By DAVID DORANETT | Updated Jan. 23, 2021 09:00:00 President Donald Trump’s administration on Thursday announced a plan to ease student loan debt.
The plan calls for eliminating debtors’ protections for six years.
In its announcement, the Department of Education said the Trump administration will “not take on student debtors” in the next six years and that it will “focus on eliminating the protections of student loans.”
The president said in the announcement that he will “make it easier for student loan borrowers to stay in school and stay in the workforce by eliminating their lifetime repayment limits, allowing students to refinance, and reducing the cost of student loan forgiveness.”
In December, Trump announced he was considering eliminating the lifetime repayment limit of federal student loans.
The Trump administration is taking steps to ease borrowers’ financial burdens, but the president said he is not eliminating the debtors protections.
Trump has made the change to reduce the burden on students.
Under the proposal, students will no long be required to repay student loans and can refinance into traditional debt.
That change would give students more options to repay their loans, which Trump said is the key to keeping them in school.
Under the plan, students would have more options on how to repay the loans.
Under the plan:A student who has been in school longer than six years would be able to refortify for a student loan that is at least 30 years old.
Under a plan proposed by the administration, students who have been in college for less than five years would have their federal student loan limits reduced from $5,000 to $2,500 per year.
A student who attended college for 10 years or more would be eligible for a federal student debt forgiveness program.
The program would be available to borrowers who are either unemployed or in the middle of a job hunt.
The president has said he would consider refinancing student loans at lower rates.
The plan also calls for extending forgiveness to students who received a government scholarship or loan from the government.
Under a plan, borrowers who received the scholarship or loans could refinance for the same amount, but borrowers who did not receive the scholarships or loans would not be eligible.
A student in repayment would still have to repay $2.4 million of their federal loans.
The president has been a vocal critic of the way the government treats student debt, calling the federal government “too big to fail.”
The plan to reduce student debt is part of his effort to get the government to reform its student loan policies.