Student loan debt is the second biggest in the nation, and the cost of education continues to rise. It should come as absolutely no surprise then, that student debt is becoming a topic of conversation on the 2016 Presidential campaign circuit.
Most recently, Democratic candidate Hillary Clinton made some big statements at a town hall in Exeter, New Hampshire. She told an enthusiastic crowd that, “It’s time to show some tough love to colleges and universities that let significant numbers of students fall behind.” She continued, saying, “No student should have to borrow to pay tuition at a public college or university.”
Clinton’s plan is a big one, and as the rollout and fanfare continues, critics and skeptics are certain that it would not pass. Compass Point’s Isaac Boltansky wrote that there was a, “low likelihood” that “Clinton’s plan calls to increase incentives for states to boost public higher-education spending and to enacting institutional risk-sharing for colleges would become law.” Boltansky added that he’s, “more optimistic on prospects for simplifying income-based repayment and boosting student loan servicers’ requirements.” Jeb Bush has also criticized Clinton’s plan as “irresponsible” and a “double-down on the failed Obama economic policies.”
Clinton’s plan is rolling out, and people from either side of the aisle are at the very least, interested. The plan is a $350 billion college affordability and student debt relief plan. The college affordability plan includes a goal to cut student loan rates for at least 25 million borrowers by using refinancing programs. The refinancing programs would apply to both private and federal loans. Clinton also mentioned a “Borrower Bill of Rights” to increase and secure servicer responsibilities.
The various proposals throughout Clinton’s education program would require congressional approval. Additionally, her preferred way of funding the programs—by capping value of itemized tax deductions for the wealthy—would also be scrutinized in congress in order to become law. Nonetheless, her vision is part of an important conversation about how this nation will manage its massive student debt in the years to come.
While the 2016 Presidential Election cycle continues, many Americans are facing student debt today. If you are paying off student debt, or getting ready to incur some debt, it is important to have a plan. An advisor at Apex Financial can help you figure out the best way to pay for your education and manage the loans to preserve and protect your family’s wealth. Call an advisor at Apex Financial Advisors today, to get started on furthering your education and managing your wealth.