400000 were promised student loan forgiveness. Now they are panicking

President Trump and Education Secretary Betsy De Vos attend a White House meeting with parents and teachers in February

President Trump and Education Secretary Betsy De Vos attend a White House meeting with parents and teachers in February

The department's spokeswoman Liz Hill told the Washington Post that the budget numbers were "preliminary" until officially released next week.

A request for comment from the Education Department was not immediately returned.

A president's spending proposal has to go through Congress before becoming a budget, so it's possible these cuts will be tweaked or removed from the final version altogether.

In an op-ed published on the Wall Street Journal website around the same time as the call, Education Secretary Betsy DeVos wrote that the servicing requirements put in place by Obama's administration created a "chaotic system" that generated numerous consumer complaints and was not sustainable.

"With zero competition, we are concerned about a "too big to fail" student loan company that has zero incentive to work for students, borrowers, and their families", she said. A graduate student who took out a direct loan for $20,000 this past school year would have to shell out a total of $25,821 to pay back the debt in 10 years. Since over one quarter of Americans qualify for public service loan forgiveness, you should fill out the Public Service Loan Forgiveness Employer Certification form if you have any inkling you might qualify. With the single platform, the hope is that the repayment process is more consistent for borrowers. At this point it's unclear if the Trump Administration could affect the program for those who are already enrolled or if it would only shut down the program moving forward.

Some borrowers claim that in recent years they have received notice from FedLoan, the company charged with determining if an individuals work qualifies for the program, that despite being previous qualified for the forgiveness program that they were no longer eligible to have their loans forgiven. Trump's budget would streamline those five plans into one and change the payment details. The Trump administration would increase available funds for year-round Pell by $16.3 billion over 10 years. But it can also extend your repayment term, causing you to pay back more in interest fees. Anyone with graduate loans would expect to pay the same percentage of their income, but would only receive forgiveness after 30 years.

Michigan Senators Gary Peters and Debbie Stabenow joined their colleagues in introducing the Bank on Students Emergency Loan Refinancing Act, which would allow those with outstanding student loan debt to refinance at the lower interest rates offered to new federal borrowers in the 2016-2017 school year.

"I am committed to helping students meet their repayment obligations and reaching their academic goals while also making government more effective and efficient". Trump's budget proposal would cut that almost in half, with a $490 million reduction to the Federal Work Study program. That would apply if the loans were taken out for an undergraduate degree. Her legislation to reinstate year-round Pell Grants for college students in MI and across the country was recently signed into law as part of the government spending bill. If you're even going to talk about fixing the budget, maybe try balancing it on the back of hedge funders first before sticking it to public defenders.

The new rates track closely with projections from the Congressional Budget Office, which anticipated rates to top 6 percent on undergraduate loans, 7.5 percent on graduate loans and 8.5 percent on PLUS loans by 2018. There isn't a penalty for paying off student loans early, whether private or federal. This bill will help ease the burden of student debt by finally allowing undergraduate borrowers to refinance their loans and take advantage of today's new lower rates.

"Evidence has shown that because the program is so heavily subsidizing student loans it has led to tuition inflation", said Mary Clare Reim, a policy analyst in the Center for Education at the Heritage Foundation, a conservative think tank.