Trump introducing changes to how you pay back Student Loans | Jason Spencer

A considerable percentage of students like Jason Spencer in United States tend to obtain student loans in order to cover up the financial expenses associated with their studies. However, President Trump has made plans to change the way how students pay back the student loans. As per these changes, low income students will have to pay more in order to borrow money and graduate students will have to spend a longer time period in order to repay the debts. Moreover, the public servants of the country would lose out on the loan forgiveness unless they work with a company like Student Loan Relief in Dallas Texas.

A budget proposal mentioning all these changes has been released by the White House. In general, this proposal makes college education less affordable for the students in United States. As a result, low income students like Jason Spencer was, will have to experience a lot of hardships in the future. In fact, $9.2 billion funds from the money allocated to the Department’s budget has been cut down.

The subsidized student loan program has been slashed
According to the budget, a subsidized loan program, which was available for the low income students, has been slashed. According to this plan, the government had to pay the interest while students are studying at college and up to a period of six months after they leave. In addition, the borrowers of this loan were provided with the flexibility to choose a repayment plan according to their level of income.

Changes introduced to the repayment programs
Students who borrow money to cover up their college expenses paid back the amount in many different ways. However, Trump has introduced some significant changes to all those repayment programs. Out of these repayment programs, the most generous one helped the borrowers to pay back the amount as a 10% of the discretionary income for a period of 20 years. If there was a remainder after a period of 20 years, it was forgiven. This would be changed by the new changes introduced by the Trump administration. The students will be asked to make a monthly payment of 12.5% of their income and it has been limited for a period of 15 years. For the graduate students, a repayment period of 30 years would be provided.

Public service loan forgiveness has been removed
According to the budget, public service student loan forgiveness has also been removed. This has created tension among public defenders, social workers, teachers and borrower advocates who live within the country.

Work study funding has also been slashed
Last but not least, the Trump administration has slashed work study funding as well. The new budget consists of a proposal along with bipartisan support, which would assist the students to use Pell grant. Pell grant refers to the money that is provided by government for the students with a low income in order to cover up college expenses. This is provided throughout the year. However, it is not enough to satisfy the crisis that has been created from the new budget. 

Leave a Reply

Your email address will not be published. Required fields are marked *