Trump advances with a plan to limit the relief of the PSLF student debt

President Donald Trump’s administration takes the next step towards reorganizing the main forgiveness programs for student housing.

On Thursday, the Ministry of Education announced that it would hold two public hearings to request comments on its plans to refine the public loan delivery program and income -focused reimbursement plans.

This is part of the negotiated regulatory process, a long process of federal agencies must undergo to modify existing regulations. The ministry said that public hearings will be held in person on April 29 and almost May 1.

“Not only will this development of the rules serve as an opportunity to identify and reduce unnecessary administrative formalities, but it will allow the main stakeholders to offer suggestions to rationalize and improve the federal student aid programs,” said the interim under-secretary James Bergeron in a press release.

A document project that the Ministry of Education has published on the Federal Register declared its intention to examine the eligibility for the PSLF, which forgives students’ debt to government workers and non -profit after 10 years. He also declared that he would seek to rationalize the salary as you get a plan, which caps the monthly payments of borrowers at 10% of their discretionary income; And the reimbursement plan of income, which caps the monthly payments of borrowers at 20% of their discretionary income.

Trump signed a decree at the beginning of March aimed at limiting the eligibility for the PSLF, and the announcement of public hearings seems to be the next step in the realization of this order. The Department’s Document Project said public sessions would work on “refining the definitions of an eligible employer to determine eligibility” to the PSLF.

These movements intervene while the Trump administration tries to completely dismantle the Ministry of Education. On March 20, Trump signed a decree to start eliminating the department, following the ministry’s dismissal of more than 1,300 workers just over a week ago.

Although the Trump administration cannot eliminate a federal agency without congresses, it has taken measures to empty the agency and begins to examine the means to transfer some of the capacities of the ministry, such as student loans, to other agencies.

Some student loans in the public service previously declared to Business Insider that they were concerned about the fate of their relief under the modifications proposed by Trump.

“We have sacrificed a large part of our lives, in order to stay in this program, and you cannot simply change the rules as and when,” said a borrower registered with the PSLF.

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