Slashing the education budget for 2021 will probably cancel out the student loan forgiveness program.
Education budget slashed for 2021
The topic of student loan forgiveness has been a big factor for U.S. presidential candidates in their recent campaign strategies. The best proposal in dealing with the surmounting amount of student debts in the country gains the interest of the majority of thee voters.
But, the incumbent President has another say to the issue. Trump plans to slash off the education budget for 2021, which will directly affect the help borrowers are receiving.
Trump named the plan, “A Budget for America’s Future.” It is expected to reduce the education budget for student loan spending by $170 billion. Other affected areas of the budget cut include the following:
- Sensible annual and lifetime loan limits
- Subsidized loans for borrowers currently in school and in an economic struggle
- Reduce the number of repayment options for borrowers
- Stop the public service loan forgiveness program
The Public service loan forgiveness program was signed into law during the Bush administration in 2007. It sanctifies non-profit and goverment employees from paying their federal student loans after a 10-year straight on-time payment scheme. A quarter of American workers are said to be eligible under this program.
Trump is strict when it comes to borrowing government money
According to Mark Kantrowitz, a higher education policy expert:
The Trump administration is known for being an anti-borrower. And this is not yet the end of it.
The proposed budget for the U.S. Department of Education is set at $66.6 billion, reduced by $5.6 billion. This year’s deduction is a bit less at eight percent compared to last year at ten percent.
But the majority of Americans are convinced that the government should make ways to ease things up on borrowers with existing student loans. A poll shows that around 60 percent of registered voters will support a candidate dedicated to neglecting existing student loans.
Both Democratic presidential candidates’ campaign is heavily relying on addressing the concern of wiping out the country’s $1.6 trillion debt in student loans.