UNITED STATES
US President, Donald Trump has targeted the Education Department in his 2020 Budget proposal, with a spending cut of 10 per cent.
Also in Mr Trump’s sights is the troubled Public Service Loan Forgiveness Program, which he wants axed.
His Budget plan, A Budget for a Better America, requests US$62 billion (A$87.6 billion) for the Department of Education, or US$7.1 billion (A$10 billion) less than the Agency’s allowance in 2019.
The Budget eliminates subsidised student debt, in which interest doesn’t accrue on the loans while borrowers are in education or in economic hardship.
It also reduces the number of repayment plans for borrowers.
Mr Trump’s plan has the backing of the Secretary of the Department of Education, Betsy DeVos (pictured), who said it reaffirmed the Administration’s commitment to spending taxpayer dollars wisely.
The Public Service Loan Forgiveness Program is eliminated in the proposed Budget.
Signed into law by President George W. Bush in 2007, the program allows not-for-profit and Government employees to have their Federal student loans cancelled after 10 years of on-time payments.
Mr Trump’s plan was slammed by publisher of SavingForCollege.com, Mark Kantrowitz, who said eliminating the program would hurt members of the armed forces, police, firefighters and other first responders.
“It will also reduce the number of people pursuing careers in public interest law, such as public defenders and prosecutors,” Mr Kantrowitz said.
However, Congress must approve the Budget proposals and, now the House of Representatives is controlled by the Democrat Party, Mr Trump will find it hard to realise all his requests.
Washington, DC, 15 March 2019
