Congress Considers Law to Increase Student Loan Payments [View all]

Source: Newsweek

Published Nov 27, 2024 at 3:44 PM EST


While President Joe Biden has cleared millions' student loan debt during his presidency, Congress could now approve a law that would increase student loan payments for a large number of borrowers.

The College Cost Reduction Act is predicted to reduce the government deficit by $250 to $280 billion over a decade, according to the Committee for a Responsible Federal Budget.

Specifically, Congress could save $155 billion from the law's changes to Pell grants and student loans and $127 billion from repealing and replacing Biden's SAVE income-driven repayment plan, which is currently facing legal challenges.

North Carolina Republican Representative Virginia Foxx introduced the bill this year. If implemented, it would require borrowers to pay back what they owe on a 10-year standard payment and double the Pell grant award for juniors and seniors at college on track to graduate.

Read more: https://www.newsweek.com/congress-considers-law-increase-student-loan-payments-1992752