"With the latest Congressional budget battle just ended, President Donald Trump just submitted his budget proposal for fiscal year 2019. The $4.4 trillion budget boosts spending on the military and infrastructure while cutting funding a number of programs, including Medicare," Student Loan Hero reports.
"Among the Trump budget cuts are those to education spending. The budget calls for huge changes to the way student loans are repaid — including streamlining the income-driven repayment (IDR) program and getting rid of Public Service Loan Forgiveness (PSLF).
However, some of the suggestions in the Trump budget proposal are what we’ve seen before, including changes to IDR and PSLF.
'There’s not a lot that’s new here,' said Adam Minsky, a student loan lawyer. 'He’s made these proposals before. Right now, some of the issues raised in the Trump administration’s proposal are addressed in the PROSPER Act, a higher education bill going through Congress right now.'
...The administration’s budget proposal, like the PROSPER Act, puts an end to PSLF, a popular program that allows borrowers to have their loan balances forgiven after making 120 consecutive payments while working for nonprofit or government agencies.
While the budget proposal points out that getting rid of PSLF would save the government billions of dollars, it could have consequences for many low-income workers.
'Eliminating PSLF would be an acknowledgment that we will be burying those who work in the public and not-for-profit sector in even more debt,' said Justin Draeger, president of the National Association of Student Financial Aid Administrators (NASFAA). 'There will be well-deserved, widespread backlash at the idea of taking away benefits away from our nation’s educators, firefighters, police officers, nurses, and social workers.'"
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Publication Date: 2/13/2018