Student Loans: Student Loan Forgiveness
Why student loan forgiveness now?
Will this legislation become law?
The White House has not responded to the new legislation. Trump or Senate Republicans have not supported upfront student loan forgiveness. Secretary of Education Betsy DeVos has said that student loan forgiveness can cost taxpayers billions of dollars and one of her jobs as Education Secretary is to balance the needs of both student loan borrowers and taxpayers. Both Trump and DeVos support the elimination of the Public Service Loan Forgiveness program, which forgives federal student loan debt for borrowers who work full-time for a non-profit or public service employer. However, Trump supports student loan forgiveness for federal student loans through income-driven repayment plans.
Student Loan Debt Statistics
According to the latest student loan debt statistics from Make Lemonade, there are 45 million borrowers who collectively owe more than $1.6 trillion of student loan debt. More than 43 million borrowers, or more than 95% of total student loan borrowers, hold federal student loan debt such as Direct Loans. Federal student loans account for $1.5 trillion of all outstanding student loan debt. Of this total, approximately 9 million borrowers have defaulted on their student loans, meaning they haven’t paid their student loans in at least 270 days.