Student loan borrowers would have fewer repayment options under GOP megabill

The Senate narrowly passed its spending megabill on Tuesday night.

The Senate narrowly passed its spending megabill on Tuesday night. The House is aiming to vote on the bill and send it to President Donald Trump by July 4, but it’s unclear whether Republicans have the votes to pass the bill in its current form.

Among numerous provisions aimed at reducing federal spending and increasing tax revenue, the bill lays out some major changes for federal student loan borrowers.

Most of the changes to student borrowing, such as lower limits on graduate loans, won’t impact borrowers who are out of school and currently in repayment. But those taking out loans next summer and after, as well as an estimated 8 million borrowers awaiting further action on the Saving on a Valuable Education income-driven repayment plan, can expect fewer repayment options if the House passes the bill as is.

The change to repayment plans could be one of the most impactful provisions of the bill for current and future federal student loan borrowers.

The Senate’s bill narrows the number of repayment options currently available to federal student loan borrowers down to just two plans: a standard repayment plan and a new income-driven plan known as the Repayment Assistance Plan. Borrowers on any of the currently existing repayment plans, except the SAVE plan, will be able to keep their plans and monthly payments the same.