Very recently, Hillary Clinton announced a new plan for student loan borrowers that are entrepreneurs, specifically to benefit them. This is quite obviously good news for some, while there are millions of other borrowers that are not entrepreneurs – So, what about them? How will they be affected by this new plan, and what are the specifics?
- ALL borrowers will get a three month ‘rest’ on payments. What does this mean? It will allow federal student loan borrowers to not have to pay their loans for three months. During this time, Clinton plans to get the attention of borrowers and to get them the help they need during this time. As part of this process, Clinton plans to focus on having borrowers consolidate their loans as well as work on getting them paid back via income-repayment.
- If you did not know already, the interest rates for newer student loans are much lower than that of older student loans. Clinton’s plan will aim at allowing the older student loan debts to be refinanced at what the new student loans interest rates are now.
- Currently, deferment of student loans does not cover interest costs. With Clinton’s new plan, during the three month “pause” of having to pay student loans, interest costs will be basically taken care of during that break.
- There will be major crackdowns and investigations of predatory loan programs. For example, the Corinthian Colleges scandal has recently received relief. There are still many other borrowers who are waiting for the same type of relief. Other lenders under investigation are: Discover and Wells Fargo for instance. Clinton plans to take action against for-profit schools that may have taken advantage of borrowers, however she did not go into any detail on exactly how this will take place. Clinton also mentions that she plans to work with colleges to make going to school more affordable to encourage completion of attaining a degree.
- And saving the best for last…Clinton’s ultimate goal is to make college free to attend all together! This could be good and bad news as this new proposal to make all in-state colleges tuition free is for families with income less than $125,000 annually. This plan would essentially begin with Clinton’s first year in office. It would first start to benefit families that make less than $85,000 or less, and continue to increase until 2021 every year to meet that $125,000 annual income benefit. Clinton also plans to fund year-round Pell Grants to help more students nationwide pay for and complete college.
These amazing changes will not happen overnight, however it will improve if it is properly implemented and follows through. Clinton’s plans seem very appealing and have been helping her in her campaign tremendously as her opponent, Trump has not mentioned any concrete plans to aid in education.