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Nova writes: "Higher education faces massive changes in President Donald Trump's spending plan. The proposal unveiled Monday would sharply curtail income-based loan repayment plans, scratch the Public Service Loan Forgiveness Program, embolden the government to go after students who don't pay their loans and cut funding for federal work study in half."

President Donald Trump greets evangelical ministers in the Oval Office of the White House. (photo: Andrew Harrer/Bloomberg)
President Donald Trump greets evangelical ministers in the Oval Office of the White House. (photo: Andrew Harrer/Bloomberg)


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Safety Net With Massive Cuts to Housing, Food Stamps and Health Care

Trump's Budget Would End Student Loan Forgiveness Program

By Annie Nova, CNBC

13 February 18

 

igher education faces massive changes in President Donald Trump's spending plan.

The proposal unveiled Monday would sharply curtail income-based loan repayment plans, scratch the Public Service Loan Forgiveness Program, embolden the government to go after students who don't pay their loans and cut funding for federal work study in half.

Changes to loans would apply to borrowing after July 1, 2019, not including those loans provided to borrowers to finish their current education.

The budget would eliminate subsidized loans. Some 5.7 million students had subsidized loans in the 2016-2017 academic year, according to Mark Kantrowitz, a student loan expert.

The budget plan also would narrow the number of income-driven repayment plans — in which people pay back their loans at a rate that takes into consideration their income — from four to just one. Under that option, students' monthly payments would be capped at 12.5 percent. Students generally pay 10 percent of their discretionary income under current income-based repayment plans.

However, undergraduate students would have their loans forgiven after 15 years, compared with 20 years now. So they'd be paying more per month, but less overall. Graduate students, meanwhile, would not have their loans forgiven for 30 years.

Graduate students pay more

"Graduate students would be paying significantly more," Kantrowitz said.

Pell Grants would be expanded to cover short-term, training programs.

The Public Service Loan Forgiveness Program is eliminated in the proposed budget. This program allows former students who fulfill certain public service positions — such as public school teachers or health researchers — to have their loans erased after 10 years of on-time payments. Nearly two-thirds of student loan borrowers who've shown interest in the Public Service Loan Forgiveness earn less than $50,000 a year.

"You may have fewer people pursuing degrees in areas that will lead to public service occupations," said Kantrowitz. "You won't have as many prosecutors and public defenders. You won't have as many people pursuing law enforcement or becoming EMTs, firemen and members of the military."

People whose loans fall into delinquency would be subject to more stringent enforcement as the proposal also calls to "streamline the Department of Education's ability to verify applicants' income data held by the Internal Revenue Service."

Some 30 programs would also lose funding, including the Supporting Effective Instruction State Grants, 21st Century Community Learning Centers and Federal Supplemental Educational Opportunity Grant programs.

The president's proposal is subject to approval by Congress and is likely to be modified by legislators.


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+11 # laborequalswealth 2018-02-13 17:24
How long does a society last when it eats its young?
 
 
+4 # maverita 2018-02-13 20:54
They are doing their very best to destroy everything that might help "the people". Republicans are all about welfare for corporations and tax breaks for the richest of the rich. But we may end up thanking them for turning an entire generation against their GOP.
 
 
+1 # BetaTheta 2018-02-13 23:36
If something is a stupid and destructive move, count on Trump to attempt it.
 
 
+1 # lotuslover 2018-02-14 12:15
All part of MAGA. The text again proving, Morons Are Governing America.
 
 
0 # Robbee 2018-02-14 13:50
if there’s no difference between parties? how come dems never come up with crap like this? how come dems fight for chip, medicaid, medicare, social security, black lives, me too, equal pay, choice, immigrants, marijuana, lgbtq, free college, single payer, family leave, a living minimum wage, EPA. CDC, science, Puerto Rico, free press, free market, free speech, bank regs, clean air & water, no arctic drilling, hike taxes on the rich (3x under barak), justices on scotus who would reverse “citizens united” for bmillionaires, a prez who is not a dickhead, renewable fuel, so forth?

or is that too much to ask here on rsn? whatsa matta? are some differences over matters too small to care?

- we had our last good shot at escaping dickhead in nov. 2016 - AND WHIFFED!

“never hillary!” = “dickhead forever!”

don’t it always seem to go?
that you don’t know what you got till it’s gone? - j. mitchell

“we have seen the enemy! and they are us! - pogo

"Next time, we must resolve to MAKE OUR VOTE COUNT!" - (caps in original) - bernie
 

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