The White House released Trump's 2020 budget proposal, which contains important implications for higher education and student loans. The budget includes $64.0 billion in funding for the U.S. Department of Education, a $7.1 billion, or 10%, decrease compared to the 2019 funding. The budget, as it relates to student loans, is built on several stated goals, among others:
Before 2010, private lenders made most student loans. But during the financial crisis student lending seized up, and in response Congress effectively nationalized the program. Today, the federal Department of Education makes about 90 percent of all student loans (including loans to parents and graduate students). The old system included big government subsidies to private lenders. Congress and the Obama administration directed that money to income-driven repayment and Pell Grants instead.
Donald Trump is promising the most liberal student loan repayment plan since the inception of the federal financial aid program, in a clear effort to court the millions of Americans struggling with the high cost of college.
Right wing media criticizing the Hillary Clinton budget claiming that her policies on expanding government role in family leave and student loans would contribute significantly to the deficit. This report is a clear example of how media plants false hoods without any specifics.