President Trump releases 2021 budget to cut student loan forgiveness programs
President Donald J. Trump released a budget for 2021 on Monday, which would cut many programs that aim to help student loan borrowers, according to an article on CNBC.
Trump’s plan, “A Budget for America’s Future,” will cut student loan spending by approximately $170 billion, according to the article. Under this plan, reductions will include “sensible annual and lifetime loan limits” for graduate students and parents, according to the budget.
It will also end subsidized loans, which are loans where the federal government covers the interest for student loan borrowers who are still attending school or may be experiencing financial hardship, according to the budget.
The number of repayment options available to borrowers would also be reduced, as well as getting rid of the public service loan forgiveness program, according to the budget.
The public service loan forgiveness program was signed by former President George W. Bush in 2007, according to the article. It allows not-for-profit and government employees to have their federal student loans canceled if they make on-time payments for 10 years.
“The Trump Administration already has a reputation of being anti-borrower,” said Mark Kantrowitz, a higher education policy expert, according to the article. “This just takes it further.”
This proposed budget would request $66.6 billion for the U.S. Department of Education, cutting the previous budget by approximately eight percent, according to the article.
Eighty percent of Americans said the government should be making it easier for people with student loan debt to repay their loans, according to a study by The Pew Charitable Trusts. Approximately 60 percent of registered voters said they would support a plan to cancel existing student loan debt, according to another poll.
Sen. Bernie Sanders (D-Vt.) has previously proposed canceling the country’s $1.6 trillion student loan debt, according to the article.
Sen. Elizabeth Warren (D-Mass.) announced a plan to cancel $50,000 in debt for student loan borrowers with incomes of less than $100,000, according to the article. Borrowers with incomes between $100,000 and $250,000 would be eligible for loan forgiveness on a scale.
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