loans off. Iam positive that Trump will grant me much more consideration than the loan lender when they are speaking to me on the phone. Maybe I should asked him for a loan to pay them off he will most likely give me a better interest rate or pay them off for me. Can I be that lucky only God Knows after all education is the key to your success but it also can become the key to our financial burdens. Pray that God provides a way to help us all.
I’m 100% disabled and told I am not eligible to get my student loan dicharged on a loan that was origonally 20,000 and is now $142,913.53. I’m voting for Donald Trump. He seems to be the only politician to have a plan to help those of us being scalped by the government.
Kelly, Even if you are not able to get it discharged, you should try to enroll in an Income Based Repayment program if you are struggling with your payment–if you have low income there is a very good chance this will greatly lower your payment. If your loans are federal loans, you should be able to do this. You can contact your servicer and discuss with them for free, or hire a private company to help you navigate this, but if you go that route make sure the company you hire isn’t charging fees before providing services.
THE PRICE OF ATTENDING COLLEGE HAS NOT BEEN CONTROLLED BY LOCAL AND OR FEDERAL OVERSIGHT COMMITTEES. THE BOARD OF TRUSTEES IN EACH STATE OVER THE UNIVERSITIES AND COLLEGES HAVE JUST RAMPED UP THE COST OF ATTENDING COLLEGE KNOWING THAT THEY HAD VERY LITTLE GOVERANCE AND THE STUDENTS ARE THE ONES WITH NO WHERE TO GO EXCEPT PAY THE ESCALATING COSTS. TALK ABOUT BEING ON THE BOTTOM THE LADDER.
IF THE FEDERAL GOVERNMENT IS PROFITING OFF OF THE STUDENT LOANS THEN THEY NEED TO REDUCE THOSE LOANS BY THE AMOUNT OF PROFIT EACH YEAR FOR EVERY STUDENT. WHY IS IT THAT THE PEOPLE THAT ARE TRYING TO HELP THEMSELVES, THEIR FAMILIES AND COMMUNITIES AS WELL AS THE ENTIRE COUNTRY HAVE TO BEAR THE BURDEN WHEN THE VERY GOVERNMENT THEY SUPPORT IS TURNING A PROFIT??
BY THE WAY, YOU DON’T SUPPOSE THOSE SAME COLLEGES AND UNIVERSITIES WERE LOSING MONEY DO YOU???
We go to school to get a better education so, we can get the promising jobs… But in the end we get screwed because we’re left paying these expensive loans back. For example I majored in criminal justice, I received my BS and Masters in criminal justice and has yet found job in my field. But, yet I owe 70,000 in student loans and can’t find a job in my field that’s paying at least 50,000 a year. Really!!! So, if you really sit back and do the math its just ridiculous. So, now I sit and wonder why did I go to school. Because going to school has left me broke, in debt, and student loan has my credit all screwed up. I think going to school is a rip off and the government just wants our money. I borrowed graduated from college owing 20,00 and believe or not. I owe 70,000 back now. So, I really hope Trump finds a way to fix this problem and rip off.
P, if you have a masters in criminal justice you should look into the CIA or FBI. They are looking and hiring
Finally……….An American WORTH voting for.
Just a suggestion – use some of the profits to give attending students discounted rates for internet and possibly offer low-income households a computer to use for the, now and expanding-future of on-line courses.
Thank you Mr. Trump for showing that their are people who care about those who care and try for themselelves and their families.
My education started as an inspiration to my step-daughter to stay in school. She knows what it is like to not be able to eat. Now she knows what it is like to see someone, who directly affects her life, succeed. You go man, with all my support.
I thought capitalizing interest was against the law. While in school, the interest is added to the principal balance and then interest accrues against that new principal balance. No wonder we’ve been paying for 5 years and reduced our principal by only $5.00. Daily interest continues to be added to the principal balance even out of school. If I refinance, I lose all rights to any future forgiveness programs that might come about.
