Ivanka Trump’s Student Loan ‘Solution’ Just Creates More Problems

U.S.†student loan debt†is massive. Todayís average college student graduates with roughly $37,000 in debt, and over 44 million Americans have a combined $1.5 trillion in student loan debt — up 350 percent in the past 16 years.

Unsurprisingly, all this debt is terrible for the American economy.

Itís precisely the kind of issue the government ought to tackle, which is why it should be welcome news that the White House has announced a plan to address student loans. I say ďshould be,Ē though, because the ďsolutionĒ the Trump administration has put forward is hardly†a fix†for people drowning in debt.

As announced by Ivanka Trump, the†plan†aims to cut†many existing student loan programs and consolidate them into two options. While this would limit the loan plans that may work best for a particular individual or family, it would also simplify matters for†the many borrowers who are already overwhelmed trying to understand the nuances between plans.

The more problematic elements of the plan are the various mechanisms designed to block students from borrowing what they canít easily afford to pay back. On the one hand, itís obviously not†ideal to have people take on debt they canít realistically manage. On the other hand, if you make it a lot harder†to take out loans to pay for college, only the children of wealthy families will be able to pay tuition at our most respected institutions.

Although it’s unfortunate that poorer Americans have to take on massive debt to afford elite schools, at least the existing student loan system gives them the opportunity to elevate their lots in life. Cutting them off from access to these loans just further ensures that people born into privilege will get the most-valued diplomas.

Itís especially hard to ignore these ramifications given the college bribery scandal that dominated the news last week. Beyond the already inflated tuition, the rich are finding illicit ways to buy their kidsí way into school. They break the law because they know that graduating from these educational institutions sets them up for future success.

During†the†announcement, White House officials also mentioned — without much detail — that†they would start holding higher education schools financially responsible for some of the debt that students canít pay back.

First, thatís kind of hilarious coming from a guy who had to pay $25 million for defrauding students via Trump University. Second, while itís possible that this change will spur schools to charge less†and keep student debt lower, itís probably more likely that schools will†raise their tuition so they can better cover future loan defaults.

Bear in mind that in the recently released federal budget,†the White House called on Congress to end student loan forgiveness plans†for people who enter government or non-profit sectors. That should be as clear a sign as any that the administration isnít actually too concerned about working out a plan that helps graduates with their student loan debt.

Of course, someone like Ivanka isnít concerned with the damage this student loan finagling could cause; she and her family have always relied on their wealth and connections to get ahead.

If bright, low-income†kids canít afford to attend our top colleges anymore, do you really think the Trumps would see a problem with that?

Photo Credit: Getty Images

48 comments

Sarah A
Sarah Ayesterday

Thank you

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Janis K
Janis K26 days ago

Thanks for sharing.

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Leo Custer
Leo C26 days ago

Thank you for sharing!

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Emma L
Ellie L26 days ago

thanks for sharing

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Karen Swenson
Karen Swenson27 days ago

You have to have some ideas, even scummy ones, to come up with any kind of solution of this magnitude, so that leaves out Trump and Ivanka. This horrendous smell is coming from one of Trumps slimy wealthy weasels like, Steven Miller, and given to Trump and daughter to sell it, babbling incoherently, to his uneducated walking dead followers, who will grunt and scratch wildly showing their approval and support. I sincerely doubt Ivanka, and especially Trump, has ever read the "PLAN" or understand it.

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Jennifer H
Jennifer H27 days ago

Belinda L.... correction --- the trumps DON'T CARE. They fill their pockets and laugh and think of more ways to screw the public.

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Belinda Lang
Belinda Lang27 days ago

The Trumps have no idea how tough it is for the Average Joes out there.

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Colin C
Colin C27 days ago

Young educated people are vital for a vibrant economy. The State should provide free or as near to free education if it wants to invest in the future.

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Sherri S
Sherri S27 days ago

Yeah only Republicans be out to get the poor.... democrats would never do such a thing!

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Chrissie R
Chrissie R27 days ago

Would your opinions change if she changed her name.....???

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