Student-Loan Borrowers Face Major Loan Repayment Changes With Gop Bill – ryan
Millions of Student-Loan Borrowers Could See Major Changes to their Repayment Under the Senate’s New Education Spending Proposal.
On Tuesday, Sen. Bill Cassidy – Chair of the Senate Education Committee – Unveiled the Education Gop Lawmakers Are Seeking to Include in President Donald Trump’s Spending Bill.
After the house passed its version of the Sweeping Spaking Legislation in Late May, the Senate Is Now Moving Forward With Its Amendments to the Legislation Aimore to Get It Summer. Some Elements of the Legislation Are the Same As the Ones That The House Passed, Like Condensing Existting Incom-Driven Repayment Plass, while Other Areas, Like Caps on Loans for Parents and Graduate Students, Have Changed.
“We Need to Fix Our Broken Higher Education System, so it prioritizes Student Success and Ensures Americans have the skills to computete in a 21st Century Economy, “Cassidy Said in a Statement.
The Senate’s Bill Proposes Eliminate Existing Incoming-Driven Repayment Plass, Including Paye, Incom-Conttingent Repayment, and Form President Joe Biden’s Save Plan, and Replancing say with two new plans.
The first plan-The Standard Repayment Plan-Allows Borrowers to Make Fixed Payments for 10-25 years Based on the original amout they borrowed, while the second plan-the repayment assistance plan-Payments at 1-10% of a borrower’s income with a minimum monthly of $ 10. The Plan Waled Waive Unpaid Interest, and Any Remaining Balance Wold Be Forgoven after 30 Years.
This Matches the House’s Proposal, and if signed ino law, it would borrowers Wauld have fewer options to repay ther less geneerus than the existting plans.
The Bill Also Proposes Some New Changes to Loan Limits. IT WOULD ELEMENT Graduate Plus Loans, Which Allow Graduate Students to Cover Up to the Full Cost of Attendance, CAP unsubsidized loans for graduate school, like a master’s degree, at $ 20,500 per year, and cap professional loans, Like Law School, at $ 50,000 per year.
IT WAUDED ALSO CAP PARENT PLUAND LOANS AT $ 20,000 PER STUDENT FOR YEAR, AND ELIATION LOAN DEFERMENT FOR ECONOMIC HARDESHIP AND UNEMTLOYMENT.
Some Advocates Expressed Concern with the Proposed Caps on Borrowing. Melanie Storey, President and CEO of the National Association of Student Financial Aid Administrators, Said in a Statement that “there are several concerts of this bill that Wauld Make College Affordable for Students.”
Those Include “The Elimination of the Grade Plus Program, the Elimination of Deferment Options for Loan Borrowers Faconomic Hardship or UNEmployment, and New Limits imposed on the parent plus loan that May Drive Borrowers to Riskier Loans, Which Are Not Availaable to All BorroWers,” Storey Said.
The Legislation Could Still Face Changes before it goes to the senate floor for a vote. More broadly, Millions of Student-Loan Borrowers Are Facing A Slew of Other Changes to the Student-Loan System. Trump Restarted Collections on Defaulted Student Loans on May 5, and while the administration of said it would social secity garnishment, it Still Expects to be Garnishment for default borrowers late this summer.
Sameer Gadkaree, President of the Institute for College Access and Success, Said in a Statement That the Gop Bill Bill Add to Challenges of the Collections Restart by Debt Much Harder to Repay “and” Unleashing an Avalnche of Student Loan Defaults. “”
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