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Simplifying Student Loan Repayment: New Plans and Lower Interest

This act introduces significant changes to student loan repayment, offering new, simpler repayment plans and lowering interest rates for new loans. The goal is to make managing student debt easier and reduce financial burdens for many individuals, both those just starting repayment and those already doing so.
Key points
Effective July 1, 2023, only two main repayment plans will be available: a fixed repayment plan and an income-based repayment plan.
Interest rates for new student loans disbursed on or after July 1, 2023, will be reduced to 1%.
Borrowers currently repaying loans can choose to keep their existing plan or switch to one of the new plans.
The new income-based repayment plan will require payments of 10% of income above a certain threshold, with remaining balances potentially forgiven after 20 years of payments.
The new fixed repayment plan adjusts the repayment period (from 10 to 25 years) based on the loan amount, offering consistent monthly payments.
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Additional Information
Print number: 117_HR_8700
Sponsor: Rep. Wild, Susan [D-PA-7]
Process start date: 2022-08-09
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Simplifying Student Loans Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_8700.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-08-09.

What are the main provisions?

Key points include:

  • Effective July 1, 2023, only two main repayment plans will be available: a fixed repayment plan and an income-based repayment plan.
  • Interest rates for new student loans disbursed on or after July 1, 2023, will be reduced to 1%.
  • Borrowers currently repaying loans can choose to keep their existing plan or switch to one of the new plans.
  • The new income-based repayment plan will require payments of 10% of income above a certain threshold, with remaining balances potentially forgiven after 20 years of payments.
  • The new fixed repayment plan adjusts the repayment period (from 10 to 25 years) based on the loan amount, offering consistent monthly payments.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Wild, Susan [D-PA-7].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and Labor.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Education Economy