President Trump recently proposed a budget that will cut educational funding by 10 percent. The title of the budget is “A Budget for a Better America.” The Administration requested $62 billion for educational funding. This is $7 billion less than what it is currently.
Subsized student loan debt will be eliminated under this plan. This prevented people from accumulating interest while they were experiencing an economic hardship or in school. It will also eliminate the Public Service Loan Forgiveness Program.
Betsy Devos is the U.S. Secretary of Education. She stated that they wanted to make a commitment to spend taxpayer dollars effectively. The plan will also reduce the number of income-driven repayment plans to one. Furthermore, the maximum amount that a person can pay per month to 12.5 percent of their income. The current maximum is 10 percent.
The Federal Work-Study Program, which allows students to work a part-time job to pay for their education, will be cut under this proposal. The Pell Grant will also be cut.
James Kvaal is the President of The Institute for College Access & Success. He disagrees with the proposed budget cuts. He stated that college is crucial for the success of many, so this proposal will move things in the opposite direction.
The Public Service Loan Forgiveness was put in place by President George W. Bush in 2007. It allowed people who worked for a non-profit organization to get their student loan debt cancelled after 10 years. Twenty-five percent of workers qualify for Public Service Loan Forgiveness.
Mark Kantrowitz works for SavingforCollege.com. He stated that this proposal will hurt police officers, emergency medical technicians and people who are in the military. He said that fewer people will work in the public sector if the funding is cut.
Congress has rejected previous educational cuts. People are predicting that this proposal will also be rejected.