Betsy DeVos’ proposed budget for the Department of Education (DE) confirms the worst fears of graduates hoping for promised loan forgiveness.
During the George W. Bush administration, a bill was passed that promised students who entered less lucrative non-profit or public sector careers would eventually have their student loans forgiven if they worked in those jobs for at least ten years. This program was known as the Public Service Loan Forgiveness Program. The first crop of graduates who signed up for the Bush-approved program are due to have their loans forgiven this year. However, that promise may be broken if the DE budget outline is approved by Congress.
As the Washington Post reported, the Trump/Devos budget aims to slash more than $10 billion from the agency’s $69 billion budget, which would result in a large number of DepEd’s programs being severely cut or eliminated entirely. One of those programs is the 10-year loan forgiveness program, which approximately 550,000 graduates are counting on.