Trump Student Loan Forgiveness Proposals
There have been a lot of proposals that people have been concerned about with the Trump administration. It’s important to note that none of these proposals are the law, but that doesn’t mean they aren’t changes the President wants to see.
Whether you’re for or against these changes, you need to know what they are and what they could mean. Then you should voice your concerns to your representative in Congress.
Elimination Of Public Service Loan Forgiveness (PSLF)
President Trump, along with Betsy DeVos, have called for the elimination of Public Service Loan Forgiveness (PSLF) on several occasions. PSLF is one of the top ways to get student loan forgiveness in the United States.
In his first budget proposal for 2018, he attempted to defund PSLF. This raised a series of legal questions (because whether there is money or not, it’s still the law, so what would the Department of Education do), and eventually the proposal was dropped.
However, in his next budget for 2019, Trump has once again proposed eliminating Public Service Loan Forgiveness.
It’s important to note that the proposed changes would apply to new loans after July 1, 2019. So, it currently appears that those with existing loans would be grandfathered in.
Changes to loans would apply to borrowing after July 1, 2019, not including those loans provided to borrowers to finish their current education.
Elimination Of Subsidized Student Loans
Trump has also proposed the elimination of subsidized student loans in his 2019 budget proposal. Subsidized student loans provide student loan borrowers with significant assistance – with the government paying for interest accrued during school. This can result in significant savings for borrowers.
The government issued 5.7 million subsidized student loans in the 2016-2017 school year. These loans go towards students with a financial need, based on filling out the FAFSA.