The Trump administration has proposed placing limits on federal student borrowing programs as part of a series of initiatives to amend the Higher Education Act, The Hill reported. “We need to modernize our higher education system to make it affordable, flexible and more outcome-oriented so that all Americans, young and old, can learn the skills they need to secure and retain good-paying jobs,” White House senior adviser Ivanka Trump said. A number of the proposals seek to change the borrowing and loan-repayment process. A senior administration official said that the White House wants to institute a limit on loans through the PLUS program, which graduate students and parents of undergraduates use to help pay for college or trade school. The official did not say what the loan cap would be, but that it could vary by program rather than by institution. The administration is also calling for Congress to simplify loan-repayment programs, in part by condensing five income-driven repayment plans into one plan that would cap monthly payments at 12.5 percent of the borrower's discretionary income. The proposals are the first major priorities from President Trump's White House touching on the Higher Education Act, which was last significantly amended in 2008. The recommendations come from the National Council for the American Worker. The Department of Education under President Trump has garnered criticism from some corners for its rollback of Obama-era regulations aimed at protecting borrowers from predatory loan practices, but the White House asserted that the proposed changes to the Higher Education Act would ultimately benefit students seeking to enter the workforce. “We think these are absolutely critical reforms and really the most comprehensive approach to higher ed reform in over a decade,” Ivanka Trump said. “So we’re very excited to work with members on both sides of the aisle to advance these and other important education initiatives.”
