By: Jason Silverstein | CBS News
March 12, 2019
President Trump's 2020 budget proposal calls for eliminating a loan forgiveness program for public employees, and advocates other changes that could cost struggling students more.
The budget blueprint released by the White House on Monday says "streamlining and improving student loan repayment" is a priority, but includes proposals cutting several current programs and initiatives. That includes an elimination of the Public Service Loan Forgiveness program, which was created under President George W. Bush in 2007. The program forgives student loans for workers in the government and some nonprofits after they make payments for 10 years.
Under Mr. Trump's proposal, the program would no longer apply to new student loans taken out after July 1, 2020, which the White House projects would save about $53 billion over nine years.
The president's budget also suggests for additional education cuts, including:
The budget also asks Congress to expand Pell grants to cover short-term career-training programs. And it calls for creating a system where taxpayer-funded schools would "have skin in the game through a student loan risk-sharing program." The budget says the Trump administration would work with Congress to address those issues.
The education cuts require approval from Congress, and are unlikely to pass in a Democrat-controlled House.