House Republicans have now introduced a shocking alternative that would lock federal student loan borrowers into as much as 30 years of debt repayment. The prospect has millions of borrowers worried about their financial future. The “One Big Beautiful Bill Act” would implement massive spending and tax programs. Though it is meant to improve current income-driven repayment plans, this has raised substantial alarm over the future impact on borrowers.
As it stands now, most federal student loan repayment plans are 10-25 years. However, the proposed alterations could extend repayment terms significantly, forcing many individuals to carry their educational debt into middle-age and beyond. As of Q1 2025, approximately 2.9 million people age 62 and older hold federal student loans. This is a remarkable 71% leap from 2017, when the figure stood at only 1.7 million.
Under the new plan, monthly payments would be determined using a borrower’s income. These payments will be decreased between 1% and 10%. This could be structured so that those who earn more would pay much higher installments. They can decide to retire their debt to institutions along fixed payment circuits. Their options range from 10 to 25-year terms. Or, they could choose an IDR plan, which gives loan forgiveness after 30 years.
Opponents of the HUD rule changes have said increasing repayment terms would be catastrophic to borrowers’ economic wellbeing. Mark Kantrowitz, a higher education policy expert, panned the idea, saying, “A 30-year repayment term means indentured servitude.”
James Kvaal, who formerly held that position as U.S. undersecretary of education under former President Joe Biden, voiced these worries as well. He recognized the potential upside of making repayment programs simpler, but warned against lengthening the repayment term.
Simplifying the program with fewer repayment plans is a good idea, but not at the cost of another decade of repayment.” – James Kvaal
At the moment, borrowers can choose from about twelve different repayment plans for their federal student loans alone. The real-world impact of the proposed changes will be to narrow your options. This is a huge deal to those of us who think making the process easier shouldn’t come at the expense of financial health.