The amount of personal and student loans every school must turn over to the government has been doubled to $15 billion a year under a deal to offset low-level unemployment.
CNN’s Kate Bolduan reports on potential consequences from allowing students to settle their loans early in a plan to try to ease the struggling economy.
If enacted, President Trump’s plan to ease student loan burdens in exchange for earning a better-paying job would bring with it uncertain results, says CNN Chief Economic Correspondent Christine Romans.
Tens of millions of students each year are on track to graduate with debts that in some cases could surpass $100,000. That’s up from the time when just 100,000 new students graduated in 1981. One-third of graduates are struggling to pay their bills, leading to a 40% delinquency rate on student loans.
The effects of Trump’s proposed compromise to ease student loan debt might vary from person to person depending on their loan scenario. More than $1.4 trillion of student loans were outstanding at the end of 2016, according to the Federal Reserve Bank of New York.