Trump administration looking to create new cap on student loans
The Trump administration is looking to create a new cap on how much students and parents can borrow to pay for college.
President Donald Trump is pushing a plan that would create a new cap on student loan borrowing to prevent borrowers from taking on unmanageable debt. Right now, there is a $57,000 limit for undergrad students, but no limit for those in graduate programs.
Sheryl Mihopoulos, vice president of financial aid services at Adelphi University, says a cap on federal financial aid may drive students to use private alternative loans, as well as possibly limit the amount borrowed for indirect costs like living expenses and food.
Mihopoulos says the cap would also limit college choice, if a student is accepted into a high-tuition school such as the Ivy League institutions.
The Trump administration didn't say how much the cap would be.
But many students who spoke with News 12 say they're against the plan.
The president's proposal would need congressional approval, but Democrats who control the House haven't said yet whether they'll support it.
Financial aid experts say the proposal will likely undergo several revisions before Congress takes a vote by the end of the summer.