Student loan debt is now the second highest consumer debt category - second only to mortgages and higher than credit card debt. According to Make Lemonade.com there are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt. The average student in the Class of 2016 has $37,172 in student loan debt, while the average student in the Class of 2017 has almost $40,000 in student loan debt. Approximately 11.0% of student loan debt is in default or over 90 days delinquent.
Here are a few potential ways that student loans could change at the federal and state levels:
1. Reauthorization of The Higher Education Act
As its name suggests, The Higher Education Act governs higher education policy, including student loans.
A lack of bipartisan agreement has led to the failure to reauthorize The Higher Education Act in recent years. However, with Democrats in control of the House and Republicans in control of the Senate, bipartisan leadership may be needed during the next Congress to get things done in Washington.
While both parties have indicated a willingness to simplify student loans, divergent views remain on the specifics.
How This Affects You: If both parties can find common ground, key issues could include the cost of higher education, how to address growing student loan debt, repayment plans and student loan forgiveness, among multiple others.
2. Increased Oversight of Student Loans
Expect Democrats in The House of Representatives to increase oversight over the U.S. Department of Education, which is led by Betsy DeVos, as well as the Consumer Financial Protection Bureau.
At the state level, regulators may ramp up oversight of student loan lenders and student loan servicers to ensure proper business practices. A recent example includes state attorneys general suing student loan powerhouse, Navient.
How This Affects You: Increased oversight comes at a cost, but is meant to ensure that student loan borrowers get a fair shake.
3. End of Student Loan Forgiveness?
How This Affects You: While student loan forgiveness may end, the time it takes for student loan forgiveness under income-driven repayment may not be worth it to student loan borrowers in the long run. You may be able to pay off student loans faster or refinance student loans to save money.
4. More Choices To Borrow and Repay Student Loans
President Trump wants to increase the role of the private sector - particularly private lenders such as banks - in the issuance of federal student loans.
Trump believes that the federal government generates too much "profit" from issuing student loans, and wants private sector lenders to participate in federal student loan origination.
How This Affects You: You may have more choices when it comes to borrowing student loans. This can result in more competition and lower rates, which can benefit consumers. It also means that - through student loan refinancing - you can continue to refinance student loans and may receive a lower interest rate.
That's why it is imperative for you to take action on your student loans - regardless of what politicians do. Call us at 1-833-562-7508 right now!
Source: https://www.forbes.com/sites/zackfriedman/2018/11/12/student-loans-election/#ce246b7dd6e2
Here are a few potential ways that student loans could change at the federal and state levels:
1. Reauthorization of The Higher Education Act
As its name suggests, The Higher Education Act governs higher education policy, including student loans.
A lack of bipartisan agreement has led to the failure to reauthorize The Higher Education Act in recent years. However, with Democrats in control of the House and Republicans in control of the Senate, bipartisan leadership may be needed during the next Congress to get things done in Washington.
While both parties have indicated a willingness to simplify student loans, divergent views remain on the specifics.
How This Affects You: If both parties can find common ground, key issues could include the cost of higher education, how to address growing student loan debt, repayment plans and student loan forgiveness, among multiple others.
2. Increased Oversight of Student Loans
Expect Democrats in The House of Representatives to increase oversight over the U.S. Department of Education, which is led by Betsy DeVos, as well as the Consumer Financial Protection Bureau.
At the state level, regulators may ramp up oversight of student loan lenders and student loan servicers to ensure proper business practices. A recent example includes state attorneys general suing student loan powerhouse, Navient.
How This Affects You: Increased oversight comes at a cost, but is meant to ensure that student loan borrowers get a fair shake.
3. End of Student Loan Forgiveness?
How This Affects You: While student loan forgiveness may end, the time it takes for student loan forgiveness under income-driven repayment may not be worth it to student loan borrowers in the long run. You may be able to pay off student loans faster or refinance student loans to save money.
4. More Choices To Borrow and Repay Student Loans
President Trump wants to increase the role of the private sector - particularly private lenders such as banks - in the issuance of federal student loans.
Trump believes that the federal government generates too much "profit" from issuing student loans, and wants private sector lenders to participate in federal student loan origination.
How This Affects You: You may have more choices when it comes to borrowing student loans. This can result in more competition and lower rates, which can benefit consumers. It also means that - through student loan refinancing - you can continue to refinance student loans and may receive a lower interest rate.
That's why it is imperative for you to take action on your student loans - regardless of what politicians do. Call us at 1-833-562-7508 right now!
Source: https://www.forbes.com/sites/zackfriedman/2018/11/12/student-loans-election/#ce246b7dd6e2
How The Midterm Elections May Affect Your Student Loans
Reviewed by Student Loans Center
on
November 14, 2018
Rating:
Reviewed by Student Loans Center
on
November 14, 2018
Rating:
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