Ends a student loan forgiveness plan as many have been in it for years.
https://www.cnbc.com/2018/02/12/trumps-budget-would-end-student-loan-forgiveness-program.html
Way to lay the screws to the American family and make it harder for them to buy a home, have children, etc. This should be great for the economy as millions are stuck in debts that they have no hope of paying off.
We have discussed this in the past...but why should someone who borrowed money not pay it back? Why is a student loan a special circumstance? Meanwhile, these are small changes...did you read the article? It only apply s to borrowing after 2019.
The proposal unveiled Monday would sharply curtail income-based loan repayment plans, scratch the Public Service Loan Forgiveness Program, embolden the government to go after students who don't pay their loans and cut funding for federal work study in half.
Changes to loans would apply to borrowing after July 1, 2019, not including those loans provided to borrowers to finish their current education.
The budget would eliminate subsidized loans. Some 5.7 million students had subsidized loans in the 2016-2017 academic year, according to Mark Kantrowitz, a student loan expert.
The budget plan also would narrow the number of income-driven repayment plans — in which people pay back their loans at a rate that takes into consideration their income — from four to just one. Under that option, students' monthly payments would be capped at 12.5 percent. Students generally pay 10 percent of their discretionary income under current income-based repayment plans.
Trump's infrastructure and budget plan 'science fiction': Axios editor 8:19 AM ET Mon, 12 Feb 2018 | 03:04
However, undergraduate students would have their loans forgiven after 15 years, compared with 20 years now. So they'd be paying more per month, but less overall. Graduate students, meanwhile, would not have their loans forgiven for 30 years.
