House Votes to Repeal Student Loan Forgiveness and Repayment Plans — 4 Key Takeaways for the Veterinary Community
In a narrow 215-214 vote, the U.S. House of Representatives passed a sweeping reconciliation bill that would dramatically change the federal student loan system. The legislation targets several key loan forgiveness and repayment programs and proposes over $300 billion in cuts to education-related funding.
The bill now moves to the Senate, where its future remains uncertain. For veterinary professionals and students—who often graduate with six-figure debt—these proposed changes could have significant, long-lasting impacts.
Here’s what you need to know:
1. Loan Forgiveness Programs on the Chopping Block
The bill proposes eliminating several critical student loan forgiveness options:
Borrower Defense to Repayment and Closed School Discharges, which help those misled by their schools, would be repealed.
Public Service Loan Forgiveness (PSLF) eligibility would no longer extend to medical and dental residents—raising concerns about whether veterinary professionals in public service roles could be next.
The Education Department would be blocked from implementing future broad-based forgiveness programs through regulation.
Tax relief on forgiven student debt would expire, potentially making future loan forgiveness taxable income—except in cases of death or total and permanent disability.
2. Income-Driven Repayment Plans Overhauled
The bill would eliminate several widely-used income-driven repayment (IDR) options:
The ICR, PAYE, and SAVE plans would be repealed. Borrowers currently enrolled in these would be moved to a modified version of the Income-Based Repayment (IBR) plan, which may result in higher monthly payments.
A new plan, called the Repayment Assistance Plan (RAP), would become the default for new borrowers. RAP includes higher payments for low-income borrowers and pushes forgiveness eligibility out to 30 years.
Parent PLUS borrowers—common among families supporting veterinary students—would lose access to most income-driven options.
3. Access to Federal Aid Could Shrink
The bill also takes aim at federal aid programs that many veterinary students rely on:
The Graduate PLUS and Parent PLUS loan programs would be phased out or severely restricted, forcing more students and families into private loans—which often lack income-driven repayment and forgiveness protections.
Pell Grant reforms would restrict access for low-income students, potentially reducing diversity and accessibility in professional fields like veterinary medicine.
The Bill is Not Final—Yet
While the House has passed the bill, it must still clear the Senate. Lawmakers there could revise, delay, or reject some provisions. However, Senate leaders have signaled openness to significant changes in student lending policies, including repealing the SAVE plan and narrowing repayment options.
Student borrower organizations have raised alarms. They argue that the bill would increase reliance on private lenders, reduce educational access, and leave borrowers—particularly those in high-debt fields like veterinary medicine—without affordable repayment options.
Why It Matters for Vet Med
Veterinary medicine is one of the most debt-burdened professions, with many graduates owing $150,000 or more in federal student loans. These proposed changes could eliminate key financial safety nets that help make the profession viable—particularly for those in public service, academia, or rural practice.
Now is the time for veterinary students, professionals, and associations to stay informed, speak up, and advocate for student debt policies that support accessible, affordable education in veterinary medicine. Ask your AVMA representative how they will support student loan protection.
