Student Loan Planner What Will the GOP Do First on Student Loans?
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Jan 21, 2025 With a new administration on the rise, the future of student loans hangs in the balance. The GOP’s budget reconciliation bill could significantly affect borrowers nationwide. There's a proposal to end time-based forgiveness, pushing for full repayment of both principal and interest. Coupled with potential spending cuts, the landscape of student debt is set for a shakeup. Key uncertainties linger around whether the Biden administration’s income-driven repayment adjustments can withstand this political shift.
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GOP Reconciliation Bill
- The GOP’s budget reconciliation bill could significantly impact student loans.
- This bill allows bypassing the 60-vote requirement in the Senate for spending-related matters.
One Big Bill vs. Smaller Bills
- Republicans debate one large bill versus breaking it into smaller ones.
- One large bill risks opposition from various interest groups, potentially affecting student loan provisions.
College Cost Reduction Act
- The GOP's proposed College Cost Reduction Act creates a new income-driven repayment plan.
- This plan eliminates time-based forgiveness, requiring full principal and interest repayment.