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Sep 29, 2016 11:04 PM EDT

The Fate Of Student Loan Borrowers Is At Stake: Really? Find Out How...

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Student loan debt has been put under the spotlight since the commencement of the 2016 presidential elections. Expectations are sky high regarding the impact this election will have on $1.2 trillion student loan debt crisis in the country. What do you think?

REVEALED! Clinton and Trump's thoughts on student loan forgiveness

Before blindly believing the upcoming government, let's check out the views of Hillary Clinton and Donald Trump (the toughest contenders of this election) on student loan debt forgiveness.

Hillary Clinton - The Guardian Angel

If elected, the Democratic nominee Mrs. Clinton has these plans in store for the student loan borrowers:

  1. Allot approximately 115 billion dollars toward student loan forgiveness

  2. Provide potential benefits to more than 60% individuals (that's likely 25 million borrowers) struggling to make student loan payments

  3. Establish a 3-month mandatory suspension on every student loan payment so that borrowers get the time to work out a repayment plan like consolidation, refinancing, or other repayment plans

  4. Capping of income-based repayment plans from 15% to 10%of the borrower's monthly income

  5. Reward employers with a payroll tax deduction if they help employees with the student loan burden

  6. Make education affordable for low-income American families

It seems a debt free country is in the making. Isn't it?

Donald Trump - The King of Hell

Not really! But, this Republican candidate has something different in store for you. Find out what they are:

  1. Shift all student loans to the private sector. Because he did not support the government profiting from the student loans

  2. Upholds two opposite views at the same time (a) restructuring student loan and (b) withdrawal of the government from forgiving student loan. That's vague!

  3. Thinks of eliminating the Department of Education

  4. Wants the private banks to lend money for student loan

  5. Wants colleges to admit students who have higher chances of success (that's harsh for poor students!)

  6. Punish schools if their student fails to pay off their loans and wants the colleges to take part in the same game

That's a pain for student loan borrowers. Don't you agree?

I wish how Mr. Trump would handle this outsized crisis when he's too busy to fat-shame former Miss. Universe Alicia Machado (a strong supporter of Mrs. Hillary Clinton). I hope Mr. Trump to take the best decision to clear this deadlock if he wins the election.

Now, let's find out the future of student loan borrowers.

Faith of student loan borrowers - Shattered or restored

In these few months, a lot has been said about this presidential election and its effect on the massive student loan debt.

One thing I'm sure is - whoever wins the election, student loan debt will take a U-turn.

Here's what you should know before trusting the upcoming government for solving the student loan debt crisis:

1. Income-based repayment programs are at risk

Till now you have reaped the benefits of income-driven repayment (IDR) plans like Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE). And, why shouldn't you? These programs are offering affordable payment facilities based on your income.

But, some lawmakers are planning to call these fed programs a quit. If this happens, you can well imagine the catastrophe you have to deal with. All you can do is wait for the new government's decision on this.

2. Public Service Loan Forgiveness can be put to an end

Public Service Loan Forgiveness plan would forgive rest of your student loan only if you're a public service employee and make 120 regular monthly payments. Millions of student loan borrowers have benefitted from the Public Service Loan Forgiveness (PSLF). You may be one of them!

Of late, the cancellation of PSLF program, due to cost concerns, are making headlines. I think you need to worry about this if you work in public service. Don't you think so?

3. New protections for defrauded borrowers may or may not be implemented

Have you ever been defrauded or cheated by an institution? If so, then the Department of Education's new regulations will provide you relief, which will go into effect from the summer of 2017.

You have nothing to do except wait patiently for the opinion of the next President to come to the forefront. Will the upcoming President implement or throw it out?

4. Changes in student loan servicing

The Obama Administration has been working hard to fix servicing-related issues and resolve student loan defaults. What will happen if the new government halts the initiatives of Obama Administration? Will that hurt or help the student loan borrowers?

5. Federal student loan refinancing is at stake

Where private student loan refinancing have been growing slowly, individuals are enjoying the best interest rates under federal student loan refinancing. Student loan borrowers will suffer a lot if the new government ceases this federal program.

6. Congressional proposals may or may not be accepted

Various lawmakers have proposed quite a few bills to repair the cracks of the student loan system.

Some of them are:

  • a bill to eliminate student loan forgiveness taxability

  • a bill that'll allow student loan borrowers refinance their private student loan into federal student loan to help them repay their loans under income-driven repayment plan and become eligible for Public Service Forgiveness

  • proposals to simplify death and disability discharges to help struggling borrowers who may not be able to repay their loans

  • bills to streamline income-based repayment plan and student loan servicing

Now, whether or not these bills will be signed into laws depend on the next President.

We can just keep our finger's crossed.

So,

Whom should these borrowers vote?

Now, that's what borrowers should think carefully before casting their votes. Whether or not their future will be saved depends on who gets elected as the next President.

Programs designed to help borrowers are at stake. However, there's also a ray of hope of new forms of relief to bring out borrowers from this crisis.

So, think and vote!

All I can say is that if you have student loan debt burden, at least make an effort to pay them instead of waiting for new reforms to come.

Hope you take the best decision for yourself.

Author's Bio:

Phil Bradford is a financial web enthusiast. He is a regular contributor to debtconsolidationcare.com and an active participator to forums.debtcc.com. He has expert knowledge about personal finance issues. His passion for helping people who're stuck in financial problems has earned him recognition and honor in the industry. Besides writing financial articles, he loves to travel and cook.

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