Even though we receive a leaked preview of President Trump’s Budget Proposal and the proposed changes to PSLF, we were missing this key provision see in the actual text of the proposal, which was released today May 23, 2017:
“All student loan proposals apply to loans originated on or after July 1, 2018, except those provided to borrowers to finish their current course of study” (see page 20).
So, any possible elimination to PSLF would apply prospectively to future borrowers, not retroactively to current or past borrowers.
- “The Budget proposes to streamline student loan repayment by consolidating multiple IDR plans into a single plan.”
- “The single IDR plan would cap a borrower’s monthly payment at 12.5 percent of discretionary income.”
- “For undergraduate borrowers, any balance remaining after 15 years of repayment would be forgiven.”
- “For borrowers with any graduate debt, any balance remaining after 30 years of repayment would be forgiven.”
It appears President Trump is focusing relief for undergrads, as opposed to graduate students. President Trump’s budget claims that “[t]hese reforms will reduce inefficiencies in the student loan program and focus assistance on needy undergraduate student borrowers instead of high-income, high-balance graduate borrowers” (page 20 of budget proposal).
We will keep you posted on any updates.