Persis Yu, director of National Consumer Law Center’s Student Loan Borrower Assistance Project, issued the following statement.:
“The Higher Education Bill introduced today by House Republicans would make it more difficult and more expensive for millions of Americans to repay their student loans. It would also demolish safeguards that prevent low-quality schools from using abusive and predatory tactics to line their pockets with taxpayer dollars at the expense of students working to build a better life for their families.
“This bill would make it impossible for many low-income families to ever pay back their student loans by replacing the existing income-driven repayment plans with a much harsher plan. Under the Income Based Repayment plan outlined in the bill, it could take a low-income borrower with just $30,000 in student loan debt an incredible 138 years to repay their student loans. Borrowers should not have to take their student loan debt to the grave. Additionally, new minimum monthly payment amounts will push borrowers with the least income into default. Borrowers need real help paying their student loans; this bill severely misses the mark.”