Student loan borrowers face abrupt 180 as GOP budget plans threaten to raise payments [View all]
Source: The Hill
02/25/25 6:00 AM ET
Student loan borrowers could see their payments increase under budget plans currently under discussion by House Republicans, a violent about-face after years of working with the Biden administration to lower payments and secure debt relief. While the GOP proposals might change quickly, student loan forgiveness is now a thing of the past, and borrowers are bracing as their loans become a potential reconciliation target.
“We really see this as an attack on students and working families with student loan debt. We’ve seen an array of really problematic proposals that are on the table for congressional Republicans,” said Aissa Canchola Bañez, policy director for Student Borrower Protection Center. “Many of these would cause massive spikes for families with monthly student loan payments,” she added.
The House and Senate are working on competing massive legislative packages to fund the government and advance President Trump’s agenda, with the lower chamber aiming to vote on its budget reconciliation resolution as soon as Tuesday. With a slim majority, Speaker Mike Johnson (R-La.) can afford few defections.
House Republicans had more than a dozen proposals on the table in a January memo about how to cut higher education costs, with some considered more likely to come to pass than others. One that is seen as probable is the death of the Biden-era Saving on Valuable Education (SAVE) income-driven repayment (IDR) plan, which the 8th U.S. Circuit Court of Appeals ruled to block last week.
Read more: https://thehill.com/homenews/education/5161507-student-loan-payments-gop-budget-reconciliation-trump-johnson-biden/
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