President Trump proposed new changes to student loans as part of his annual budget proposal.
Here’s what you need to know.
The White House released the president’s fiscal 2021 budget. The budget requests $66.6 billion for the U.S. Department of Education, which represents a $5.6 billion, or 7.8%, decrease from the current year. Among the key initiatives for student loans and student loan repayment:
- Undergraduates can get federal student loan forgiveness after 15 years
- Limits annual and lifetime student loan limits for graduate students and parent borrowers
- Eliminates subsidized federal student loans
- Eliminates public service loan forgiveness
- Expands eligibility for Pell Grants, supports borrower defense rule, and provides discretionary funding for Historically Black Colleges and Universities (HBCUs)