4 million student loan borrowers face payment cuts under GOP bill
- Legislation proposed by GOP lawmakers aims to repeal income-driven repayment plans for Parent PLUS borrowers, affecting nearly 4 million.
- The bill intends to solidify tax cuts benefiting wealthier Americans while potentially harming younger, lower-income individuals.
- If passed, the changes could leave many student loan borrowers without affordable repayment options, raising concerns about economic equity.
In the United States, legislative changes proposed by Republican lawmakers could significantly impact student loan borrowers, particularly those with Parent PLUS loans. As of June 2025, nearly 4 million Parent PLUS borrowers risk losing access to affordable repayment options if the GOP budget bill is enacted. Current plans, including Income-Contingent Repayment (ICR), are slated for repeal, eliminating a crucial form of financial relief. The overall objective of the GOP package is to make tax cuts permanent for wealthier Americans while anticipated cuts to federal programs could disproportionately affect younger generations and low-income households. This legislative action has raised concerns over economic equity, with a recent analysis suggesting that the wealth transfer effects could cost low-income infants and younger generations substantial amounts over their lifetimes, while older, wealthier individuals stand to gain significantly more. As Congress pushes to finalize this budget package in the coming days, the potential repercussions on student loan affordability and financial stability for younger Americans loom large.