Breaking down the President's proposed budget: how it impacts local students
5/23/2017
WZAW Fox Wausau

​By Stephanie Buffamonte

What is President Donald Trump's proposed budget 
President Donald Trump's $4.1 trillion spending plan looks to balance the budget in 10 years. In order to do that, programs including medicaid, food stamps and social security disability insurance would have funding cut. However, Budget Director Mick Mulvaney said Tuesday people who really need these programs wouldn't be kicked off.

Another big shift in the budget: eliminating subsidized student loans and loan forgiveness programs.

Democrats are criticizing the plan Tuesday. Former Education Secretary John King calls the budget, "an assault on the American dream."

What is a subsidized loan 
A subsidized federal loan is a low interest loan from the Department of Education. When a student is enrolled in school, the government pays interest for that student. The Associate Director of the University of Stevens Point said about 48% of their students use this type of loan at the school, borrowing 16M in the last year.

Reaction from both sides 
"They're [students are] not going to be pleased if they're concerned about their loan debts the way it is now," Associate Director of UWSP's Financial Office Carol Scipior said. "They're going to be more interest to pay back later."

The average UWSP student has about $30,000 in student loan debt, the national average is $35,000. President Trump's proposal suggests cutting subsidized student loans. By doing this, the administration seeks to save just over $1 billion.

"It's unfortunate with this subsidized [loan], if that would be lost that would create a greater hardship for them," Scipior said.

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