Where Does Each 2016 Presidential Candidate Stand On Student Loans?
Vote for your presidential candidate at the bottom of this page!
The Wall Street Journal recently reported that 2015 graduates are more indebted than any other class in history. This unfortunate title is sure to be stolen by 2016 graduates if current trends continue. The average graduate with student-loan debt owes more than $35,000. It’s no wonder most student loan borrowers indicate that their debt is a major source of stress in their lives.
What can be done to combat the rising and debilitating cost of college? Let’s take a look at where the current front-running presidential candidates stand on this significant issue.
Democrats:
Hillary Clinton
[Photo Cred: Sherrie]
Clinton has proposed the “New College Compact” which would eliminate student loan debt by…
- Offering tuition-free community college
- Giving states $175 billion in grants to lower the cost of education
- Incentivizing states to increase oversight of public universities and take action to curb the growth of tuition cost
Additionally, Clinton’s plan would make student loans more affordable by…
- Allowing current student loans to be refinanced at current interest rates
- End the profits that the federal government makes from student loans
- Create an income-based repayment program that would adjust debt payments based on post-graduation earnings and ensure that graduates never pay more than 10% of their income toward loans
Bernie Sanders
[Photo Cred: Phil Roeder]
Bernie goes a step further than Clinton by proposing to eliminate tuition and fees altogether at public colleges and universities with his “College for All Act”. Sanders’ goal is to take money from Wall Street and put it back into education to help fund his tuition-free college plan.
A few additional key points include:
- Borrowers would be able to refinance their loans based on current interest rates for students
- Student loan interest rates would be reduced to 2.32%
- Expanded work-study program for students
Republicans:
Ted Cruz
[Photo Cred: Gage Skidmore]
Ted Cruz has no official policy positions on student loans. He has said little publicly about student debt, although he has acknowledged that he took out student loans himself to finance his own education. As Senator, Cruz voted in favor of capping federal student loan interest rates, but he also voted against Senator Elizabeth Warren’s student loan refinancing bill. Ultimately, Cruz’s positions on higher education and student debt are a bit puzzling.
Marco Rubio
[Photo Cred: MarcoRubioPhotos]
Rubio’s plan would match students with investors who would bankroll their education in exchange for a cut of their future income. His plan also aims to lower costs by increasing competition between schools.
The main points:
- Change accreditation standards so that more schools can compete with each other
- Create an income-based repayment program
- Create “student investment programs” that would allow investors to pay for students’ college tuition in return for a portion of their income
- Increase accountability by making colleges and universities provide data to potential students about what kind of income they can expect to earn upon graduation
Donald Trump
[Photo Cred: Gage Skidmore]
While Donald Trump hasn’t issued an official plan regarding student loans, he has publicly criticized federal profit from student loans, a scheme he has called one of the “only profit centers” in government. Though the critique is warranted—federal loan programs yielded a $41.3 billion profit in 2013—he has not yet put forth a concrete solution.
Student loan debt is increasingly becoming one of the biggest policy topics at all levels of our society’s political discourse. As a student loan borrower it’s important to know where the 2016 presidential candidates stand on this issue so you can be well-informed about how future legislature could affect you and your debt.
Which candidate do you think would do the most to help relieve borrowers of current and future student loan debt? Select your candidate below!
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