Center for American Progress

RELEASE: Project 2025 Would Spike Student Loan Payments, CAP Analysis Finds
Press Release

RELEASE: Project 2025 Would Spike Student Loan Payments, CAP Analysis Finds

Washington, D.C. — For the first time, new analysis from the Center for American Progress details just how devastating the radical Project 2025 policy agenda’s impact would be on federal efforts to mitigate the U.S. student debt crisis.

Specifically, Project 2025 proposes eliminating all existing income-driven repayment plans for student loan borrowers—including the Biden-Harris administration’s groundbreaking SAVE plan—and implementing a “one-size-fits-all” plan. For millions of American borrowers, this radical new plan would mean spiked monthly student loan payments, ballooning interest, and heavy blows to credit scores.

CAP’s analysis includes these key findings:

  • People who attended college but did not earn a degree or certificate would see their monthly payments almost quadruple.
  • Community college borrowers would see their payments more than triple.
  • Typical borrowers across the board would pay anywhere from $2,700 to $4,000 more per year compared with payments under the SAVE plan.
  • The income threshold at which borrowers are required to make payments would be slashed in half, meaning a family of four living on $31,000 or an individual making $15,000 would be forced to start making monthly payments.

“Project 2025 would increase the cost of living for millions of student loan borrowers, pushing more borrowers into default and forcing others to pay in perpetuity,”said Sara Partridge, senior policy analyst for Higher Education at CAP and co-author of the column. “Offering affordable repayment options is key to making sure borrowers aren’t forced to choose between making student loan payments on time and meeting their basic human needs.”

“What’s more, this dangerous far-right vision for student loan repayment would cause the most harm to those already most likely to struggle with their loans and experience default, including Black, young, and low-income borrowers,” said Madison Weiss, policy analyst for Higher Education at CAP and co-author of the column.

Read the column:Project 2025 Would Increase Costs, Block Debt Cancellation for Student Loan Borrowers” by Sara Partridge and Madison Weiss

For more information or to speak with an expert, contact Mishka Espey at [email protected].

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