Trump 2021 Budget Proposes Borrowing Limits, FSA Oversight, Significant Cuts to Student Aid – NASFAA
In his fiscal year (FY) 2021 budget proposal, which would impact award year 2021-22, President Donald Trump offered a slew of new policy proposals aimed at setting loan limits for students and parents and restructuring the Office of Federal Student Aid (FSA), alongside significant cuts to federal student aid programs — part of an overall $5.6 billion cut to the Department of Education (ED).
Among other things, the proposal — “A Budget for America’s Future” — recommends regular loan counseling, consolidating income-driven repayment plans, and continued support for expanding Pell Grants to more learners. The budget also included deep cuts to student aid programs that have been part of past years’ proposals — eliminating the Public Service Loan Forgiveness (PSLF) and Federal Supplemental Educational Opportunity Grant (FSEOG) programs, cutting in half funding for the Federal Work-Study (FWS) program, and eliminating subsidized federal student loans.
“The spending cuts in the president’s proposed budget would devastate student access and success in postsecondary education, and should continue to be rejected outright by Congress, as has been done in previous years,” said NASFAA President Justin Draeger. “But this year’s budget also puts forth several ideas worthy of further consideration, such as giving financial aid administrators the authority to limit student loans in certain circumstances, allowing incarcerated individuals the opportunity to receive federal aid to pursue higher education, and bringing much-needed oversight to [FSA].