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Senate Passes Big Changes to Student Loans in Reconciliation Bill

  • Last Tuesday night, the Senate narrowly approved a spending megabill, overhauling federal student loan programs significantly.
  • The megabill originated from GOP priorities to implement Trump’s legislative goals via reconciliation, embedding student loan reforms to support tax cuts and spending reductions.
  • The Senate bill reduces federal student loan repayment options to two, caps Stafford loans, and delays forgiveness for borrowers from July 2026 to July 2028.
  • Nearly every federal borrower will experience changes as the megabill heads to the House facing uncertain approval.
  • The bill now advances to the House, which aims to vote by July 4, with President Trump’s signature pending potential revisions or rejection, creating legislative uncertainty.
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Forbes broke the news in United States on Tuesday, July 1, 2025.
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