Here’s what your monthly student loan bill could be under a new Republican plan
2025-05-01T15:18:50Z
House Republicans have a plan to drastically change how millions of Americans repay their student debt. Take a look at what your bill might be.
U.S. Secretary of Education Linda McMahon smiles during the signing event for an executive order to shut down the Department of Education next to U.S. President Donald Trump, in the East Room at the White House in Washington, D.C., U.S., March 20, 2025.
House Republicans have a plan to drastically change how millions of Americans repay their student debt.
Under the GOP’s new proposal, known as the Student Success and Taxpayer Savings Plan, there would be just two repayment options for those with federal student loans. Currently, borrowers have about 12 ways to repay their student debt, according to higher education expert Mark Kantrowitz.
If the GOP plan is enacted, borrowers would be able to pay back their debt through a plan with fixed payments over 10 to 25 years, or via an income-driven repayment plan, called the “Repayment Assistance Plan.”
Under the RAP plan, monthly bills for borrowers would be set as a share of their income, said Jason Delisle, a nonresident senior fellow at the Urban Institute. The percentage of income borrowers’ would have to pay rises with their earnings, starting at 1% and going as high as 10%.
House Republicans unveiled their agenda to overhaul the student loan and financial aid system at the end of April, in an effort to tout savings for President Donald Trump’s planned tax cuts.
Here’s what monthly bills for student loan borrowers could be if the proposal becomes law.
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