In Donald Trump's latest budget, aid for lower-income students and programs that offer relief to workers in public service are on the chopping block.The $4.89 trillion plan, presented to Congress on Monday, would cut the Education Department's budget by $5.6 billion, eking out savings by ending some grants, freezing the maximum amount of others and shifting some payments from the government to borrowers.A couple of proposals could help those struggling to repay their loans. The spending plan was criticized by Democrats who control the House and has little chance of going into effect when the new fiscal year starts in October."Most of these changes we have seen the Trump administration propose over the last four years,'' says Antoinette Flores, director of post-secondary education for the Center for American Progress. "But we've also seen ... both the House and the Senate overwhelmingly reject these ideas. So the reality of this actually happening is slim.''If the plan was approved, borrowers could be burdened with billions of dollars more in debt payments. Scrapping student loan forgiveness? The Trump administration proposes scrapping a program that forgives the remaining student debt of teachers, firefighters and others in public service who have made on-time loan payments for 10 years.Trump and Social Security:Everything you need to knowThe tax credit you need:Millions of Americans miss out on Earned Income Tax Credit"Ultimately, it means a higher debt burden,'' Flores says, resulting in $52 billion in additional payments for borrowers over a decade.The possibility of the program being eliminated worries Kelsey Hubbard, 26, an English teacher in Russellville, Arkansas. She looks at the program as a financial lifeline. “I am already budgeting every single penny I make as a teacher, so … not having to make that payment would be amazing,” says Hubbard, who has roughly $35,000 in student loans. “That’s groceries. That’s gas.”Hubbard learned about the program when she was in graduate school and continued to hear about it from colleagues once she started teaching.“It’s very commonly talked about and used,” she says. “We do not get paid a lot, but you have this security blanket after 10 years. It would take the burden off.”No more subsidized Stafford Loans? The federal government pays the interest on certain government loans, called Stafford loans, while the student borrowers are in school.Trump's budget would get rid of that subsidy, adding several hundred dollars to what a student must pay back. It would amount to $18 billion in additional costs for borrowers over a decade."There's no question that students ... would owe more when they graduate from college,'' says Sandy Baum, senior fellow in the center for education, data and policy at the Urban Institute. It's doubtful that the loss of the subsidy will become a deal-breaker for people wanting to go to college."if you asked a student, most of them have no idea whether their loans are subsidized
Which student loan programs would vanish if Trump's proposed budget goes through?
In Donald Trump's latest budget, aid for lower-income students and programs that offer relief to workers in public service are on the chopping block.The $4.89 trillion plan, presented to Congress on Monday, would cut the Education Department's budget by $5.6 billion, eking out savings by ending some grants, freezing the maximum amount of others and shifting some payments from the government to borrowers.A couple of proposals could help those struggling to repay their loans. The spending plan was criticized by Democrats who control the House and has little chance of going into effect when the new fiscal year starts in October."Most of these changes we have seen the Trump administration propose over the last four years,'' says Antoinette Flores, director of post-secondary education for the Center for American Progress. "But we've also seen ... both the House and the Senate overwhelmingly reject these ideas. So the reality of this actually happening is slim.''If the plan was approved, borrowers could be burdened with billions of dollars more in debt payments. Scrapping student loan forgiveness? The Trump administration proposes scrapping a program that forgives the remaining student debt of teachers, firefighters and others in public service who have made on-time loan payments for 10 years.Trump and Social Security:Everything you need to knowThe tax credit you need:Millions of Americans miss out on Earned Income Tax Credit"Ultimately, it means a higher debt burden,'' Flores says, resulting in $52 billion in additional payments for borrowers over a decade.The possibility of the program being eliminated worries Kelsey Hubbard, 26, an English teacher in Russellville, Arkansas. She looks at the program as a financial lifeline. “I am already budgeting every single penny I make as a teacher, so … not having to make that payment would be amazing,” says Hubbard, who has roughly $35,000 in student loans. “That’s groceries. That’s gas.”Hubbard learned about the program when she was in graduate school and continued to hear about it from colleagues once she started teaching.“It’s very commonly talked about and used,” she says. “We do not get paid a lot, but you have this security blanket after 10 years. It would take the burden off.”No more subsidized Stafford Loans? The federal government pays the interest on certain government loans, called Stafford loans, while the student borrowers are in school.Trump's budget would get rid of that subsidy, adding several hundred dollars to what a student must pay back. It would amount to $18 billion in additional costs for borrowers over a decade."There's no question that students ... would owe more when they graduate from college,'' says Sandy Baum, senior fellow in the center for education, data and policy at the Urban Institute. It's doubtful that the loss of the subsidy will become a deal-breaker for people wanting to go to college."if you asked a student, most of them have no idea whether their loans are subsidized
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