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Proposed new Department of Education Budget

Started by WendyBird, June 08, 2017, 06:03:04 pm

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WendyBird

Hello.  My daughter graduated college with a whopping student loan debt of $136,000.  She works in the public sector, so signed up for the Public Service Loan Forgiveness Plan and has been in this plan for 6 years.  The education budget proposed by the Trump administration eliminates this plan.  How will this impact her?
Thank you.

TheCollegeInvestor

It likely won't for a few reasons:
1. It's still just a proposal
2. Even more so, it's a budget proposal which talks about funding. He can defund the money to forgive the loans, but the loan forgiveness program is a separate law - and that opens up a whole lot of legal questions
3. After getting a bunch of flack for it, they ammended it to only impact new borrowers after 2017 - so your daughter is likely grandfathered in

** However, I still recommend you contact your Senator and Representative and share concerns you might have.