Student Loan Planner Scenarios for the Republican Student Loan Bill
May 13, 2025
The proposed Republican student loan bill is shaking up repayment strategies. While undergraduates may benefit, graduate borrowers face potential devastation. Key changes could include eliminating PSLF and imposing strict loan limits that might hinder first-generation students pursuing advanced degrees. The intricate legislative process could see this bill reaching the President soon. Detailed insights into these shifts and practical foresight for borrowers are discussed, making it essential listening for anyone with student loans.
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Reconciliation Enables Major Loan Changes
- The reconciliation process allows passing student loan laws with a simple Senate majority, bypassing the filibuster.
- This makes student loans lawmaking more susceptible to swift and significant political shifts.
House GOP Loan Bill Details
- The House GOP student loan proposal harms graduate borrowers significantly while slightly benefiting undergraduates.
- Existing borrowers face tougher repayment terms but retain limited forgiveness options.
Keep Federal Loans for Forgiveness
- Keep your federal loans if your debt-to-income ratio is above 1.5 to 2 for potential forgiveness under future legislation.
- Take advantage of all 0% interest options and the current SAVE plan benefits while they last.