Bill > HR4862

This bill, known as the LOAN (Lowering Obstacles to Achievement Now) Act, proposes comprehensive reforms to federal student loan programs, focusing on several key areas. The bill would double the maximum Pell Grant award, increasing it from its current level to $14,000 by 2031, with automatic annual adjustments for inflation. It introduces two new repayment plans for federal student loans starting in July 2026: a fixed repayment plan and an income-driven repayment plan that caps monthly payments at a percentage of discretionary income and offers loan forgiveness after a certain number of qualifying payments. The legislation also aims to streamline the Public Service Loan Forgiveness program by reducing the number of qualifying payments from 120 to 96 and expanding eligibility to include independent contractors. Additionally, the bill eliminates interest capitalization, reduces interest rates for new loans to a maximum of 5%, creates a refinancing program for existing federal and private student loans, and provides more support for borrowers in default by offering rehabilitation options and credit reporting improvements. The bill also extends federal aid eligibility to Dreamer students and modifies academic progress requirements to be more student-friendly.

Education

https://www.congress.gov/bill/119th-congress/house-bill/4862/all-info