What needs to be fixed is the increasing tuition rates. Ever since the government has gained more control over the colleges and universities, the tuition rates have gone up 6 times the inflation rate in the last 40 years. Seeing that at least half of the graduate programs/curriculum are nonsense (i.e. gender studies) and the first semester of courses are usually a rehash of junior and senior high school courses, college has become more of a racket than anything else. I graduated with a bachelors in business management and a minor in sales. I have work in high level sales positions that produced 6 figure potential. Only 4 or 5 course in college ended up being applicable to that job and the job offered a good training program that college wasn’t really necessary. I still have $20gs student loan hanging over my head, because college was so expensive. I didn’t need to invest that kind of money to learn to do what I’m doing or any job I have ever done.
I, too, have been paying my approximately $385.00 a month student loan for 18 years. What started out as a $56,000 loan increased to $77,000. I have never been in default. I have paid over $70,000 and still owe approximately $77,000. I have a 20 year old car, rent a home, and have no health insurance because I do not qualify for Obama care and can not afford the $633.00 a month (the least expensive insurance I can find). If i stop paying my student loan my wages will be garnished, I’ll lose my professional license and my tax returns will be taken. THIS IS EXTORTION! We’re mad as hell and we’re not going to take it anymore. I don’t want to hear empty promises from candidates. I want to see action. The govt. had better take note that a revolution is brewing and do something about it. At the very least forgive loans that have been paid faithfully for twenty years and grandfather people who have worked with low income populations earlier than 2007. And allow those of us who have worked part-time with those populations to count the hours toward loan forgiveness. I have worked 23 hours a week for the past 20 years with low income populations , but was told it cannot apply it toward any kind of loan forgiveness unless it is at least 30 hours a week. We need to band together and refuse to pay. Maybe change will occur when the millions of us serving this life sentence stand united.
I just told ASA that given the following:
The Government allowed my house to be illegally taken (with $335,000 in equity), bailed out Wells Fargo, bailed out GM (who was court mandated to pay off my Escalade and repossess it because it died on the road when I drove it), and the Government allowed a 3rd party vendor to overlook what the Federal Reserve had put into place for those of us illegally foreclosed; I was supposed to get $125,000 but received a check for $500. That foreclosure not only her me, but my very elderly parents whom I also take care of.
My original principal was $23,000 in 1993. I am a single mom, son’s father is deceased; lived on bare minimum wages to keep lights on, took deferments to stop my credit from going south.
When my life turned around and I made decent money, that $23,000 had grown to over $65,000. I started paying $1200 a month toward the debt which reduced it to …
$61,000 over 3 years. Then, I told my public company to restate their financials to the SEC, was fired and lost everything (note above).
That $23,000 is now $176,000. I told ASA that despite trying to get an IBR with ACS, that I could not; they filed the wrong documents with the wrong information with SOMEONE else’s SS# and other data on it under my name, that despite that; I was denied an IBR and denied again.
At this point, I stated quite clearly: I don’t care anymore.
I paid the government $1,000,000 in taxes over a 10 year period to … bail out WF, bail out GM, and bail out the company that I told the SEC was committing fraud (they were; the CFO went to jail).
And here I sit … renting a house, working from hand to mouth (the big salary went buh bye with the financial restatement … no one will hire a whistleblower).
I never, ever thought I’d type the words, “I will probably vote for Trump” but right now, he has my vote. He speaks to the heart of the matter.
Our government clowns have allowed companies to move jobs at will overseas losing American jobs. Americans who pay these stupid loans, Americans who pay their mortgages, Americans who buy American products. Our government clowns have NO idea how to run a business. Trump does. What he fails in other areas, as any great executive will do, is hire those who shore up his weak areas.
My fervent hope is that any loans originating from pre-1995 are forgiven so those of us carrying AARP cards and 9% + student loans, will be able TO retire and TO live.
Have you tried calling your servicer and asking for lower repayment options?
I have been working in the collections industry for over 15 years, specifically with defaulted student loans. I am able to help those who need assistance with getting a minimal payment arrangement to keep their loans in good standing and also get loans out of federal default. If you need assistance fill free to ask. I will try to answer and help as many as I can.
