Congress Considers Law to Increase Student Loan Payments

[BumRushDaShow]

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

[VMA131Marine]

1. $40K is the average student loan debt

with an average interest rate of 6.5%

That works out to a monthly payment of $454/month.

However, people who get graduate and professional (doctors, lawyers, etc) degrees typically end up with much more debt and the average is $90K for those people. On the same terms, that works out to a monthly payment of over $1000.

As far as I can tell, this proposal will just mean fewer people going to college. Fewer students means higher prices which will lead to even fewer students and so on in a death spiral as lots of smaller colleges are forced to close or merge to stay viable. This proposal does not make college more affordable.

BTW, the Federal Pell Grant program cost $30B per year as compared to the $100B of new student loans issued per year.

[Joinfortmill]

2. Well, they f*cked around. Now, they'll find out.

[choie]

5. Who fucked around?

[Joinfortmill]

6. The Trump voters.

[dweller]

3. More and more

will default on the loans .
What do the repugs think would happen ?


✌🏻

[choie]

4. If that goes through

I’m beyond screwed. My plans for the future like buying a house or saving for retirement would die.

[not fooled]

7. Right on cue

post-election, pukes begin to attempt to enact the actual GQPee agenda -- make education harder to get, impose more financial burdens on the middle and working classes to fund massive tax cuts for the wealthy. Work to make America a stupider, poorer place for most people. Too bad so many 'Muricans couldn't understand this before the election.

[SomewhereInTheMiddle]

8. I think many Trump voters are secretly certain they will somehow join the ranks of the ultra-wealthy ...

And they don't want to have to pay any pesky progressive taxes when they finally get there.

It IS the American dream after all.

[perdita9]

9. America is going to get what it voted for

Actions have consequences