Trump-DeVos policies are economy killers
Since taking office, U.S. Education Secretary Betsy DeVos has already threatened to end the Public Service Loan Forgiveness program for people about the enter public service (government or nonprofits), but now her department is allegedly saying it has no intention to honor those already enrolled in the program.
Currently, anybody who works in public service–teachers, law enforcement and government workers–may be eligible to have the remainder of their student loans forgiven after 10 years of on-time qualifying payments. The first group of people to enter this program, approximately half a million, are set to receive their benefits this year. The Department of Education said recently that there has been “no final decision” as to whether or not these people will actually receive these benefits.
What DeVos fails to understand, or even care about, is that major life decisions have been made under the assumption that the government would honor the promise that they made. Lower payment plans which gain more interest were entered into.
More money was borrowed. I personally was set to save $17,000 because of my public service.
To DeVos, that’s pocket change. To the hard-working individuals in public service, that’s a new car. That’s their son’s or daughter’s freshman college tuition. That’s a down payment for a house.
But now, that new car isn’t going to be sold. That high school graduate will forego college and enter the workforce. That family will not build equity, and will be forced to rent.
There will be a trickle-down effect. We are talking millions of individuals that will be affected by this. That’s billions of dollars that will not be put back into the economy. It’ll not only effect the borrower, but that’ll affect the auto worker, the home builder, and a workforce robbed of college-educated individuals.