Trump is trying to shut down the popular student loan forgiveness program that would as part of cuts in the U.S. Education Department's funding.
Donald Trump is at it once again. Fresh off of being acquitted from his impeachment trial, he's back in the Oval Office pulling some pretty egregious moves. According to Forbes, the president shared his annual budget calls including $5.6B cut in funds for the U.S. Education Department. The student forgiveness loan program, for one, is next to get snipped if Trump's bill passes in Congress. The program was first introduced under the Bush Jr. administration in 2007 allowing federal loan forgiveness for full-time employed borrowers federal, state or local public service job or 501(c)(3) nonprofit job. Those who were eligible would have had to make 120 payments on-time over 10 years.
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Trump's proposal, along with Education Secretary Betsy DeVos argued that they wanted to find a fiscal balance between the borrowers and taxpayers. They said that this is a way for them to save money from actually forgiving loans. Instead, they claim that their new plan will help students get off of their loans at a quicker rate. Trump and DeVos believe that the new federal repayment plan can let borrowers lower their payment plans, despite the fact they won't lower interest rates.
Repayment plans will be based on income and would allow forgiveness for federal student loans after 15 years for undergraduates in comparison for the current 20 years under the current plans that exist.