The White House budget proposal expected next week includes major changes to federal financial aid programs, according to details reported Wednesday by The Washington Post.
The newspaper obtained documents it said were described as a “near-final” version of the forthcoming budget by a Department of Education employee. The Trump administration’s proposal calls for cutting $700 million in Perkins Loans and makes unspecified cuts to subsidized loans, possibly ending interest subsidies for new borrowers. It would also cut the Federal Work-Study program by $490 million — almost half — and eliminate the Public Service Loan Forgiveness Program entirely. One source with knowledge of the PSLF proposal said it would grandfather in current borrowers.