Included in the bill are major reforms to student loan repayment plans and loan forgiveness programs – but with some notable changes.
Senate Republicans on Saturday narrowly voted to advance the megabill containing President Donald Trump’s main domestic priorities, including sweeping tax cuts. And included in the bill are major reforms to federal student loan repayment plans and loan forgiveness programs – but with some notable changes.
The package cleared an important procedural hurdle on a 51 to 49 vote on Saturday night, with two Republican joining all Democrats to oppose the bill. The narrow success now allows the bill to advance to the Senate floor for a more extended debate, which could culminate in the bill’s passage as soon as Monday.
GOP lawmakers made some changes to the student loan provisions of the bill after a key Senate official ruled that some elements did not comply with the chamber’s reconciliation rules that allow bills to bypass the filibuster and pass the chamber with a simple majority. While the legislation would still make major reforms to federal student loan programs, the tweaks that lawmakers made are noteworthy. Here’s a breakdown of the changes.Repeal Of Student Loan Repayment Plans For Current Borrowers
Prior Version: The original version of the Senate reconciliation bill would have repealed the Income-Contingent Repayment, Pay-As-You-Earn, and Saving On A Valuable Education plans for current borrowers shortly after its enactment. These are three popular income-driven repayment plans that provide borrowers with affordable payments based on their income and family size, with student loan forgiveness after 20 or 25 years. The bill would have preserved the Income-Based Repayment, or IBR, plan, and moved current borrowers enrolled in these plans into a modified version of IBR. The Senate parliamentarian had ruled that these provisions governing current student loan borrowers violated senate reconciliation rules.
New Version: The updated Senate bill would still repeal ICR, PAYE, and SAVE, and move these borrowers into a modified version of IBR, which could increase their monthly payments. However, it would delay implementation. New loans taken out on or after July 1, 2026 would not be eligible for existing IDR options, but current borrowers enrolled in ICR, PAYE, or SAVE would not have to be moved into IBR until 2028.