You know, it’s possible to get forbearances and deferments and lowered payments. But if you take any of these options, the loan continues to balloon with fees and interest. It doesn’t take long for it to far exceed the original amount borrowed. It is so discouraging to have a loan for 20+ years, pay on it long enough to have MET the principal….. but the loan never, ever goes away. That is my situation. My loan was originally $11,000, and now – despite years and years of payments, interspersed with a few hardship deferments, it is TRIPLE the original amount. It’s just wrong, and I’m sick of it. So, please @jucoline, don’t try to make it sound so simple.
We were victims of preditory loan sharking as young Americans. This is the real issue. Whenever you are ready let’s try a class action suit because of the facts and the extortion.sorry for any miss spelling. I quit when I realized I was being bullied on paper.so call legal documents we singed on to as juveniles. You are above ground today ,let’s give thanks and live . Whenever a class action suit is in the mix or if there is one, I will like to sing on to it.I will always pay back what I can afford in and given month but we know we are being robbed and it is by design.
I have been paying my student loan faithfully for 18 years. I struggle and now am retired living on a fixed income. My loan is $385.00 per month and will not be paid off until I am 83. I think after 20 years the balance should be forgiven. I will vote for Donald to make this happen. Finally US is for the working person.
I agree. I’ll be paying my loans with my Social Security. I made the debt and that’s not my issue. My issue is the way interest is compounded. It’s one step below those payday loan places. Put a stop to that and l can pay it off a lot faster. But you mostly pay interest and very little principle for years.
Funny how the GOVENRMENT is so against LOAN-SHARKING. Then they give out student loans at their rates. How are we supposed to get any where in life when we pay out $30k for an education, to hopefully get into a career; that will not only allow us to survive, but also, payback $40k+ to a government that allows exprotation of industries and not tighten imigration so we can have OUR jobs.
Bernie has pushed for this and more for working class people. Your vote is yours but theres a year before election. . Do research on other candidates
I’m 76 and my loans payments of $401 will never be paid off. I’ve been paying since 1987. I am in a zone where loan forgiveness is an option but since I took out some PLUS loans so my kids could go to college, I am not eligible. I cannot retire because of my student loans. I was more stupid in 1987.
Sharon, parent plus loans qualify for the income contingent repayment plan. I would look at that and see how it may help you.
I’m on social security and I’ve had to my sons three students loans. Geez were is help for someone like me??? I don’t even have a car!!
Have you asked for minimum payment options?
Trump is not going to do anything for the middle class working people. He is not supporting increase of minimum wages, he wants us to work 17 hours per day! just to be able to survive.
Raising the minimum wage is not going to help the middle class. It will only hurt the middle class and everyone else because the cost of living will increase to be able to cover the increase in wages. We need to increase our skill set so we can obtain jobs that provide better value to both employeer and employees
William,
Let’s face it — we were sold snake oil. The cost of higher education from the late 1980s until today is putting the true middle and lower middle class out of the race. My very bright granddaughter is starting to see college as out of the question. I stupidly returned to receive my bachelors degree in 1993. I will pay until I die. I have tried all manner of requests for forgiveness due to being a widow, and I will soon retire. I am skipping meals and medication to make ends meet. This is something the rich ruling class does not understand, Now will my granddaughter who lives with me have to skip college and become the working poor as well?
If you are considered middle class you shouldn’t have an issue unless you live way outside your means. I’m poor class living with my family and we together are able to get by. I would be able to live a prosperous life in lower class just because I know how to be conservative with my funds, with that being said I’m not settling with lower class. Neither should anybody else. Growing as individuals and as a country United is the only way we can get back to the way we were when we didn’t have debt and we were the country that loaned others money. The I can’t attitude won’t do anything for anybody. Faith, hope, Ingenuity and the American will to adapt and overcome are the only reasons we are still a nation today.
Why not file for BK to discharge the remaining debt? no more economic use ? The GOvt profits off student loans.. terrible.
Cary, there is very little wiggle room and very difficult to have student loans forgiven through bankruptcy. There’s a whole other process and most attorneys don’t want to deal with it, or charge tons of money to do so, which doesn’t help the debt situation. You basically need to be dirt poor or severely disabled to be considered.
I agree. It’s sad the amount of interest that I am paying because I deferred my loans. The working middle class never gets a break. I vote for Trump.