On February 12, 2018, President Trump released his Fiscal Year (FY) 2019 Budget proposal. Although the President’s budget proposal is just that, a proposal or blueprint, with most items requiring Congressional action to implement, the policy preferences described or implied therein may impact the broader higher education legislative debate.
Included in the FY 2019 proposal are changes that, if enacted, would negatively impact students or graduates:
- Public Service Loan Forgiveness – eliminate the PSLF program.
- Income-Driven Repayment Plans – create a single income-driven repayment plan.
- New borrowers would pay 12.5 percent of their discretionary income;
- Undergraduate borrowers would be eligible for loan forgiveness after 15 years;
- Graduate and professional borrowers would be eligible for loan forgiveness after 30 years.
AccessLex Institute released a statement opposing the proposals contained in the budget that would adversely impact law students and other graduate and professional students.
Typically, the next step in the process is for the House and Senate budget committees to develop their own budget resolutions. From there, the chambers’ respective appropriations committees will allocate specific funding levels for each federal program. However, Congress has not yet completed FY 2018 spending legislation and is unlikely to undergo a normal budget process this year. Regardless, the deadline for Congress to pass its spending bills for FY 2019 is September 30, 2018.