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More articles Related articleThe president and his team have been working on a plan for years to rein in the rising cost of college education.
They’ve worked with Congress to overhaul the student loan program and set the terms for how federal student loans are treated.
Now they’re starting to take the next step in their plans to cut costs for students.
The White House said Wednesday that it will soon release a new set of student loan repayment guidelines, a plan that would cap the interest rates for federal loans at 5.75 percent, down from 7.5 percent.
The new guidelines would apply to borrowers who make less than $125,000 a year.
“We know there are a lot of people that can’t get a job or can’t find a job,” the president said during a meeting with college leaders.
“They are in their 20s, they have families that don’t make enough money to pay for their college education.”
President Donald Trump speaks at a White House meeting on college affordability in Washington, Thursday, Feb. 3, 2019.
President Donald J. Trump and his administration are moving to significantly reduce the cost of federal student loan payments to students, a move that will make it harder for millions of students to graduate from high school and find a college job.
The president made the announcement during a White, House meeting with the presidents of 15 community colleges, a nonprofit group of public and private colleges that are the nation’s largest provider of postsecondary education.
The group includes the American Federation of State, County and Municipal Employees, the American Association of State Colleges and Universities, and many state universities.
The group’s president, Tom Glynn, said he expects the president’s plan to help students graduate and enter the workforce.
“If you’re in your 20s or in your 30s, if you’re a family that’s making too much money to support that education, we want to help you get a leg up,” he said.
Glynn said the administration will release the guidelines in the coming weeks.
The federal government has been trying to reinvigorate the student loans system for decades, and it hasn’t had much success, Glynn said.
He said the federal government needs to focus on helping students with low- and moderate-income parents.
The administration has set aside $1.4 trillion for the next five years for higher education, and the president has proposed raising tuition for students in order to help cover the cost.
He wants to raise the maximum amount students can borrow to $50,000, up from $30,000.
Trump has said he wants to help people pay for college, and he has repeatedly urged Congress to pass a bill to ease the burden on students.
In a meeting earlier this month with congressional leaders, he urged lawmakers to pass an emergency funding bill that would allow the government to borrow more money to cover costs.
“It’s absolutely clear that we can’t continue to be a nation that’s burdening people with $1 trillion of student loans,” he told reporters.
The college leaders in the meeting Wednesday said they welcomed the plan, which would allow them to reduce the amount of their loans they had to repay.
The groups also said they hoped the president would continue his push for tax reform, which will be an important focus for the administration in the next several months.
The plan would cap student loan interest rates at 5 percent for borrowers who have less than about $125 a year in debt, and 6.8 percent for those who have more than about that amount.
It would also limit the maximum rate on interest payments at 7.875 percent, according to a summary of the plan obtained by The Associated Press.