Marketplace All-in-One How will the reconciliation bill affect student loans?
Jun 16, 2025
Dive into the intricacies of a massive reconciliation bill, packed with tax cuts and spending boosts, while examining how these changes could ripple through student loan policies. Discover the potential pitfalls for borrowers, including the threat of increased defaults as experts weigh in. Delve into the uncertain future of Pell Grant funding and the heated congressional negotiations surrounding it. What happens next is crucial—join the conversation that could shape higher education access for many!
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Reconciliation Bill Process
- The reconciliation bill uses a special budget process allowing passage with a simple majority and no filibuster, led by Republicans.
- This enables them to push the bill through Congress without Democratic votes, affecting tax cuts and spending priorities.
Byrd Rule and Its Impact
- The Byrd Rule restricts what can be included in the reconciliation bill to budget-related items only.
- The Senate parliamentarian enforces the rule, but Republicans might bypass some restrictions if politically advantageous.
Student Loan Repayment Overhaul
- The Senate Republican proposal would cut most current student loan repayment plans, including Biden's SAVE program, leaving only two options.
- Adjusted income-based plans would increase payments for low-income borrowers and extend forgiveness from 20 to 30 years.