Student Loan Forgiveness Shake-Up: Is Your Plan on the Chopping Block?
New GOP bill targets four key groups—find out if you’re one of them and what you can do next.
Hey there, if you’ve been crossing your fingers for student loan forgiveness, you might want to take a seat for this one. Recently, House Republicans introduced a new education reform bill, and let’s just say…it’s not exactly borrower-friendly. In fact, it’s set to hit four key groups pretty hard. Let’s break it down together.
The Four Groups That Could Lose Out
Borrowers in Income-Driven Repayment (IDR) Plans
If you’re relying on an Income-Driven Repayment plan like SAVE, PAYE, or ICR, brace yourself. The new proposal aims to completely eliminate these plans. Yup, you read that right. Instead, borrowers would be left with just two options: a standard fixed repayment plan or a new Repayment Assistance Plan that drags payments out for 30 years before any hope of forgiveness. That’s three whole decades of payments! (Not to make you do the math, but that’s basically forever in student loan years.)Graduate and Professional Students
Planning on getting that Master’s or maybe going to law school? Well, heads up. Starting July 1, 2026, federal PLUS loans for graduate and professional students are on the chopping block. This change would cap borrowing for grad students, making it a lot trickier to finance those advanced degrees. It’s like they’re saying, "Good luck, but not too much luck."Low-Income and Part-Time Students
Pell Grant eligibility is also getting a shake-up. If you’re a part-time student or juggling work and school, this one’s for you. The new bill wants students to enroll in at least six credit hours just to qualify, and to get the maximum grant, you’d need to be pulling 15 credit hours instead of the current 12. So, if you were squeezing by with lighter semesters…well, not anymore.Public Service Workers
Remember the Public Service Loan Forgiveness (PSLF) program? The one that lets you kiss your remaining student debt goodbye after 10 years of public service? Yeah, that one’s getting some serious restrictions too. An executive order signed by President Trump could potentially exclude those working for organizations with a so-called “substantial illegal purpose.” And I know you’re wondering what that means—well, that’s still up for interpretation. But it could impact a whole lot of nonprofit workers if it goes through.
So…What Now?
I know it sounds like a lot—and it is. These changes aren’t final yet, but it’s a good idea to stay in the loop. If you’re impacted, it might be time to start exploring alternative repayment options, look into financial counseling, or maybe even give your representative a call (seriously, it can help).
If you want the full scoop, check out the original article from Forbes right here.
Stay informed, and don’t let this one catch you off guard.
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