Trump’s proposed education budget cuts funding, demands debt collection
March 20, 2017
President Trump’s new budget proposal for 2018, released Thursday, includes rollbacks for higher education-related funding.
The proposal, while it keeps the Pell Grant program, reduces funding for that program by $3.9 billion. In the 2015-16 academic year, Pell grant spending amounted to $28.2 billion, the largest expense of the U.S. Department of Education.
Work study/Pell Grants afforded me the privilege to attend college, as I know they did for many. https://t.co/1wxOCymFpc
— Elizabeth Hernandez (@ehernandez) March 16, 2017
Pell grants, unlike student loans, do not have to be repaid, and they provide low-income students up to $5,920 for education expenses. At schools like New Mexico State University and Texas A&M, 80 percent or more of the student body received Pell grants in the 2014-15 academic year.
Another budget cut would eliminate the Federal Family Education Loan Program, which prohibits debt agencies from charging more than 16 percent of personal and accrued interest. However, only a relatively few number of borrowers will be impacted, as the FFELP discontinued new loans in 2010.
Read the full reports by USA Today College and The Atlantic.