The Trump Administration’s Deceitful Ploy to Put More Students in More Debt

Americans currently owe $1.5 trillion in student loans. More than a million borrowers default every year. Under past administrations, the federal government tried to make student loans easier to access, to both understand and pay off. In 2008, the Higher Education Act was updated to move the loan system to 100 percent direct lending through the Department of Education. The move had several benefits, according to the Center for American Progress: “This completely federalized system has resulted in many benefits: less on-the-ground industry influence in lending; repayment programs that are unavailable in the private market; and, though it may seem ironic given the current dissatisfaction with the repayment system, stronger consumer protections. Perhaps most importantly, the transition to direct lending saves the federal government roughly $6 billion per year funds that have resulted in an infusion of $36 billion of mandatory funding into the Pell Grant program over the past 10 years.”

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