On Tuesday, the House education committee unveiled a Republican plan to overhaul the federal student loan system, aiming to cut over $330 billion in federal spending. The proposal includes replacing existing income-contingent repayment options with a single Repayment Assistance Plan and eliminating the Grad PLUS loan program. It also imposes reimbursement requirements on colleges for unpaid student loans. While Republicans argue the current system is broken and harms students, Democrats warn these changes will increase costs and limit access to quality education programs, further fueling a divisive debate in Congress.
If there is any consensus when it comes to student loans, it's that the current system is effectively broken and littered with incentives that push tuition prices upward. Schools have no reason to lower costs or ensure degrees align with employer needs, all while students and taxpayers pay the price.
This current reconciliation plan would increase costs for colleges and students, limit students' access to quality programs and then take the so-called 'savings' to pay for more tax cuts for the wealthy and the well-connected.
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