CHARLOTTE — The future of some key federal student loan programs is on the line, according to Matt Schulz, chief consumer finance analyst at LendingTree.
This comes as the Trump administration pushes to slash the education department’s budget by 15% through the “One Big Beautiful Bill Act.”
Last month, the Trump administration restarted collection of federal student loans in default.
Schulz says that could put a dent in the overall economy.
“There’s no question in my mind that there’s going to be a ripple effect in families’ budgets as a result of these student loan payments restarting because most people’s financial wiggle room was pretty tiny anyway,” he said.
If passed, the bill would limit federal student loan repayment plans to just two options. It would also set borrowing limits that would include both undergraduate and professional programs like medical school and slash maximum Pell Grants which are typically used by low-income college students.
In North Carolina, children of veterans could lose a college scholarship because of budget cuts.
The Scholarship for Children of Wartime Veterans offers full rides to students whose parents are living with disabilities, according to the state.
Now, the state will only award the money to students whose parents died or are considered 100% disabled.
Children of partially disabled veterans are no longer eligible.
VIDEO: Student loan collections begin; Social Security, wages could be seized
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