Tue Jan 28 05:10:00 UTC 2025: **House Republicans Propose Limits to Popular Student Loan Forgiveness Program**

Washington, D.C. – House Republicans are considering significant changes to the Public Service Loan Forgiveness (PSLF) program, a key component of federal student loan relief. A leaked policy memo from the House Budget Committee reveals plans to include PSLF reforms in a broader budget reconciliation bill aimed at extending expiring tax cuts.

While specifics are scarce, the memo calls for “reform[ing]” PSLF, including limiting eligibility. This could potentially impact the millions of borrowers who have benefited from the program since the Biden administration addressed long-standing servicing issues, leading to over a million loan forgiveness approvals.

The proposed changes are part of a larger Republican effort to overhaul federal student loan programs. The memo also suggests:

* **Repealing Biden-era regulatory changes:** This would make it harder for borrowers to qualify for relief under programs like Closed School Discharge and Borrower Defense to Repayment.
* **Eliminating Graduate PLUS and Parent PLUS loans:** These loans would be phased out for new borrowers starting July 1, 2025.
* **Ending interest subsidies for in-school borrowers:** This would increase the overall loan amount borrowers owe upon graduation.
* **Replacing income-driven repayment plans:** Current plans would be replaced with a new system potentially extending repayment periods significantly.

Republican lawmakers have a history of opposing PSLF, with past proposals ranging from capping forgiveness amounts to outright repeal. While the current proposal is not yet legislation, the use of budget reconciliation would allow its passage with a simple majority, bypassing the Senate filibuster. Even without legislative action, the administration could unilaterally alter PSLF regulations through the Education Department. This could involve reversing Biden-era changes that expanded eligibility criteria. Any such changes, however, could face legal challenges. The potential impact on borrowers remains unclear, pending the release of detailed proposals.

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