The Center for American Progress (CAP) has released a new analysis detailing the potential impact of Project 2025 on federal efforts to address the U.S. student debt crisis. The report suggests that Project 2025, which proposes eliminating all existing income-driven repayment plans—including the Biden-Harris administration's SAVE plan—in favor of a "one-size-fits-all" approach, would significantly increase monthly student loan payments for millions of borrowers.
Key findings from CAP's analysis include:
- Individuals who attended college but did not earn a degree or certificate could see their monthly payments nearly quadruple.
- Community college borrowers might experience more than triple their current payments.
- Typical borrowers could pay between $2,700 and $4,000 more annually compared to payments under the SAVE plan.
- The income threshold for mandatory repayments would be halved, affecting families of four earning $31,000 or individuals making $15,000.
Sara Partridge, senior policy analyst for Higher Education at CAP and co-author of the column, stated: “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. 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.”
Madison Weiss, policy analyst for Higher Education at CAP and co-author of the column, added: “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.”
The full column titled "Project 2025 Would Increase Costs, Block Debt Cancellation for Student Loan Borrowers" by Sara Partridge and Madison Weiss is available through CAP.
For further information or expert commentary, contact Mishka Espey at [email protected].
