Wednesday, May 23 2018 | Updated at 02:42 PM EDT

Stay Connected With Us F T R

May 19, 2017 08:03 AM EDT

Even during the campaign trail, President Donald Trump already said that one of the changes he will make in education is the student loan repayment scheme. Indeed, some recently obtained documents revealed that the changes will greatly impact college students and graduates.

Trump's proposed student loan repayment scheme is income-based where students have to pay their loans a little higher but will have a shorter time toward loan forgiveness.

Specifically, the new scheme has a cap repayment of 12.5 percent of the borrower's income with a loan forgiveness for the balance after 15 years. That sounds promising - at least for those with an undergraduate degree because the current student loan repayment is capped at 10 percent of the borrower's income with a loan forgiveness after 20 years.

However, those who have graduate degrees are not as happy as those with undergraduate degrees and all for a good reason. Those with graduates degrees have the same cap repayment of 12.5 percent but with a loan forgiveness after 30 years. Compare that to the present repayment scheme where those with advanced degrees only have a 10 percent cap repayment but a loan forgiveness after 25 years. In short, they will have to pay a bigger amount for a much longer period of time.

Aside from this, the Trump administration also wants to eliminate the Public Service Loan Forgiveness program which wipes out federal student debt after the borrower made consistent payments for 10 years. According to Sam Clovis, the policy director and national co-chair of Trump's campaign, it should be market-driven where banks, instead of the federal government, make the loan decisions for students.

No one knows for sure how the borrowers will be affected if the proposed elimination pushes through. To date, there are more than 552,000 people who are receiving the benefit. Andy Josuweit, CEO of Student Loan Hero, said that doing so would make it more difficult for students to secure a loan.

See Now: Facebook will use AI to detect users with suicidal thoughts and prevent suicide

Follows Student Loan, Student Debt, Student Loan Repayment
© 2017 University Herald, All rights reserved. Do not reproduce without permission.

Must Read

Here is NASA’s Take On Anonymous Hackers Alien Claims [VIDEO]

Jun 28, 2017 AM EDTNASA official says no alien has been found until today.

International Cyber Attack Strikes Again: Ransomware Hits Companies Worldwide [VIDEO]

Jun 28, 2017 AM EDTOver 2,000 computers in about a dozen countries were affected.

The Magic of Celebrity Involvement: How Projects and Concepts Get Public Nod When Icons Get Involved [VIDEO]

Jun 28, 2017 AM EDTDo celebrities really affect marketing?

Student Loans In Focus: How Much Do Students Really Borrow To Attend The Top 10 Schools [VIDEO]

Jun 26, 2017 AM EDTFor most students, going into the Top 10 schools is a dream come true. But is the expense in studying in these schools worth it?