Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ US https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ The Trump administration wants to limit the amount of student loan loans
The Trump administration wants to limit the amount of student loan loans
"We want to encourage responsible borrowing," a senior administration official said during a talk with reporters.
Currently, the amount the student can borrow from the federal government is limited to $ 57,500 throughout the student's life. But parents of students and students are not confronted with such limitations and can take up as much as they need – at the price set by schools. The administration employee did not say what the limit proposed by the administration would be, but specifically mentions the PLUS loan program. Parents and students have to show creditworthiness to borrow from this program, and the interest rate – currently set at 7.6% ̵
1; is usually higher than loans from other federal programs.
Some research shows that unlimited credit can encourage colleges to raise the cost of education. take on behalf of their children $ 12,500 a year. But the bill never made it to the vote.
about what should be included in the update of the Higher Education Act, which has not been re-authorized since 2008.
While Congress has considered change for years, Republican Senator Laman Alexander – who is the chair of the Health, Education , labor and pensions Senate, said he would like to report on the legislation outside the committee this spring. He is increasing his efforts to get something before retiring by the end of 2020.
In a statement Monday, Lamar said it was "useful" to offer the White House proposals.
"I share the goals of the administration to cost college and make it easier for me to apply for federal student support and return student credits," he said.
The administration also proposed simplifying student loan payments and expanding the Pell Grant program for low-income students enrolled in short-term VET programs as proposed in Betsy DeVos Budget for Education Budget 2020 Minister of Education last week,
Priorities It is included expanding federal support for training programs for the workforce of prisoners who can be released, and increase transparency regarding the results of the students. The proposals came out of the National Council for the American Worker, which President Donald Trump established last year.
"We want Congress to re-orient the Higher Education Act and focus more on labor needs," the senior administration official said. Over the last two years, the administration has been criticized by Democrats for turning to non-profit colleges over students. With DeWos, the Department of Education is trying to abolish Obama's rule, designed to help students, beaten by non-profit colleges, get relief for their educational debt.
But after being tried by a lawyer general from 18 states and the District of Columbia, the court ordered DeVos to apply the rule and forgive $ 150 million in student debt.
CNN's Maigan Vazquez contributed to this story.