The total of student loan debts in the United States is almost at $1.3 trillion dollars and is considered to be the next bubble following the housing bubble that burst in 2008 causing the Great Recession. President Elect Donald Trump, New York Governor Andrew Cuomo, and Maryland Governor Larry Hogan believe that they have plans to solve the debt crisis for young graduates.
Donald Trump’s Student Loan Forgiveness Plan
Trump's proposal is to make payments more manageable for graduates; Trump wants loaners to make the graduates monthly payments that are in accordance to the salary earnings of the student. The proposal also says that after a certain period of time the loans would be forgiven per student.
Trump’s plan would make significant decreases to the cost of attending highly endowed universities. The proposal suggests that the university use the endowments it receives to help subsidize costs for tuition, housing, and other costs.
New York Governor Andrew Cuomo
Governor Cuomo has proposed a plan that will tackle the issue of debt before they happen; eligible students will be able to attend New York public colleges for no tuition cost.
Eligible students will be those who come from families that earn less than $125,000 per year. The cost of tuition would be covered by supplementing existing state and federal grant programs. Under Cuomo the plan would begin this fall, eligible to students who’s families earn less than $100,00 annually and by 2019 would cover students who come from families earning less than $125,000 per year.
Maryland Governor Larry Hogan
Larry Hogan looks to make life easier for students and graduates who are residents of Maryland. Hogan has announced that under his proposal student loan payments will become tax deductible for students and graduates who earn less than $200,00 dollars (or less than $250,00 dollars per couple).
Hogan’s proposal will also fund caps that limit tuition increases to 2%. One of the main causes of the student loan debt crisis being the continuous increases in tuition making Hogan’s proposal a model example for other states.
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