The Trump administration released a budget blueprint yesterday, outlining how it wants Congress to address government spending. The proposal calls for sweeping changes to student loan programs – reforms that would have a major national impact. Here are some specifics:
- Public Service Loan Forgiveness (PSLF) would be eliminated.
- Current Income-Driven Repayment (IDR) programs like Income Based Repayment (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE) would be eliminated, and a new IDR plan would take its place. This plan would have payment amounts somewhere between PAYE/REPAYE and IBR, with a shorter repayment term (15 years) for undergrads and a longer term (30 years) for grad students.
- Subsidized federal loans would be eliminated, meaning all federal loans would accrue interest at all times, even during periods of in-school deferments.