So Are They Really Trying to Kill Loan Forgiveness?
Yeah, that’s exactly what’s happening. Senate Republicans just dropped their version of the higher education bill, and if you’ve been counting on Student Loan Forgiveness Programs, this isn’t good news. They’re sticking with most of the harsh changes the House already pushed, which means loan forgiveness could seriously shrink for millions.
Income Based Repayment Plans? Say Goodbye (Mostly)
Right now, borrowers can make smaller payments tied to how much they actually earn. Seems fair, right?
But under this bill, most of those plans like ICR, PAYE, SAVE could be scrapped. Instead, everyone would be shoved into a stricter IBR plan with higher payments and longer payoff periods. More money out of pocket, less relief down the road.
A New Plan That Doesn’t Really Help Much
They’re calling it the Repayment Assistance Plan (RAP) sounds helpful, right?
Not so much. Sure, there’s an interest cap so your balance doesn’t spiral out of control. But for folks making the least, payments could still go up. And the kicker? You’d have to wait 30 years before any forgiveness kicks in.
That’s… basically a life sentence with your loans.
Public Service Loan Forgiveness, Now with More Exceptions
The Public Service Loan Forgiveness (PSLF) program has been a lifeline, especially for people in community service jobs. But this bill? It’s cutting off medical and dental residents from PSLF.
It feels like every time people finally figure out the system, someone moves the goalposts.
What About Those Borrower Protections?
Remember those rules that help students when their school shuts down or scams them? This bill wants to tear those down too. Plus, the Department of Education’s hands would be tied they wouldn’t be able to create new forgiveness programs in the future.
So basically, less protection when things go wrong.
And Yep! They’re Coming for Parent PLUS Loans Too
The plan isn’t sparing PLUS loans either. The Graduate PLUS program? They want to scrap it. Parent PLUS? Major limits. And if you’re a parent trying to get into an income based repayment plan? Forget it, they’re shutting that down, too.
What’s Next? Honestly, Watch This Space
This isn’t law yet. The bill still needs to clear Senate committees, hit the floor for votes, and survive a trip back to the House. But with both chambers on the same page? It’s definitely not looking great for borrowers.
