Trump budget proposes changes to federal student loans

Paying for College
1

The Trump budget proposal will almost certainly be revised by Congress, but the current proposal would eliminate federal subsidies for student loans, increasing the interest rates students and their families would have to pay. It also terminates the Public Service Loan Forgiveness program. Additional details here:

http://www.npr.org/sections/ed/2017/05/22/529534031/president-trumps-budget-proposal-calls-for-deep-cuts-to-education

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But this part seems to balance out any negative affects to those who would have repayment issues…


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Simplifying student loan repayment plans — a proposal that enjoys broad, bipartisan support. Currently, borrowers have a dizzying array of options: standard repayment (a 10-year term), graduated, extended, pay-as-you-earn, income-based, income-contingent and public service loan forgiveness. Trump's budget would create just one repayment plan that caps monthly payments at 12.5 percent of discretionary income. For undergraduate borrowers, the balance would be forgiven after 15 years.

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Another proposal in this budget with broad support: making Pell Grants, which provide tuition aid for low-income students, available year-round. Currently you can only get one in the fall and one in the spring.

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Luckily for so many reasons, his budget proposal has been declared DOA.

There’s enough to worry about… I’ll wait until there is something remotely concrete and then I’ll dig into it and worry :slight_smile:

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^That’s a good philosophy for life in general! I try to remember it when I start obsessing about something.

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<<<
his budget proposal has been declared DOA.
<<<

that’s pretty much the declaration for any president’s budget.

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The president’s budgets are sort of a ‘wish list.’ Congress might pick a few things and incorporate them into the budget bill, but most never see the light of day.

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MODERATOR’S NOTE:
Let’s stay away from how the budget approval process works. It’s beyond the scope of the original post, and will only serve to stray into waters not allowed on CC. The OP is relating the article as it relates to student loans, so responses should be confined to that area, especially since the thread is in the FA subform. Thanks.