According to financial expert, Brian Bonar, there may be hope on the horizon for college students faced with the student loan debt. President-elect, Donald Trump has proposed capping interest rates on student loans.
A generous 12.5 percent cap has been discussed, as well as streamlining the entire U.S. Department of Education system. Trumps pre-election proposed plan would include linking student loan payments to income, and forgiving a balance, if any, after 15 years.
“There has only been a strong hint to what President-elect Trump will do to make college more affordable, and this remains to be seen” says Bonar. The student loan program could be up for privatization, but Trump would need Congressional members to pass such a deal. “Student loans are a hot topic yet any new deals between Trump and Congress are going to be a major test in cooperation,” adds Bonar.
College Financing Today
US college graduates have accumulated a combined $ 1.2 trillion in student loan debt, and one in four borrowers are overdue more than 90 days in their payments. The bulk of student debt (80%) is guaranteed by the Department of Education. Students that default on their loans leave taxpayers footing the bill. In the last five years, student loan debt has increased by $448 billion dollars.
College students typically graduate with average loans of more than $30,000. Add to that the fact that many graduates struggle to find a good paying full-time job after graduation, and it becomes easy to understand how students are facing this crisis. Currently, there’s a student loan payment plan, signed by President Obama that charges 10 percent or less, according to income, but its only available to loans signed after October 2007.
So, what options does one take when college hangs in the balance? Financial expert, Brian Bonar says students must make tough decisions. Attending a less expensive university, or perhaps the first two years of undergrad school, students can attend an affordable local college then transfer. “Typically, aspiring students don’t consider the challenges of paying off a college education. They don’t choose the affordable options,” says Bonar.
Brian Bonar is the CEO of Dalrada Financial Corporation in California. He’s a uniquely qualified expert that has founded several companies and for nearly 30 years enjoyed a highly successful career. Bonar uses his experience, leadership and exposure to financially savvy clients to produce innovative strategies that streamline costs and boost productivity.