Proposals Under Consideration Will Drastically Raise Costs for Working Class Families, Make Paying for College More Expensive and Risky, and Worsen the Student Debt Crisis
January 17, 2025 | WASHINGTON, D.C. — Today, news reports revealed that House Budget Committee Republicans are circulating a menu of policies under consideration for budget reconciliation. Among the 50 pages of policy proposals, House leaders are looking to repeal critical repayment plans that have made student loan payments more affordable for more than 8 million Americans, capping vital financial aid programs like the Pell Grant and eliminating critical loan programs that help working class families pay for college, and rolling back critical regulations that help provide justice for students who were defrauded by predatory colleges. Additionally, the sprawling list of policies includes efforts to limit eligibility for the Public Service Loan Forgiveness program—which has provided debt relief for more than 1 million first responders, servicemembers and veterans, nurses, and educators.
In response, Student Borrower Protection Center (SBPC) Executive Director Mike Pierce issued the following statement:
“Make no mistake, this leaked document is evidence that House Budget Committee Republicans— cheered on by DC lobbyists and special interests—will stop at nothing to cut taxes for their millionaire friends and big corporations on the backs of working class families.
“These dangerous cuts will cause chaos across the economy—causing monthly student loan payments to spike for millions of working families and making paying for college more expensive and risky. On the heels of an election where the American people made it clear that they want policymakers to take action to bring down everyday costs—from eggs and gas to medical, credit card, and student debt—the MAGA movement is showing us who they really care about, and it’s not working people.”
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About Student Borrower Protection Center
Student Borrower Protection Center (SBPC) is a nonprofit organization focused on eliminating the burden of student debt for millions of Americans. We engage in advocacy, policymaking, and litigation strategy to rein in industry abuses, protect borrowers’ rights, and advance racial and economic justice.
Learn more at protectborrowers.org or follow SBPC on Twitter @theSBPC.