Student loan forgiveness at risk of ending - WGEM.com: Quincy News, Weather, Sports, and Radio

Student loan forgiveness at risk of ending

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Subsidized student loans may soon be a thing of the past. Subsidized student loans may soon be a thing of the past.
Glick said she uses subsidized loans. Glick said she uses subsidized loans.
Baumgardner said ending the loans would affect many students. Baumgardner said ending the loans would affect many students.
The federal proposal seeks an end to subsidized student loans. The federal proposal seeks an end to subsidized student loans.
Subsidized loans also offer a grace period before repayment is required. Subsidized loans also offer a grace period before repayment is required.
HANNIBAL, Mo. (WGEM) -

Paying for your child's education could become even tougher under a new federal proposal, that would eliminate subsidized loans, and student loan forgiveness.

Caitlin Glick is a freshman at Hannibal-LaGrange University. She said student loans are helping her afford a college education. 

"With these loans it has helped." Glick said. "It has taken a lift off of my Mom's shoulders and my shoulders which is super nice. It makes it a little bit easier to not have to focus on the money, and I can focus on my school work more."

However, with his new federal budget plan unveiled, President Donald Trump is proposing an end to subsidized student loans.

"The subsidized loan's interest is paid for by the government while the student is in school." HLGU Financial Aid Director Brice Baumgardner said. "Once the student graduates, then there's a grace period before repayment begins."

Baumgardner added that if subsidized student loans are done away with, students could find themselves in a tough situation.
 
"It could have a pretty significant impact." Baumgardner said. "There are some who are projecting as much as $200 billion over the next ten years in additional loan volume just from the interest that's going to be created."

That could leave students like Glick pondering their futures.
 
"How am I going to be able to cover all of the costs for me to come back to college next year?" Glick asked. "I have subsidized and unsubsidized loans."

Baumgardner also said now that tax reform has taken place, there's going to be a back and forth at the federal level about what programs to keep in place.

University officials plan on keeping a close eye on the impact to higher education, but they don't expect it to be a quick process.

You can view President Trump's proposal below.

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