Congressional Republicans seek to overhaul the federal student loan program, presenting significant changes that could impact millions of borrowers. Central to this effort is the proposal to simplify repayment options into two plans: a standard plan that divides debt into equal monthly payments based on amount owed and a Repayment Assistance Plan tied to borrowers' income. Under the standard plan, repayment periods range from 10 to 25 years, while the assistance plan could lower payments substantially for those earning less. This move forms part of a larger reconciliation package that also extends tax cuts from 2017.
The overhaul proposes to restructure student loan repayment into a straightforward choice between a standard payment plan or an income-tied option.
Under the new plan, borrowers can expect their loan repayment periods to range between 10 to 25 years, depending on their debt size.
Congressional Republicans are pursuing an ambitious overhaul of the federal student loan program that could fundamentally change repayment options for millions of borrowers.
The Repayment Assistance Plan is aimed at borrowers struggling with income, allowing for payments as low as $10 a month based on earnings.
Collection
[
|
...
]