• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Mortgages
    • Mortgage Insight
    • FHA Loans
    • Check Rates Now
    • Check Eligibility
  • Home Services
    • Home Security
    • Home Warranty
    • Solar
  • Debt
    • Debt Insights
    • Debt Relief
    • Debt Relief Quiz
  • Personal Loans
    • Find Personal Loans
    • Prequalify for Personal Loans
  • Insurance
    • Insurance Tips
    • Auto Quotes
  • Credit Cards
    • Travel Credit Cards
  • Articles
Wise Money Life

Wise Money Life

Helping Consumers Make Wiser Financial Decisions

Future of the Student Loan Program if It’s Up to President Trump

March 13, 2019 Leave a Comment

President Trump recently released his 2020 budget for the coming physical year. There are a number of financial changes to higher education and, with it, student loans. If you currently are looking at applying for student loans or if you are repaying loans currently you need to stay abreast of the situation so you know what may happen with student loans in the coming years.

White House - USA - President Trump Student Loan Announcement

An End to Public Service Loan Forgiveness

Under the new 2020 budget, President Trump proposes to end the Public Service Loan Forgiveness program. This was a federal program created by then President George W. Bush to forgive federal loans of those who are employed full-time in local, state, or federal positions (after making 120 on-time payments over the course of 10 years).

TRENDING: Homeowners Given Huge Home Warranty Discount in 2023 – Get Your Free Quote in Seconds

This would only effect those who take out a new loan after July 1, 2020.

Federal Student Loan Repayment

President Trump has indicated there are too many individuals repaying loans based on income-driven plans. This, according to the President, causes confusion for students. Instead, President Trump would alter the plan to a single income-based repayment plan.

This would be all undergraduate student loans would be capped at 12.5 percent of income. After 15 years of monthly payments all remaining debt would be forgiven (this is five years sooner than the current plan). Graduate loans would be capped at 12.5 percent and after 30 years of monthly payments all debt would be forgiven (this is five years later than the current plan).

Stop Subsidized Student Loans

With the new budget all subsidized student loans would be eliminated. With these loans the federal government pays the interest on federal loans as long as the student remains in school. This means students who are no longer able to take out subsidized student loans would end up owing more as the interest the federal government had paid would add up over the several years a student remains in school.

Passing Potential

Chances are these changes will not go unchanged (if pass at all). While the president creates a budget Congress needs to pass all appropriate bills. With Democrats now controlling the House of Representatives there will likely be changes within the president’s budget.

If the President’s financial proposal remains, there are a number of potential changes to student loans you may experience. Whatever happens it is important to stay on top of the current budget proposals and how it may or may not affect your loans.

Are you struggling with debt? Find help today!

Get Debt Relief >> Learn More

TRENDING: Homeowners Given Huge Home Warranty Discount in 2023 – Get Your Free Quote in Seconds

Share the insight
1  21

Filed Under: Loans Tagged With: Education, Student Loans

Reader Interactions

Leave a Comment Cancel

sidebar

Blog Sidebar

Popular Articles

Top 10 States with Solar Tax Incentives

Build Your Credit Card Rewards Points Faster with These Cards

5 Wise Money Moves to Make in 2023

5 Ways an FHA Loan Makes It Easier to Buy a Home

Capital One Venture X Rewards Credit Card Review

Mortgage Rates

Check Now

Insurance

Home Insurance
Auto Insurance
Life Insurance
Insurance Articles
Home Insurance Quotes
Auto Insurance Quotes
Life Insurance Quotes

Top Travel Rewards Cards

Check Now

Credit Cards

Credit Card Rewards
Credit Card Fees
Travel Credit Cards
Cash Back Credit Cards
Top Credit Cards Today
Credit Card Articles

Footer

About Us

About Us
Contact Us
Ad Disclosures

Follow Us

Join Our Weekly Newsletter

Name(Required)
State(Required)
Consent
I agree to be contacted by WiseMoneyLife.com via email and agree to the Privacy Policy.
This field is for validation purposes and should be left unchanged.

Copyright © 2023 WiseMoneyLife.com

Privacy Policy and Terms of Use | Privacy Policy Notice - California | Ad Disclosures | Opt-out of Email


Important Disclosures: This site contains affiliate and partner links and may receive compensation for referrals or purchases made through our links. Contents of this website are copyrighted property of the owner of this site. All other trademarks, logos, and service marks (collectively the "Trademarks") displayed are registered and/or unregistered Trademarks of their respective owners.


Additional Disclosures: WiseMoneyLife.com has partnered with CardRatings for our coverage of credit card products. WiseMoneyLife.com and CardRatings may receive a commission from card issuers.