Overview

• The Senate’s education proposal replaces all existing income-driven repayment plans with a standard 10-to-25-year fixed repayment plan and a repayment assistance option capped at 1–10% of income with a $10 minimum payment.
• It caps unsubsidized graduate loans at $20,500 per year, professional program loans at $50,000 per year, and Parent PLUS loans at $20,000 per student annually.
• The bill eliminates deferment options for economic hardship and unemployment, prompting concerns from financial aid administrators that affordability could decline for struggling borrowers.
• New earnings-based accountability rules would strip programs of federal loan eligibility if graduates’ median earnings fall below benchmarks for comparable degree holders.
• A preliminary analysis shows the Senate version saves about $30 billion less than the House bill as lawmakers prepare to reconcile differences before a final vote.