While the Republicans in Congress are looking for means to reduce spending, some legislators float new taxes on university scholarships, the end of student reimbursement plans and a sharp increase in taxes on university provisions.
Ideas affecting higher education are among the many circulation among the committees of the Chamber which explore the means to cover the cost of Extension and increase in tax reductions succeeded in President Donald Trump’s first term.
The recommendations are still evolving, and we do not know how close one of them will be. In any case, the defenders of higher education say that they are alarmed to see such proposals gaining ground with the Republicans.
“It is shocking for me because this quantity of cuts does not occur in reaction to a budgetary crisis, as a recession. It seems really different in the sense that it is not something of which there is an external push or a need. So this seems more ideological in a way, “said Jessica Thompson, an expert in higher education policy at the Institute for University Access and Success.
Here is an overview of any federal budget cuts which would affect higher education within the framework of the Trump administration:
Cut programs that help students repay university debt
The American Education and Workhop Committee have suggested several possible ways to revise student loan programs. Some would reduce students’ access to federal aid for college.
On the cutting block, there are potentially several plans that students can choose to reimburse their students’ loans, including Backup plan Introduced by Biden administration. This plan does not require borrowers to make payments if they earn less than 225% of the federal poverty line – $ 32,800 per year for one person – and prevent interest from adding to the sales as long as the borrowers carry out their monthly payments. The backup plan was already put on hold After the Republicans disputed it. Some plans do not seem to be targeted, including the one that caps loan payments according to the income level of borrowers.
Another possible change would give borrowers additional opportunities to recover fault defects. Although they can currently rehabilitate their loans once, allowing them to make a number of consecutive payments to get out of default, the proposal would allow them to go through this process twice. The Committee has planned that the new process could save the millions of dollars from the government but did not explain how.
The timing is uncertain at the moment when one of these proposals could surface. They could be taken into account from this spring in a process known as budget reconciliation which would allow the Republicans to repress proposals by the congress only on the online votes of the parties. It would not be easy in the chamber, where the Republicans hold the majority by a few seats.
The end of the tax status for scholarships
The scholarships and scholarships have been exempt from tax as long as they are used for tuition fees and related expenses. This would change under another proposal to consider.
Changes could create new financial burdens for students and families, according to defenders.
“There has been great progress in reducing higher education costs. Adjusted for inflation, public school fees of public university are less than it was ten years ago, “said Craig Lindwarm, Vice-President Director of Government Affairs of the Association of Public Universities and land concessional. “But by examining some of the proposals that are options, many would increase the costs of students and families, and I think that (the proposals) are directed in the direction that most do not want to see, which increases the expenditure of the students and families. “”
Increased taxes on college allocations
The law on tax reductions and jobs currently requires certain non -profit colleges and universities to pay a tax of 1.4% on the income of their endowments, which raised approximately 244 million dollars from the 58 Institutions in 2022. The Committee suggests increasing this to a tax and an expansion of 14% which, which extends which, the colleges should pay it.
Fines for colleges and universities which violate the rights of students under title VI of the Civil Rights Act, which protect against discrimination under shared ancestry students, are also considered to be considered among hundreds of ‘Other traffic ideas. Such surveys have often been Solved through the colonies Call for training and policies updates. Title VI is currently what is used Investigate the complaints of anti -Semitism On university campuses across the United States
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Mumphrey reported to Phoenix. Education writer AP Collin Binkley in Washington, DC, contributed to this report.
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