If you work for the government or a nonprofit and have been panicking about the Trump administration’s proposed budget cuts that include elimination of the Public Service Loan Forgiveness Program, this should come as a relief.
The White House released the president’s official budget proposal on Tuesday, and while it calls for cutting the program, the plan wouldn’t jeopardize those already enrolled in the program.
Only those who take out loans on or after July 1, 2018, or those who take out loans to complete their current studies, would be affected by the program’s elimination as proposed by President Trump.
The elimination of public service loan forgiveness and other cuts President Trump proposes are far from a sure thing because. They still must pass Congress, which typically makes makes huge revisions to presidential budgets.
Who is Affected by the Public Service Loan Forgiveness Program Cut?
The Bush administration established the Public Service Loan Forgiveness Program in 2007 to encourage college grads to seek jobs in the public and nonprofit sectors by forgiving their student loan debt after 10 years of service.
Last week, The Penny Hoarder described the uncertainty many borrowers faced when a draft of the Trump administration’s budget proposal called for eliminating the program.
At least 552,931 borrowers participate in the program. As we wrote about, some borrowers worried that none of their loans would be forgiven, and others commented on how it could ruin their plans to start a family or retire.
Although the program’s future is unclear, if you’re currently on track for public loan forgiveness, you can rest a little easier knowing your devotion to public service probably hasn’t been for naught.
Kelly Smith is a junior writer and engagement specialist at The Penny Hoarder. Catch her on Twitter at @keywordkelly.
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