What you need to know about student loans.
Student loan relief has been a staple of the Trump administration’s campaign promises, but the plan has been stalled in Congress.
Here’s what you need know about it.
(Jenny Starrs/The Washington Post) What you can do to save student loan paymentsTrump has proposed eliminating interest rate caps, which he has described as “worse than the Bush tax cuts.”
He has also proposed lowering the standard deduction, making it more difficult for many Americans to deduct interest payments from their federal income taxes.
“The Trump administration is attempting to impose a 20 percent tax on American families,” Trump said in a statement.
“The only thing worse than the tax cuts for the rich, it is their plan to eliminate interest rates.
The only thing better is to give us our money back and put a stop to the fraud that the President has been committing.”
But Senate Democrats have been slow to move forward with the bill.
The Senate has not passed a budget since last fall.
And the House of Representatives has not taken up the bill in full.
That means the legislation, if it reaches the Senate, would have to go through the House first before moving to the Senate.
The plan was originally introduced in March and would have offered a $25,000 relief payment to students who had been underwater on their federal student loans over the last two years.
It also would have extended a $4,000 repayment limit for borrowers who had more than $100,000 in outstanding student loan balances.
The legislation had a bipartisan support in Congress, but Republican Sen. Lindsey Graham of South Carolina and Democratic Sen. Elizabeth Warren of Massachusetts led opposition to the legislation and the Trump White House announced it was no longer a priority for the president.
Trump has said that he is “furious” about the proposed cuts, but he has said he would consider them if they were approved by Congress.
He has not said whether he would sign off on the bill if it passes the Senate and goes to his desk.