Trump Wants to End Student Loan Forgiveness for Public Servants
So much for looking out for the working class! Trump wants to end loan forgiveness for public servants! Yep, you read that right! Trump gave the rich tax breaks and now, in his proposed 2020 budget, he wants to eliminate student load forgiveness for public servants! The program helps public employees and some non-profit employees who make payments on their loans for 10 years, according to WIVB. Public Service Loan Forgiveness program was created by President George W. Bush's administration in 2007.
Check out some of the other cuts Trump wants to make to education:
-A reduction of $7.1 billion — or 10 percent — of the Education Department's budget, leaving it with $64 billion in funding.
Restructuring income-driven repayment plans, which let borrowers repay their loans based on factors such as income and family size. There are currently a variety of plans that generally have borrowers pay between 10 and 15 percent of discretionary income. The budget calls for replacing this with a single plan, in which monthly payments are capped at 12.5 percent of income.
-Eliminating subsidized student loans, which could raise costs for borrowers.
-Undergraduate students in income-driven plans would have remaining debts forgiven after 15 years of monthly loan payments. This is five years sooner than the current plan. But graduate students would only have remaining debt forgiven after 30 years of monthly payments — which is five years later than the plan now.
If there is any good news for those who could be affected by the budget, its that the Democrat-controlled House is unlikely to pass the budget cuts!
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