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White House proposes new limits on student borrowing for school

The Trump administration on Monday proposed new limits on federal student loans taken out by parents and graduate students as part of a broader proposal to curb the cost of college.

White House officials included the plan in a list of suggested changes to the Higher Education Act, a sweeping federal law that governs student lending. The legislation is getting its first overhaul from Congress in more than a decade.

Ivanka Trump, the daughter and adviser of President Donald Trump, unveiled the plan at a meeting of the National Council for the American Worker, an advisory group that Ivanka Trump helps lead.

A primary goal of the proposal is to curb the growth of college tuition rates and reduce the nation’s student debt load, which has reached nearly $1.5 trillion and has more than tripled since 2003.

The White House’s proposed solution is to cap federal loan programs available to students’ parents and to graduate students. The plan doesn’t propose specific limits, but officials suggested it could vary based on academic program.

Underpinning that idea is a belief that colleges are largely responsible for the nation’s debt woes. The White House says easy access to aid has led colleges to drive up prices, adding that they are “unable or unwilling” to make education more affordable.

Borrower advocates said they welcome attention to the topic but don’t think the White House plan will help. Federal loans for students’ parents and graduate students total about $25 billion a year, compared to $151 billion in total federal student loans.

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