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What You Need to Know About the Trump Student Loan Forgiveness Program


Now that Donald Trump has been elected President it’s time to start planning for the new Trump Student Loan Forgiveness Program.

Early indications are the stock market thinks income and profit are going to improve for student loan companies like Navient. Keep in mind the markets are driven by the chance or opportunity of profitability so the way I interpret the market response is that more money is anticipated to be returned to Navient and other private student loan lenders in the form of profit.

Here is the stock performance on the day after the election and you can see the share price rocketed straight up today.

President-Elect Trump has indicated he will take swift action to eliminate executive actions put in place by Obama. The rolling back of these changes is not as far fetched as you might think. According to CNN, “Trump could issue a blanket order that rolls back every executive order Obama signed on the first day of his presidency, if he wanted to. He could also order every agency to begin a process of replacing the rules of the previous administration.”

Some of the federal student loan programs that were created or driven by executive action or orders by President Obama might see these changes with Trump cancellation of Obama’s directives. These include:

However, Trump did say on the campaign trail he hoped to “cap student loan payments at 12.5% of borrowers’ income and would only require borrowers to make payments for 15 years.”

He also expressed a concern that college administrative bloat was unnecessarily causing student tuition costs to rise. But his emphasis on this, like much of his stated plan, has been lacking detail. For example, Trump has been both critical of the cost of regulation driving up tuition and policy analysts have been critical that the lack of regulation allowed tuition to rise.

Ultimately dealing with rising college costs, student loan affordable repayment programs, and radically altering the Department of Education can have big benefits and risks for student considering taking on federal student loan debt for higher education.

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