The Fiscal Responsibility Act of 2023 (FRA) was signed into law on May 29, 2023. The FRA includes a number of provisions that affect student loan repayment, including:
Ending the student loan repayment pause. The FRA ends the student loan repayment pause that was put in place in March 2020 due to the COVID-19 pandemic. Repayment for federal student loans will resume on September 1, 2023.
Expanding work requirements for federal student aid programs. The FRA expands work requirements for federal student aid programs, such as Pell Grants and federal student loans. Under the new requirements, students will need to meet certain work requirements in order to be eligible for federal student aid.
Reducing the maximum amount of federal student loan debt that can be forgiven through income-driven repayment plans. The FRA reduces the maximum amount of federal student loan debt that can be forgiven through income-driven repayment plans from $20,000 to $10,000.
The FRA has been met with mixed reactions from student loan borrowers. Some borrowers are relieved that the student loan repayment pause is ending, while others are concerned about the impact of the new work requirements and the reduction in the maximum amount of debt that can be forgiven through income-driven repayment plans.
It is important to note that the FRA is a complex piece of legislation, and the full impact of its provisions on student loan repayment is still being debated. However, it is clear that the FRA will have a significant impact on student loan borrowers, and it is important to understand the changes that are taking place.
If you are a student loan borrower, it is important to contact your loan servicer to learn more about how the FRA will affect your loan repayment. You may also want to consider consolidating your student loans or refinancing them into a private loan with a lower interest rate. Please use the link below to schedule a free discovery call Click Here