New developments in the student loan forgiveness sector have cropped up.  Some speculation has been thrown around involving Hillary Clinton and her stance on student loans and the forgiveness policy.  Rush Limbaugh has stated on his website that Hillary Clinton may simply “announce a plan to forgive all student loans.”

This sounds like a sweet deal for plenty of people.  How many?  Just take the $1.3 trillion in debt and divide it by the average individual debt tally of around $30,000.  This proposal is definitely going to affect millions of people according to that math.

The plausibility of her proposal (maybe not the plan) is apparently high since she has been recorded saying that the student loan debt problem is “unconscionable or outrageous.”  According to Limbaugh, the public should not be surprised if it happens.

The repercussions of such a statement pretty much eclipses any of the Obama administration’s moves that were made towards loosening student loan forgiveness restrictions for defrauded students as well as teachers.  His most recent proposal aims to adjust Pell Grants for inflation, opening up of income driven payment plans, and loan forgiveness for public servants.  These changes help to alleviate student loan debt, but they are new and have no consistent data yet.  There have been proposals to introduce new federal refinancing rates which would reduce the fixed interest rates of outstanding federal loans.  By doing this, the government is attempting to mirror the success of private companies with their refinancing services.

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On the other hand, Donald Trump has proposed something completely different, though not officially.  Instead of attacking student loan debt through the government, Trump wishes to move control of student loan debt to the private market.  Instead of relying on federally back loans at fixed interest rates, privatization will make loans and their rates market driven.  He also advocates for a forward looking underwriting process which analyzes future potential earnings instead of previous credit history (something that is usually nonexistent for new college students).  On top of this, he calls for more accountability and discretion from colleges on acceptance and enrollment.  All of these points basically move accountability away from the government which is in direct opposition to most Democratic proposals.

This plan, though completely speculation, sounds like it will erase any debt held by a graduate or student.  But how does this work?  There are plenty of factors that need to be addressed; for instance, college tuition, private student loans, and private student loan refinancing are all aspects of the student loan package that have clear impacts on the situation.  How are these affected by a total forgiveness proposal?  Only time will tell since most of this is coming from a prediction.