What the GOP’s megabill means for federal student loan borrowers
The Senate spent spending Megabil on Tuesday night narrowly. The Assembly aims to vote for the bill and send it to President Donald Trump until July 4, but it is unclear whether the Republicans have votes that will pass the bill.
The invoice makes some significant changes for federal student loan borrowers between numerous provisions aiming to reduce federal expenditures and increase tax income.
Most of the changes in student borrowing, such as lower limits in graduate loans, will not affect off -school and currently reimbursement borrowers. However, in addition to the loan areas next summer and after the next summer, the predicted 8 million debtor A valuable educational revenue -oriented reimbursement plan can wait for more transactions for saving, if the house passes as it is, it can wait for less repayment options.
The change in reimbursement plans may be one of the most effective provisions of the bill for the current and future federal student loan borrowers.
Two years to choose from two plans
Those who have been distributed on July 1, 2026 or after the borrower and those who are currently registered in the savings plan – those who have been harassing an administrative harassment since the federal courts prevented the plan from entering into force in July 2024 – It will only have two repayment plan options.
The borrowers in the savings plan will still have to choose another plan if the federal courts take a temporary precautionary measure against it. In accordance with the legislation of the Republicans, these borrowers will be between July 2026 and July 2028 to choose a new plan. After July 1, 2028, borrowers will automatically move to revenue -based repayment plan.
The new standard plan will pay a fixed monthly payment to the borrowers to pay loans between 10 and 25 years depending on the size of their loans. The current standard plan has a 10 -year loan period regardless of the borrowed amount.
The refund aid plan will calculate monthly payments between 1 to 10% of a debtor’s optional income from the current bids that set payments in 10%, 15% or 20% of a debtor’s income.
An analysis found that the monthly payments of the borrowers would have increased hundreds of dollars on rap compared to what will be in the savings plan.
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