In a 2015 interview with The Hill, Republican presidential candidate Donald Trump said he was the best candidate to help millennials get jobs and put an end to student debt. He said:
One of the biggest questions I get is from people in college [about student loans]. They’re in college — they’re doing well but they’ve got student loans up to the neck. They’re swimming in these loans. That’s probably one of the only things the government shouldn’t make money off — I think it’s terrible that one of the only profit centers we have is student loans.
I’ll see so many young people and they work really hard for four years. They borrowed money. Their parents don’t have much. They work all together and they mortgage their future. They get good marks — I’m not even talking about the ones that are at the bottom, I’m talking about the ones at the top. They can’t get jobs and they don’t know what to do.
Trump also explained that he did not want to raise the minimum wage. Instead, he believes his policies will create jobs that enables individuals to make “five times what the minimum wage is.”
In the upcoming election, many voters are concerned with how much money they have to spend. For millennial voters, that is unfortunately tied to student debt, numbering in the trillions nationally. Where does Donald Trump stand? As stated above, including in his 2015 book Crippled America, the government should not be profiting off of student loans.
In addition, Trump wants to get the federal government completely out of the student loan business. He would prefer private lenders and colleges to work together to decide what types of loans to offer to students. Although, some are concerned that Trump’s stance could negatively impact fields–such as liberal arts or humanities–if they are not considered the types of degrees that lead to employment.
To illustrate, loans for an English degree might be denied if it is thought that the student would not have the ability to get a job that allows them to pay off loans numbering in the thousands. As a result, it could lead to fewer choices for student loan eligibility. Students might either have to change majors or forfeit the loan. Critics say that it means only the well off could afford to pursue most liberal arts majors.
Moreover, at a Fox News town hall in Wisconsin in April, Trump expressed his desire to end the Department of Education by stating:
The Department of Education is massive and it can be largely eliminated. Now you maybe want to have a little bit of, you know, tentacles out there, make sure everything — but largely we can eliminate the Department of Education.
Still, Trump has not shared how he would fill the functions the department currently addresses. He also has not yet laid out any specific proposals or plans to tackle the student loan debt problem. One thing is certain. If the changes mentioned earlier were to take place, the private student loan market would see a boost in business and value. Shares for private companies in the student loan business, whether it’s originating private loans, collecting private debt, or even consolidating student loans, would see an increase in value as a result.