The student loan debate is back and worse than ever.
For years, students and their families have been fighting for the right to pay for college.
Now that the Trump administration is threatening to cut federal student loan funding, they’re looking for a way to make sure that they’re getting their money back.
Send money to your own students, with the option to repay it with student loans.
This new version of the Trump Student Loan Reimbursement Program would give students the ability to send their own loans directly to their parents.
As of August 1, the program would be available to any student with a Pell Grant, a Direct Loan, a Traditional Loan or any combination of all of the above.
But not all students would be eligible for this program.
For those with loans in the default tier of the federal student loans system, Trump is offering to waive the program for students in the three highest-priority loan repayment tiers.
Students with the default status of Hardship, High Income, and Unpredictable would not be eligible to take advantage of the program.
“This is going to be a huge relief for a lot of students who have student loans in default,” student loans expert and former President Barack Obama adviser David Sirota told Recode.
“It will also allow people to have more control over the amount of money they have to pay back.
They will have a much more stable and predictable way to pay that back.”
Trump has been touting his new plan as a way for Americans to pay off student loans and save money on their taxes.
However, many in the student loan industry are skeptical of the new program and are concerned about how it will affect their industry.
“There’s a whole lot of things that could go wrong if the government doesn’t have access to student loan borrowers,” Sirotsa said.
“For the most part, the people in this industry aren’t willing to give up on those borrowers.
So this isn’t going to solve the problem, it’s going to just push it into the background.”
The new version is designed to provide borrowers with the ability of using federal student aid to pay down their student loans over time.
“This will help borrowers in default, but it’s also going to give them an incentive to go back to school,” Sibosaid.
“If you can get yourself a loan and get yourself back into school, you’re going to have a better chance of graduating.”
“I’m glad that the president is coming out and saying that we need to do this,” Sireson said.
Trump’s Student Loan Reform Program would not apply to students who are currently in the Default Tier of the Federal Student Aid System, but the president has not yet said whether he plans to do so in the future.
The president has also not provided a timeline for the implementation of the plan.