The Trump administration wants to impose a limit on student loan


"We want to encourage responsible borrowing," said a senior administration official during a call to reporters.

At present, the amount that an undergraduate student can borrow from the federal government is capped at $ 57,500 throughout his life. But parents of undergraduate and graduate students are not subject to any such limit and can borrow as much as they wish – at a price set by the schools.

The head of administration did not specify the limit proposed by the administration, but specifically mentioned the PLUS loan program. Parents and students must prove that they have the ability to borrow from this program and that the interest rate – currently set at 7.6% – is generally higher than that of loans. 39, other federal programs.

Some research suggests that an unlimited loan can encourage colleges to raise the price of tuition.

Last year, North Carolina Republican Representative Virginia Foxx proposed to limit graduate student borrowings to $ 28,500 a year and the amount that parents can borrow on behalf of their children. at $ 12,500 a year. But his bill has never been voted in the House.
DeVos wants to reduce again the budget allocated to student loan cancellation

Monday was the first time the White House set out its priorities on what should be included in an update of the Higher Education Act, which has not been re-authorized since 2008.

While Congress is considering changes for years, Republican Senator Tennessee, Lamar Alexander, who chairs the Senate Committee on Health, Education, Labor and Pensions, said he wanted report a bill in committee this spring. He is redoubling his efforts to get something done before retiring at the end of 2020.

In a statement Monday, Lamar said it was "useful" to have suggestions from the White House.

"I share the objectives of the administration which consists of making the college worthwhile and that it is simpler to ask students for financial assistance and repay their loans, " did he declare.

The administration also proposed to simplify the repayment of student loans and expand the Pell Grant program to low-income students enrolled in short-term vocational training programs – as proposed in the Secretary of State's 2020 budget. education, Betsy DeVos released last week.
Trump Chief of CFPB Advocates Management of Democrats

Other White House priorities include increased federal support for labor training programs for inmates eligible for release, and increased transparency of parole results. students.

The proposals came from the National Council of American Workers, created by President Donald Trump last year.

"We ask Congress to reorient the law on higher education and to focus more on the needs of the workforce," said the senior administration official.

Over the last two years, Democrats have blamed the administration for taking sides for for-profit colleges to the detriment of students. Under DeVos, the Department of Education has attempted to revert to an Obama era rule aimed at helping students deceived by for-profit colleges to obtain debt relief from their studies.

But after being sued by attorneys general of 18 states and the federal district of Columbia, a court ordered DeVos to implement the rule and cancel $ 150 million in student debt.

Maegan Vazquez from CNN contributed to this story.

Source link