If President-elect Donald Trump makes good on his campaign promises, some borrowers who took out federal student loans and use an income-based repayment plan may get a better deal.
Trump's proposal comes with trade-offs. Borrowers will have higher monthly payments under Trump's repayment plan, but would have their student loan debt forgiven sooner.
Here are the details Trump has proposed:
- Borrowers contribute 12.5 percent of their income if they chose a repayment plan instead of 10 percent required under current repayment plans.
- After 15 years in a repayment plan, borrowers could have their debt forgiven. Currently, borrowers in repayment plans have to wait 20 years or 25 years to have their loans canceled.