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Senate GOP's Loan Reform Sparks Student Debt Concerns

6/19/2025

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Summary

Story summary

Senate Republicans propose major reforms to federal student loans, offering only two repayment options and extending terms to 30 years.
The plan removes deferments for economic hardship and unemployment, raising default risks for borrowers.
Employers can still assist with loan payments, which may help some borrowers.
Critics warn these changes could exacerbate the student debt crisis and increase borrower burdens.

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Story summary

Senate Republicans propose major reforms to federal student loans, offering only two repayment options and extending terms to 30 years.
The plan removes deferments for economic hardship and unemployment, raising default risks for borrowers.
Employers can still assist with loan payments, which may help some borrowers.
Critics warn these changes could exacerbate the student debt crisis and increase borrower burdens.