On Jan. 11, House Education and the Workforce Committee Chair Virginia Foxx (R-N.C.) introduced the College Cost Reduction Act (CCRA, H.R. 6951). Among other provisions, the CCRA would sunset the Grad PLUS and Parent PLUS loan programs, lower the cap for total aggregate unsubsidized Direct Loan borrowing to $200,000 per borrower, limit student loan repayment plan options, and prohibit the secretary of Education from creating new or modifying existing repayment plans if they increase costs to the government.
The legislation would also eliminate certain additional costs to borrowers, including student loan origination fees and all instances of interest capitalization. Additionally, the bill would provide regulatory relief from financial value transparency and gainful employment regulations and repeal financial responsibility regulations. The AAMC submitted comments to the Department of Education expressing concern over some of these regulations in June 2023, and the department finalized the rule on Sept. 27, 2023 [refer to Washington Highlights, Oct. 6, 2023].
- Washington Highlights