Donald Trump signs executive orders concerning higher education institutions, as well as US Education Minister Linda McMahon.
(Saul forehead / geti)
While Americans strengthen their straps to cope with the economic consequences of the current administration’s policy, Congress is going to aggravate everything through a process called “reconciliation”. “So we are at a time when the college price is already too high for millions of students,” said Senator Elizabeth Warren. “Donald Trump and his republican buddies in Congress do not reduce them. They add an average of $ 400 a month to family expenses.”
Reconciliation is a budget process that allocates money in the current budget bill, allowing Congress to decide which programs will fund and what programs will be reduced. During the current reconciliation cycle, the republican leadership presented its “big, beautiful bill”, which includes serious referrals to decisive programs such as Medicaid, public broadcasting, Snap advantage, cancer research, student loans and education.
What does this mean for Americans with student debt? Thanks to the budget cuts, Congress plans to pull $ 350 billion from the Education Department, which eliminates the plans such as the repayment of the contingent and the payment that you earn, allowing hard -working families to provide more affordable payment plans, simultaneously restricting the requirements for programs such as public loan programs. These payment programs allow the student loan borrowers to stay up to date with their accounts and avoid hitting the default.
These cuts will hurt millions of Americans because a typical borrower with a college degree sees as their payments on student loans More than 2928 dollars per year. These include teachers, nurses, veterans, first defendants, our neighbors, family members and many others. For many Americans, this is an increase that they cannot afford. “If my payments were withdrawn from revenue payments, it can mean a difference between the ability to afford a reliable vehicle, pay a mortgage, utilities and put food on the table for my children. I do not relate to Snap and both my husband and wife, and I have a college degree,” one borrower told us.
To replace the eliminated repayment plans, Congress suggested a “payment plan” that seizes the borrowers throughout the maturity. The borrowers who enrolled in the REP will not be able to change from the plan, and this removes the possibility of a monthly payment with zero dollars, including for those who unemployed, bring no income and earn a certain amount. “When I fell into difficult times, such as a loss or illness, and I had no profit, I barely made the end,” said Lizzi, a borrower with Illinois. “I was lucky that there were repayment programs caused by income, but the accrued interest has just worse my financial trouble.”
The rap is generally more expensive than any of the existing repayment plans, and only will lead to further financial stress on the Americans. The REP will not only affect the millions of current borrowers in repayment; It will also adversely affect the graduates of new colleges who are going to get into repayment in a very uncertain labor market.
Current Issue
The proposed budget reduction does not end there. For students still in college, the federal government has reduced the Pell Grant Prize. These federal financial assistance grants are designed to help the most vulnerable students who make the profits, but they will be most harmful as a result of this reconciliation process. Graduate students are also not safe. Severe reductions in federal research are already affecting academic sciences across the country. The Federal Government also considers the possibility of limiting $ 200,000 borrowing federal student loans for both students and postgraduate coupled, depriving countless higher education students.
What will happen if the bill will pass? Speaking straight away, private lending will be boom, millions of Americans with student debt fall into default, more people and families will face economic difficulties, colleges and universities will be underfined, and students who dream of a college degree will lose higher education. “When student loans are increasing, I am worried about affording all our accounts, including our mortgage,” Elena said, Michigan’s borrower. “We work so much to stay ahead of the debt, but life throws curves, and you feel that we always live salaries.”
However, there is still hope. The reconciliation bill has not been adopted, and there is still time to make sure it does not go through the process to become a law. Our representatives were recognized by the American people and is intended to serve the communities they represent. It’s time to make sure that they vote for bills and legislation that benefit and protect their hard -working voters.
