Student Loan Debt And Repayment
There’s no question that earning a college degree is important for obtaining job security and long-term financial gain. Yet, more and more occupations are requiring advanced educational degrees and certificates, leaving many with an overwhelming amount of student loan debt. In turn, President Donald Trump’s proposed education budget has included eliminating former Public Service Loan Forgiveness programs and is making changes in regards to student loans and even parents that have dependents listed on their taxes that are current students. This legislation (Tax Cuts & Jobs Act), which has not yet passed the Senate, has also set forth changes in interest deduction and graduate tuition wavers, as well as improvements to the American Opportunity Tax Credit.
Fast forward to March of 2018—while Congress ignored many of the current administration’s budget proposals in regards to eliminating the Public Service Loan Forgiveness Program, it allocated $350 million for the Department of Education to help borrowers with previously unqualified repayment plans gains student loan forgiveness, as explained by Student Debt Relief. However, the $350 million is not believed to be enough for all those that apply, especially because this amount includes those that previously did not qualify for public service loan forgiveness.
President Trump would like to combine current repayment plans into an Income-Based Repayment program (IBR). He has also promised to decrease funding for the Department of Education, and has made plans to lower federal spending in order to cover the increase in forgiveness amounts. Among other views, President Trump also feels that it’s important for colleges to lower their tuition rates and spend endowment monies on students in an effort to do so.
What does this mean for those with current student loans? Will policy revisions and changes affect students with private loans? What about those in default on their student loan payments?
As Georgia Bankruptcy Lawyers, Ira D. Gingold and Jamie L. Gingold of Gingold & Gingold, LLC, have helped many individuals with substantial student loan debt improve their financial situation and pay their loans efficiently. To speak with us concerning your options, call for a free confidential consultation today.